posted 19 March 2001 02:26 PM               

quote:

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Originally posted by selle:
what are the main factors that lead to the decision of outsourcing internal audit? what is its relevance in philippine settings?

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The three main factors that come to mind are cost, experience, and bias.

COST:
Depending on the size of your company it might be more cost effective to outsource. Ongoing training costs add up quickly and probably even costlier is the cost of peoples time in performing a good audit.

EXPERIENCE:
Do you have a staff that is capable of understanding the audit process? Do you have a high turnover rate? What is the level of management buy-in?

BIAS:
This is tough to overcome, internal auditors are usually experienced employees that have engrained relationships (good or bad) that might affect the outcome of the audit. Auditors might be biased without even knowing it.

I prefer a two tiered approach that consists of an internal audit system (reviewed by upper management) that is occasionally reviewed by an outside soure.

Hope this helps,

posted 19 March 2001 04:26 PM               

Barb

posted 19 March 2001 04:54 PM               

Could I get a copy also?

Thanks,

posted 19 March 2001 06:58 PM               

Also see https://elsmar.com/level2/4_17.html

These threads (and several others revealed in a forums search) address the outsourcing of internal audits question in some detail.