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Guide to Outsourcing Internal Audit?


The decision of whether to keep an internal audit in-house or outsource it should be based on a company's specific needs and resources.


Why a company should outsource an internal audit:

  • Access to specialized expertise and skill sets.

  • An objective and impartial evaluation of the company's operations.

  • Reduced cost as compared to maintaining a full-time internal audit staff.

  • Easy to scale up and scale down based on requirements.

If a company decides to outsource its internal audit, there are several steps that can be taken to ensure a successful engagement:

  • Identify the scope of the audit: Determine what areas of the business will be covered by the audit, and what specific objectives the audit will aim to achieve.

  • Choose a reputable and experienced auditor: Research potential auditors, and select one that has the relevant industry experience and a good reputation.

  • Establish clear communication and expectations: Clearly communicate the scope of the audit and the specific objectives to the auditor, and establish clear expectations for the outcome of the audit.

  • Monitor the progress of the audit: Regularly check in with the auditor to ensure that the audit is progressing as planned, and address any issues or concerns as they arise.

  • Review and act on the findings: Once the audit is complete, review the findings and recommendations, and develop a plan to address any issues identified.

Outsourcing internal audits can be a cost-effective way to ensure that the company's operations are being run efficiently and effectively, while also providing an objective and impartial evaluation of the company's performance.

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