Internal Audit Outsourcing

Outsourcing benefit:

  • An audit team with more experience and additional specializations than most organizations generally can afford on staff full time
  • The team’s exposure to a broad variety of financial services and other organizational environments provides industry-wide knowledge and best practices

Service benefit:

  • Builds, supports and monitors risk management within an organization
  • Increases effectiveness of governance
  • Meets regulatory requirements for most companies
  • Serves as early-warning system for financials or regulatory compliance going awry
  • Provides assurance to external stakeholders

Who’s most likely to benefit:

Organizations which:

  • Have few or no internal audit resources
  • Require geographically dispersed internal audit resources
  • Need to supplement internal resources in specialized areas
  • Want to increase independence of internal audit through outsourcing
  • Due to FDICIA (if applicable), can no longer receive internal audit services from their external auditor

Description:

Independently of an organization’s top management, an internal audit team performs a risk-based assessment of an organization’s reliability and integrity of financial information, security over assets, compliance with laws and contracts, and internal controls. An internal audit team also may review risk related to information technology, fraud, and third-party and vendor transactions or relationships. Reports may include recommendations for improvement or risk management.