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?

  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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