Internal Audit Co-Sourcing Services
Co-Sourcing of some internal functions in a company is a way for a company to retain control while cutting on the costs and maximizing internal audit capabilities. Co-sourcing of the arrangements with the outside vendors permits the in-house auditors to maintain responsibility for the internal audit process. It helps in relying on an outside organization for specialized technical skills and personnel. Hence, in contrast, a company that co-sources its internal audit function improves its capability and enhances the internal audit quality.
Co-sourcing has also helped many companies that lack the staff capability to deploy on new systems. For instance, by way of co-sourcing, a company can consolidate e-mail and establish electronic data interchange systems.
Co-sourcing permits a company to receive maximum value from the internal audit function. It tries to save on long-term investment in staff. Through co-sourcing, a company can have flexibility and control, because projects can be planned as well as executed without adding more staff.
Internal Audit Co-Sourcing is well suited to a company that is experiencing a rapid strategic expansion into the global markets. By way of internal audit co-sourcing, the entities can diversify into various business lines, each focused on the market position specializing expertise.
What is Internal Audit Co-Sourcing?
Even the most valued organizations that are versatile in all areas are bound to have some gaps in expertise and resource. Some solution-oriented leaders of the company appreciate and embrace the concept of supplementing resources in many creative ways. Some of the methods include internal audit co-sourcing that serves a partnership between the internal audit employees and the externally hired professional service firms.
Internal audit co-sourcing allows your company to monitor the key risk areas within the organization that provide higher assurance levels to the board that the risk areas are being monitored effectively and objectively. In any case, by choosing the right firm and model to address the internal audit issue is a complex decision.
What are the Other Available Options Other than Internal Audit Co-sourcing Agreements?
The tireless efforts of an organization to deliver high-quality products or services for the clients while maintaining the budget with the profit margin in mind needs a lot of efforts. The organization might have enacted or are considering enacting an internal audit co-sourcing agreement to meet the firm's requirements with specialized auditing needs. This is done without looking that your budget is moving out of control.
In case you are new to sourcing, you must be clear about the types of sourcing arrangements that are available and the internal audit co-sourcing, to rule out other options. It is essential to consider your requirement precisely, and what kind of agreement shall work best for the internal audit function you need to fill your organization:
- In-House: There is an internal audit department in every company.
- Outsourced: In outsourcing, an internal audit service provider or an independent firm or organization is hired to conduct a specific internal audit function.
- Internal Audit Co-Sourcing: The audit in internal audit co-sourcing is generally carried out in partnership with the company’s in-house internal audit department and an externally hired internal audit service provider. Internal audit co-sourcing means the internal audit department can work with the trusted internal auditing firm.
An increasing number of businesses are using the internal audit co-sourcing professional firms to close the gaps and meet internal auditing requirements.
What are the Benefits of the Internal Audit Co-Sourcing Firms?
An internal audit's primary need is finding an individual with expertise or professionals with minimum expertise to supplement your skilled in-house internal audit team. It can help you to consider the additional benefits you can anticipate from working with the external contractors.
Some of the benefits for your firm to go for internal audit co-sourcing are as follows:
Improve Your Business’s Operations
Hiring a professional or a team of professionals in internal auditing can help complete the specific project in the given time frame. Still, these professionals can also have a good and lasting impression on the internal audit team. By way of working with an assured firm that offers an organized and streamlined approach, the in-house team can adopt specific methods and philosophies to help in staying on point daily. The entire process will help in better ongoing efficiency and easier preparation for future internal audits.
Relieve Your Internal Audit Staff
Audits often fall around the holiday season when the key team members have scheduled another plan away from the office. Hence the internal audit co-sourcing can work as an ideal situation for everyone. Whether you want to conduct an annual audit or new business activity, or financial year-end closing of books, internal audit co-sourcing can work as a lifesaver.
Access Highly Specialized Knowledge
Sometimes hiring an auditing professional who can spend the necessary time on laws, regulations, and rules can be out of budget for you to impact your results. Your internal audit co-sourcing firm features the various specialized auditing experts with specific and essential knowledge.
Some of your auditing functions and cycles require more output from your auditing team compared to others. When you have a professional auditing firm like Enterslice in your contact list, you can reach out at any time for temporary expert assistance whenever you need more hands-on the deck. It will also help you save money while keeping the work in-house for the lighter or less complicated projects.
