Potential benefits of outsourcing internal audit services

 Affordability as there should be a cost benefit (budget savings) of replacing fixed

cost (full-time employees) with a variable cost service.

 Further, if reliance on internal audit by the external auditors is substantially

increased, the external audit fee may be reduced.

 Even if there are some changes in staff within the audit firm providing the internal
audit services, there should be greater continuity than currently

 A wider range of industry-related expertise might be available to the organisation

from contracted-in auditors that would be too expensive to maintain internally.
This may be particularly beneficial for ad hoc needs such as due diligence reviews
for acquisitions or business continuity plans in the event of fire or flood.

 Experienced internal auditors will be available as and when needed . Outsourcing

also offers flexibility provide more staff at busy times.

 Outsourcing to an audit firm can provide geographic coverage and more advanced
technology.

 Better recommendations for improvements as the audit firm can suggest practical,
tried and tested solutions and not just theoretical ones.

 Better utilisation of core competencies, for example, management will have more
time to focus on strategic objectives
 The audit firm may provide a customer-focused service that could be lacking in
an in-house department.