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Chapter 19

Outsourcing and internal audit

Outcome

By the end of this session you should be able to:

 evaluate the potential impact of an internal audit department on the planning
and performance of the external audit

 explain the benefits and potential drawbacks of outsourcing internal audit

 consider the ethical implications of the external auditor providing an internal
audit service to a client

 explain the different approaches to ‘outsourcing’ and compare with ‘insourcing’

 discuss and conclude on the advantages and disadvantages of outsourcing
finance and accounting functions

and answer questions relating to these areas.

The underpinning detail for this chapter in your Integrated Workbook can
be found in Chapter 19 of your Study Text

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