Page 253 - Microsoft Word - 00 P1 IW Prelims.docx

Outsourcing and internal audit

Outsourcing

1.1 Definitions

Outsourcing is the practice of contracting out business functions or
processes to an external service provider.

Insourcing is where a business performs functions and processes
internally. This allows the company to maintain control of the function
which is important if it is a core area of the business.

1.2 Examples of outsourced functions

 Internal auditing

 Data processing

 Pensions

 Information technology

 Due diligence

 Tax management

249