Internal Audit – Outsourcing For Value and Effectiveness
- Many organisations have decided to focus on their core business and any activities that are not seen as core, have been outsourced to appropriate service providers to manage given their expertise, experience and skills. Internal audit has been identified as one of these areas, i.e. non-core but needed for the benefit of the organisation.
- Outsourcing allows organisations to cut costs by taking advantage of internal auditing services only as and when they are needed rather than maintain an entire internal audit department in the organisations even at times when their services are not required. Thus, organisations only pays for the time an independent internal audit services provider is engaged, invariably helping to save on its operational costs.
- Internal audit function is an integral tool of management, financial and operational controls. Most organisations have already established an internal audit function, whether in housed or outsourced and are now reaping the benefits derived from this important function. However, the setting up of an effective audit function requires good planning, experience and methodology in order to keep up with current and emerging developments in the fields of internal audit. Outsourcing therefore enables an objective albeit pragmatic approach to internal auditing functions to be performed.
- Independent and objective evaluation on the adequacy and effectiveness of the organisation’s system of internal controls;
- Appraisal of system against control objectives to identify the strengths and weaknesses in the internal control system;
- Assessment on the organisation’s exposure on various risk factors that may have significant impact on the business and operational functions;
- Analyse and examine that operations are efficient;
- Provide assurance on compliance to relevant statutory requirements, laws, regulations, organisation’s established policies and guidelines; and
- Recommend appropriate control measures to overcome deficiencies/weaknesses and to enhance organisation’s operations.
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