Pros and Cons of Outsourcing the Auditing Function?



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james dangarembizi
Student (Other), Zimbabwe

Pros and Cons of Outsourcing the Auditing Function?

What are the advantages and disadvantages of outsourcing the internal audit function of an organization?
 
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Pamela Patterson
Business Consultant, United States
 

Advantages and Disadvantages of Outsourcing Internal Audit

Pros:
- May be less costly
- External firm has experts

Cons
- Internal employees have more knowledge of your business
- Employees may be more open to internal auditors than external
- Incremental/ add-ons may erode cost benefit
- Process experts/knowledge is not within the business
- Non-disclosure/ ip issues need to be considered

Might consider a rotational program where internal employees rotate into internal audit for a period of time at the expense of the business in order to develop people.

   

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