Internal audit outsourcing entails using a third-party or outside Company to serve as your third line of defense, which means engaging internal auditing services of independent professionals who are not necessarily the Company’s employees. Internal Audit Outsourcing allows the organization to employ a temporary staff of audit experts to perform objective analysis and tests, and issue reports. The primary rationale for outsourcing is that it offers audit teams access to a wealth of technical skills.
To provide added value and fill gaps in skills and talent, many leading organizations are turning to outsourcing. In a full outsourcing arrangement, an external service provider acts as the IA function, helping to:
- Provide the organization with a greater level of assurance and risk coverage;
- Offer short- and long-term cost flexibility and scalability;
- Save the organization in costs;
- Boost operational efficiency and performance;
- Coordinate with the organization’s governance, risk, and compliance program;
- Identify and manage emerging risks more effectively;
- Provide broader skills sets and deeper industry specialization, on an as-needed basis;
- Supply intellectual capital, offering proactive insights and recommendations on leading practices;
- Provide access to leading-edge tools and methodologies, such as data analytics;
- Redeploy valuable internal resources toward core business activities;
- Execute on business strategy more effectively and achieve strategic goals and objectives;
- Transfer knowledge and capabilities to the organization.
