Outsourcing Internal Audit Services

Paper Summary:

The paper offers a brief overview of the trend in outsourcing internal auditing services and explores both the pros and the cons of outsourcing internal audit services by organizations. The paper first discusses the benefits of outsourcing the internal audit services that have enticed many companies looking to streamline their non-core business functions. The paper then looks at the drawbacks that include the challenge of mixed allegiance, the security of sensitive data and the concern that if cost-savings are reduced, competition in the industry will also be reduced.

Outline:
Introduction
Outsourcing Internal Audit Services Overview
Outsourcing Internal Audit Services Benefits
Outsourcing Internal Auditing Services Disadvantages
Conclusion

From the Paper:

"Despite the recent attention outsourcing has received, the concept itself is not new, not even for internal auditing. However, due to recent trends in the industry, outsourcing, including outsourcing the internal audit function, has become an increasingly utilized phenomenon. As Rittenberg, Moore and Covaleski note, outsourcing revenues grew from nearly zero to an estimated $120 billion in 2000. In fact, a report by Corbett noted that 85 percent of American organizations now purchase services that could be performed in-house (Carey, Subramaniam, Chua, and Ching)."

Sample of Sources Used:

• Carey, P., Subramaniam, N., Ching, K., & Chua, W. "Internal Audit Outsourcing in Australia." Accounting & Finance 46 (1) Mar 2006: pp. 20-24. Business Source Complete. EBSCOHost. University of Phoenix, Phoenix, AZ. April 7, 2008 <http://web.ebscohost.com>.
• Internal Audit Services: Adding True Value. No date. Deloitte Touche. April 7, 2008 <http://www.deloitte.com/dtt/cda/doc/content/Audit_interne.pdf>.
• Klosek, J. "Data Privacy and Security are a Significant Part of the Outsourcing Equation." Intellectual Property & Technology Law Journal 17 (6) Jun 2005: pp. 15-18. Business Source Complete. EBSCOHost. University of Phoenix, Phoenix, AZ. April 7, 2008 <http://web.ebscohost.com>.
• Rittenberg, L., Moore, W., & Covaleski, M. "The Outsourcing Phenomenon." Internal Auditor 56 (2) Apr 1999: pp. 42-46. MasterFILE Premier. EBSCOHost. University of Phoenix, Phoenix, AZ. April 7, 2008 <http://web.ebscohost.com>.
• Smith, G. "Enron's Lesson: Rebuild Internal Auditing Now!" Journal of Corporate Accounting & Finance 13 (4) May/June 2002: pp. 13-15. Business Source Complete. EBSCOHost. University of Phoenix, Phoenix, AZ. April 7, 2008 <http://web.ebscohost.com>.

More papers on Outsourcing Internal Audit Services:

• Term Paper # 96241 : "Internal Customer Service"
• Term Paper # 145191 : "The Internal Revenue Service"
• Essay # 71826 : "Internal Auditing"

APA Citation:

MLA Citation: