18 Jul, 2023
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As we have entered a very busy time in the Internal Audit / SOX Compliance world, consider Outsourcing of these important functions.
Outsourcing the Internal audit/ SOX Compliance function can offer several benefits to organizations. Here are some potential advantages:
Outsourcing the internal audit function can be more cost-effective compared to maintaining an in-house team. Organizations can save on expenses related to salaries, benefits, training, infrastructure, and ongoing professional development for internal auditors. Additionally, outsourcing allows for flexibility in scaling the audit function based on the organization’s needs, avoiding unnecessary costs during periods of low audit activity.
External audit firms often have a diverse team of professionals with specialized skills and knowledge in various industries and audit methodologies. By outsourcing, organizations can tap into this expertise, ensuring that audits are conducted by experienced professionals who possess the necessary skills and understanding of best practices in the field.
External auditors bring an unbiased and independent viewpoint to the organization’s internal audit function. They are not influenced by internal politics or conflicts of interest, which can enhance the integrity and objectivity of the audit process. This impartiality allows for a more thorough evaluation of controls, risks, and compliance issues within the organization.
External audit firms are often well-versed in efficient audit techniques and possess standardized processes that can improve the overall efficiency of the internal audit function. They may utilize advanced data analytics tools and technologies to streamline the audit process, identify patterns, and detect anomalies more effectively. This can result in faster audit cycles, reduced disruption to ongoing operations, and timely reporting.
By outsourcing the internal audit function, organizations can allocate more time and resources to their core business activities. It allows management to concentrate on strategic priorities, operational improvements, and risk management, while relying on external experts to handle the audit function. This can lead to better utilization of internal resources and a more focused approach to achieving organizational goals.
External audit firms are often well-versed in the latest regulatory and industry standards. By outsourcing the internal audit function, organizations can ensure compliance with relevant laws, regulations, and reporting requirements. This helps mitigate legal and regulatory risks and enhances the organization’s reputation.
Outsourcing provides flexibility in adjusting the scale and scope of the internal audit function based on the organization’s evolving needs. During periods of expansion, acquisitions, or other significant changes, external auditors can quickly ramp up their efforts to accommodate increased audit demands. Conversely, during quieter periods, organizations can reduce the outsourcing arrangement, thereby optimizing costs.
While outsourcing the internal audit function offers several advantages, organizations should carefully consider their specific requirements, risks, and compliance needs before making a decision. It is important to select a reputable and reliable external audit firm and establish clear communication channels to ensure a successful outsourcing arrangement.
Would you like to learn about outsourced Internal Audit Services and the approach that Horizon Advisors has employed with our clients? Please reach out to us at info@horizonadvisors.com or call (323) 810-0816 to arrange a time to speak with one of our advisors.
