Question

Advantages of ''in- source'' in internal audit, give example on each advantage (please use your own words)

Answer 1

An in-house internal audit function needs to be developed according to the size and complexity of the organisation. Setting up an in-house internal audit function requires a significant level of initial investment & also continuing investment in skilled resources, methods, training and other infrastructure.

Some of the Advantages of In-source In Internal Audit are :-

1.Ownership-The in-house staff has total ownership of the assurance function. Thus, responsibility and accountability can be clearly established as they are directly reporting to the management.

2.Common Understanding- The processes within the organization are better understood by the in house internal audit staff as compared to the outsiders. They can understand the criticality and the genuine issues if any in any process.

3. Cost Effective- Setting up an in-house audit function will be more cost effective as compared to outsourcing. So in this way some cost for the company can be saved.

4. Expertise- Since the management is aware of the skills & expertise of its employees therefore the audit team can be selected by the committee on the basis of the team expertise and skills therefore increasing the competence & performance of the audit team.