Gain Objective and Independent Insights
It becomes quite easy for an internal audit team to become complacent in their tasks due to their familiarity with the work product. By way of internal audit co-sourcing, you can bring fresh knowledge with a fresh perspective, with the expertise to make recommendations when noting the inconsistencies and other issues.
Check the Risk Assessment Components
Since the auditing tasks are generally performed at the higher executive levels, an outside professional with the risk assessment skills can examine operational, financial, and industry risks outside the organization. They will help you in determining how the risks will impact your business by giving the internal audit information in hand.
Factors to be Checked while Hiring an Internal Audit Co-Sourcing Firm
If you are planning to hire a third-party internal audit co-sourcing professional, the below-mentioned points might help you look at the key considerations and co-sourcing expectations to help you get started:
- The third-party must work as per the professional standards of your firm.
- Maintains the institutional knowledge for future projects and assignments for avoiding back-tracking.
- Has a clear understanding of the culture of the organization and works with the internal audit team.
- Provides advisory services to the audit committees and senior management.
- Covers all the locations, including the remote ones.
- Stays in good standing with the proper required memberships and certifications in the specified professional organizations.
- Provides advice to the internal auditing team to develop better internal audit function practices to streamline the processes and improve its accuracy.
- Extends the specific industry knowledge to the in-house audit staff by way of scheduled training sessions and on a one to one basis or individually.
- Assists the internal auditing team as a means to provide internal promotions for valuable organizational team members.
- Retains the expected knowledge base of the concerned organization for all the possible engagements.
What are the Key Attributes of the Internal Audit Co-Sourcing Firms?
By working with a co-sourced provider, you can supplement your in-house team. This team will enable you to access the skills and experience required. They can also help you reach your aspirations through each of the attributes mentioned below, bringing a broader industry and internal audit profession insights and expertise.
- You will have an internal audit function that will focus on current and emerging risks.
- You will always have access to individuals with the required skills to deliver credible and relevant assurance.
- The received internal audit function is efficient and cost-effective. The flexibility model attached to the function provides you pay only for the skills required, eliminating recruitment and training and employment costs of specialist resources that can be challenging for an in-house team to sustain.
- You can directly access your co-sourced provider's tools and work plans as they are in active use. Whenever necessary, you can develop solutions and audit programs together.
- The person who heads the internal audit is supported in building the profile and credibility of the organization's internal audit functions.
- You are provided with relevant service and valuable insights by the experts with proper experience. They will advise a wide range of businesses facing similar issues with access to extensive knowledge and networks inside and outside the internal audit profession.
- You will also agree on the mechanisms for evaluating and measuring the execution, quality, engagement, and insight into your co-sourced partnership.
How can Enterslice Provide You Internal Audit Co-Sourcing Services?
Enterslice can help you in providing internal audit co-sourcing services in the following ways:
- Evaluate if internal audit co-sourcing is better for you.
- Create the case for change to the shareholders.
- Support you throughout the transition to a co-sourced function, managing your concerns sensitively as per your in-house internal audit staff.
- Provide an internal audit co-sourcing function that is designed according to your needs. We fix our way of working to fit as per the company's requirements by sharing our complete knowledge of experience in your industry and the internal audit profession.
- We have a multi-competent global team that can be mobilized whenever you need them.
- We will work as an experienced partner who will act as a sounding board to lead your internal audit. We will also provide a constructive challenge and try to bring innovative ideas and value-seeking initiatives, from the extended network.
- Our team will also focus on the objective perspective, market experience, and seniority as per the need to support in leading your internal audit function. We will also provide you a broader and comparative view of the performance of internal audit function.
- Our professionals will bring you a fresh and unique thought with broader business insight that will extend beyond the traditional focus and controls.
- We have access to the latest thinking and market insights by way of complete leadership skills offering specialism in the industry and perspectives related to governance.
- We have a variable cost model that will assist you in completing your work within your specified budget. You will only have to pay for the skills and experience for the resources you need.
- Our experts working as your auditing partners can effectively transfer the knowledge and skills by providing a range of tailored development opportunities as per your requirements.