Outsourcing Internal Audit
HIT THE GROUND RUNNING IN GERMANY – OUTSOURCING INTERNAL AUDIT to Germany
A powerful internal audit must actually afford all medium-sized companies from a certain size. For capital market-oriented companies, the German Accounting Law requires management boards and supervisory boards to set up such an independent internal audit. In addition, the critical view of internal auditing helps to uncover weaknesses and optimize processes. We offer outsourcing internal audit solutions for internal auditing. For the establishment of a functioning internal audit, we assume the following tasks:
- Order as internal audit
- As internal auditing, we monitor compliance with the rules on proper business organization and other statutory requirements.
- As an internal audit, we advise and inform the management regarding existing deficiencies and identified organizational gaps.
- Selected processes are checked randomly, risk-oriented and at appropriate intervals for their conformity.
- As internal audit, we assume our tasks without instructions and with the necessary specialist knowledge. We report directly to the management.
Which advantages does an external service provider offer?
One of the key requirements for internal audit staff is their independence. They examine on behalf of the management, who then reports the results to the Supervisory Board. This means that internal auditing must therefore be above all company-internal political and strategic considerations.
The establishment of an independent audit also means that these employees must not be entrusted with any tasks that are not related to auditing. Such an exemption of employees often fails in practice because of the necessary full utilization of the employees and / or the available resources.
Can an external service provider go as far as the in-house internal audit?
In many cases, the company chooses a mix of its own internal audit and external specialists. We also call this kind of cooperation with our clients co-sourcing. Special audit procedures can then be outsourced cost-effectively to external specialists.
The internal audit can then concentrate fully on the basic tasks. Specialized knowledge, which is not needed every year, can then be purposefully “bought in” from the outside. If you then set the costs for co-sourcing models or even for special orders in relation to the structure of your own audit capacity, it is worth outsourcing the internal audit in most cases.