Internal Audit Full Outsourcing
Whether you are looking to accelerate the establishment of an Internal Audit function or realize cost savings by moving to an outsourced model, IRSL can provide your organization with a complete outsourced solution to get results fast. We follow practices suggested by the Institute of Internal Auditors (IIA) and are adept at preparing annual enterprise risk assessments; planning and scheduling audits; performing audits and reporting audit results; and presenting findings to Executive Management and Audit Committees. We have the breadth and depth of skilled Internal Audit professionals to meet the needs of most organizations.
Internal Audit Outsource Methodology
When outsourcing an organization’s internal audit function we typically begin with an Enterprise Risk Assessment (ERA). This includes:
- Determining key operational, regulatory and financial reporting risks;
- Evaluating, at a high level, current risk management processes; and
- Preparing a report of key risk areas to be audited in the future, including those that may improve efficiency, reduce exposure to fraud and errors, and improve accuracy and completeness of financial information.
Our ERA methodology incorporates a sequential phased approach. However, in some instance we can incorporate certain tasks that have already been performed to accelerate our process through the remaining phases.
Once the risk assessment has been completed and the report delivered to Executive Management and the Audit Committee, IRSL will prepare individual Statements Of Work (SOWs) for audits based on the findings and levels of risk that can be executed in the future.
Key Advantages of Outsourcing an Internal Audit Department
- Cost Savings: Companies can realize up to 50% savings using the IRSL Outsourcing Model.
- Flexible Budgets: Total cost of compliance can vary from year to year based on needs, whereas an internal audit department operates as a fixed cost.
- Access to Talent: Audit skills and resources can be effectively matched to audit requirements by using specialists in technology, forensics, accounting and other areas where applicable.
- Manage the Peaks: Internal departments would need a higher level of fixed staff to manage the peak levels encountered during the year, whereas an outsourced model brings resources only when needed to meet the peaks of the audit cycle and moves them elsewhere during off-peak periods.
- Focused Effort: Outsourced resources try to avoid miscellaneous office distractions, arriving late and leaving early, running errands during the workday, and attending general office meetings, as this time cannot be charged to a project.
- Sharing Best Practices: Using an outsourcing or co-sourcing provider allows access to more information, experiences and best practices from not only your industry.
in addition to the above advantages, our internal audit services provide the following benefits:
- Assurance to external parties and compliance with applicable laws and regulations
- A completely independent process, and information technology (IT) internal audit sourcing capabilities that use industry leading practices
- Deep technical and analytical skills related to core process and related control assessments
- Elimination of time and cost associated with sourcing, hiring, training and retaining skilled personnel in noncore competency areas
- Management’s ability to focus on more strategic initiatives for business growth and improving resource utilization