Sourcing Forms

Does an internal audit always have to be organized "internally"?

No!

The setting up of an in-house audit department is not necessarily required to ascertain an appropriate audit function. According to the IIA standards, different degrees of external support up to a complete outsourcing are allowed. Each sourcing form has its specific advantages and disadvantages: While the benefits of an in-house solution are the greater familiarity between the auditors and the company, and also the advantages as a tool of management development, outsourcing distinguishes itself through the following advantages:

•   Substantial neutrality / objectivity
•   Greater professionalism
•   Availability of experienced specialists / experts
•   Avoidance of fixed costs and risks of idle time costs
•   More flexible organization of the audit function

Possible disadvantages, such as an excessive dependence of an external service, can be reduced through precise guidelines for documentation and auditing standards.