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Case for:
• The professional firm is more independent than the staff of a traditional internal audit
department.
• The professional firm may have more highly qualified staff.
• Training is in the hands of experts.
• The professional firm is responsible for its activities, can be sued or carries insurance.
• The professional firm can be employed on a continuous basis or wherever it is required,
whereas a traditional audit department cannot easily be expanded or contracted.
• The professional firm has the ethical standards which characterize its professional body.
• The professional firm cannot be influenced or swayed by management.
• The flexibility and expertise of a professional firm can be more cost effective.
Case against;
• The professional firm cannot have the intimate knowledge and contacts which employees
will have
• The professional firm will be subject to its contract-but cannot be issued with instructions
in quite the same way as employees.
• Professional fees tend to be quite high.
• The professional firm might not understand the company and its industry fully
• There could be relationship problems where the professional firm is not readily accepted
by the employees of the company.
• It reduces the learning curve because of over-dependence on the professional firm.
• The professional firm may not be available when needed by the company.
Kavungya answered the question on May 14, 2019 at 12:16