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Internal audit

Outsourcing the internal audit function

4.1 Advantages

 Professional firms follow an ethical code of conduct and should therefore be
independent of the client and their management.

 Professional firms should have qualified, competent staff who receive regular
development and have a broader range of expertise.

 Overcome a skills shortage as an outsourcing firm will have specialist skills
readily available.

 Professional firms can be employed on a flexible basis, i.e. on an individual
engagement basis rather than full time employment which may prove more cost
effective.

 Costs of employing permanent staff are avoided.

 The risk of staff turnover is passed to the outsourcing firm.

 Professional firms are responsible for their activities and hold insurance.

 Greater focus on cost and efficiency of the internal audit work as this will affect
profitability.

 Access to new market place technologies, e.g. audit methodology software
without associated costs.

 Reduced management time in administering an in-house department.

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