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Discuss the case for and against outsourcing the internal and it function of an entity.

      

Discuss the case for and against outsourcing the internal and it function of an entity.

  

Answers


Kavungya
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


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