What are the disadvantages of internal audit outsourcing?

The disadvantages of internal audit outsourcing mainly include the following points:

1. It's important to whom to outsource.

There are many accounting firms and consulting firms in China market, but the good and the bad are mixed. For which unit to outsource the internal audit work, enterprises should choose the most suitable partner according to their own needs and the level of remuneration paid.

However, in the process of selection, it may be impossible to inform the other party of their own needs in time because of poor communication, or the selected partners cannot meet the needs of enterprises because of improper selection criteria, which makes the internal audit work unable to achieve the goal of enterprise outsourcing for various reasons.

2. Outsiders are not as good as themselves.

There will be some problems after the internal audit outsourcing cooperation unit is determined. For enterprises, accounting firms or consulting companies that undertake internal audit outsourcing are "outsiders". Accounting firms or consulting firms are not as familiar with the operation of enterprises as their employees.

In this case, there will be various problems, such as the audit questions put forward by the outsourcing unit are inconsistent with the actual situation of the enterprise; Because I don't understand the long-term development plan of the enterprise, the audit opinions put forward cannot be implemented. In this way, the effect of internal audit outsourcing will be greatly reduced.

3. Enterprises may face security risks.

In order to let the unit undertaking internal audit know the enterprise's own situation more quickly and comprehensively, the enterprise can allow the unit contracting the work to obtain some internal information related to enterprise safety.

In this way, the safety risk index of enterprises will rise. Even if the contractor has a contract or agreement, if the contractor's confidentiality work is not in place, the information of the enterprise will be leaked, and the most serious damage is the enterprise itself.