Benefits of a Internal Audit Solution from a Third Party
Any organisation is built on the trust of its consumers. Trust and transparency in an organisation are what make stakeholders and consumers attached to an organisation. Internal audits analyse the gaps with relevant standards and internal procedures, as well as drive continual improvement in an organisation. A correct implemented internal audit program is one of the best tools to make an organisation safer and more effective. It does not matter what size of your organisation has, or what industry you are in, Internal audits give you an insight into the performance of your organisation. Internal audits can be used to identify potential risks and action them prior to a large issue occurs. No matter how big and well establish any organisation is, it is bound to have some gaps as nobody is perfect. There are two ways to setup your internal audit program. The first one is to keep it In-house and the second one is having a third party provide an internal audit solution. Both types of internal audit solutions have pros and cons. In this article, we will review some of the main benefits by outsourcing your internal audits to a third party.
In a third-party internal audit, an independent internal audit service provider comes in and conduct the internal audits for an organisation according to the defined audit program.
Benefits of an Outsourced Internal Audit Solution
- Flexibility: Outsourcing an organisation’s internal audits provides flexibility. When using an external party to conduct the internal audits, they can be used when needed. This in an advantage compared to an in-house person, which typically is hired on a full-time basis. This gives an added flexibility to only use the resource when needed and also reduce the overall cost.
- Experience: With a third-party internal audit solution, you get experts who have audited a lot of companies and gained a large amount of experience from them. Additionally, third-party audit staff have gone through all the relevant training, examinations and practical tests. They have a wide range of information which is very costly and not effectively manageable in-house for many companies.
- Professional: Third-party auditors rely on their connection with their customers and it will affect them badly if they did not maintain the work quality. They work professionally and their judgment is based on data which is well analysed. When performing their task, it is auditor’s liability to understand the reliability of information received and they are bound to a strict code of ethics.
- A different perspective: In-house staff only works within its organisations working area, whereas a third-party works with many different organisations and industries. This provides a third-party auditor with a much broader perspective of things. Their experience gained from other companies and industries can often be very helpful. They will add a fresh perspective on things and question why thing is done in certain ways to drive further improvements.
- Unbiased decision: Third-party staff are impartial to the organisation they audit and is not affected by internal politics. An in-house audit team has the risk of gaining comfort with the way thing are done and risks related to impartiality increases when a company provide bonuses and incentives that are based on the company’s performance.
Above factors suggest that a third-party internal audit solution is better in terms of professionalism, unbiased decisions, and experience. No matter what internal audit solution you choose, the main aim of these audits is to add value to your organisation. With their experience and unbiased decisions, third-party auditors bring out the best of the organisations.
If you are considering to outsource your internal audit program, then feel to contact us for a free consultation with no obligations.