Making The Decision To Outsource A Service Department: Who Should Deliver Internal Audit Services?

Abstract

The 2001-2003 wave of financial fraudulent reporting, aggressive earnings management, and overall management integrity issues highlight the important role that an internal audit function can have in protecting organizations and demonstrate how important it is that internal auditors operate with independence and objectivity. This paper highlights the issues organizations face when contemplating the internal audit outsourcing market. The illustrative materials provide exposure to the strategic, analytical, financial and operational decisions involved with retaining or outsourcing a corporate internal audit department.