Outsourcing of Internal Audit
ITRODUCTION
While the world of trading expands all through the time, and the competence in the various industries increased as well, all organizations try to do their best to achieve their objectives and to satisfy their customers. Here arises the role of internal auditing which is to assist management to maximizing the opportunities and to minimizing the threats to the organization. Internal auditing must maximize the assurance provided to the board, the audit committee and the management, and contribute to the continuous improvement strategies for the organization. So, how to maintain good internal auditing function within the organization? Outsourcing of internal audit function is one of the solutions. So, what is internal auditing? What is outsourcing of internal audit function? How could outsourcing of internal audit function help the role of internal auditing? All these questions and other which could be arise will be answered in this report.
I. INTERNAL AUDITING
a. What is Internal Auditing?
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. (7,page1-2)
b. How Does Internal Auditing Help Organizations to Achieve Their Objectives?
An organization's objectives define what the organization wants to achieve, and its ongoing success depends on the accomplishment of its objectives. At the highest level these objectives are reflected in the organization's mission and vision statements. There is no single right way to categorize business objectives; therefore the categorization of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in
While the world of trading expands all through the time, and the competence in the various industries increased as well, all organizations try to do their best to achieve their objectives and to satisfy their customers. Here arises the role of internal auditing which is to assist management to maximizing the opportunities and to minimizing the threats to the organization. Internal auditing must maximize the assurance provided to the board, the audit committee and the management, and contribute to the continuous improvement strategies for the organization. So, how to maintain good internal auditing function within the organization? Outsourcing of internal audit function is one of the solutions. So, what is internal auditing? What is outsourcing of internal audit function? How could outsourcing of internal audit function help the role of internal auditing? All these questions and other which could be arise will be answered in this report.
I. INTERNAL AUDITING
a. What is Internal Auditing?
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. (7,page1-2)
b. How Does Internal Auditing Help Organizations to Achieve Their Objectives?
An organization's objectives define what the organization wants to achieve, and its ongoing success depends on the accomplishment of its objectives. At the highest level these objectives are reflected in the organization's mission and vision statements. There is no single right way to categorize business objectives; therefore the categorization of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in