- 5 Marks
AA – Nov 2021 – L2 – Q1a – Internal Audit and its Relationship with External Audit
Explains two advantages and three disadvantages of outsourcing an internal audit function to an external company.
Question
Traditionally, internal audit work is undertaken mainly by in-house teams. However, in recent times many organizations outsource either completely or partially their internal audit function. Kofi Krakye, the Financial Controller of BHB Ltd, has advised management to consider outsourcing their internal audit function to FPP Ltd.
Required:
Explain TWO (2) advantages and THREE (3) disadvantages of outsourcing the internal audit function to FPP Ltd.
(5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Advantages, Conflict of Interest, Continuity, Cost, Disadvantages, External audit, Internal Audit, Outsourcing
- Level: Level 2
- Topic: Internal Audit and Its Relationship with External Audit
- Series: NOV 2021
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