Outsourcing and co-sourcing
internal audit functions
advisory
Changing stakeholder expectations and Leveraging our resources to
a new view of risk management are help you compete
prompting an important shift in the role Wholly outsourcing or co-sourcing
of internal audit in many organisations. critical elements of an internal audit
New demands from the board, senior function can help an organisation
organisational leaders, and regulators reduce costs, free up capital, and
are requiring internal audit groups to enhance its ability to focus on its core
continue refocusing their efforts. competencies. It can also provide
an opportunity to tap into specific What’s more, as responsibilities have
skill sets, better practices, industry expanded the need for enhanced
and corporate audit knowledge, and rigour and transparency and a
geographically dispersed resources.consolidated view of risk management
has become paramount. KPMG can augment your
organisation’s internal audit staff Many leaders have recognised the
and broaden its capabilities by, for need for internal audit to play a larger
example, helping to execute internal role – one that expands its historic
audit programs.focus on value preservation (a controls
focus) to encompass activities related Our professionals can also support
to value creation (a performance focus). ongoing monitoring, compliance
maintenance, and control Such a shift could enable internal audit
transformation efforts to help improve to bring value to the business in new
the business effectiveness of your ways – its existing organisation-wide
internal audit function.perspective and mandate, and its
access to all areas of the business, KPMG may accomplish these in less
personnel, and resources, uniquely time and for significantly less money
positions it to expand its role. Internal than it would take for an organisation
audit has become a prime target for to hire, develop and carry needed
use in strategic sourcing, risk resources internally.
management and quality assessment
services. Potential benefits of
outsourcingKPMG can help make the best use of
When reviewing the outsourcing your organisation’s internal audit
option, consider that your organisation function. Our professionals are trained
can: to help you do this in line with the
organisation’s strategic, business, and • Gain access to highly skilled and
process goals; with shareholder experienced professionals and
expectations; and with the audit leading technology
committee’s and management’s goals
• Attain significantly more value from regarding governance, risk and
the function while holding down controls.
costs
• Obtain a fresh perspective and an
added level of scrutiny
© 2008 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss
cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Liability limited by a scheme approved under
Professional Standards Legislation.kpmg.com.au
• Eliminate direct internal audit training KPMG: delivering the right Contact us
and recruiting costs For more information about how our resources
Internal Audit Services can help your The basis of our approach to delivering • Enjoy greater staffing flexibility, organisation, please contact:an effective outsourced or co-sourced especially as special projects arise.
internal audit function is to view
it using a wider lens that looks at Potential benefits of co- Sally Freeman
your entire business and places the sourcing Partner in Charge
function in the context of your whole Through co-sourcing, KPMG’s + 61 3 9288 5389
organisation.professionals can supplement your sallyfreeman@kpmg.com.au
internal audit staff, manage specific Using a multidisciplinary team
areas of your internal audit program, Michael Hillstructure, we assign financial and
launch projects, and help improve the Service Line Leader – Sourcing operational auditors, IT auditors, and
effectiveness of your internal audit Internal Auditsubject matter resources, as needs are
function. + 61 3 9288 5589identified in the risk assessment and
mwhill@kpmg.com.auaudit plan.For example, leveraging KPMG can
help you: To help ensure that you have the
right resources, we select KPMG Convert fixed costs to variable costs
professionals who:Shifting internal audit costs – including
staffing, training, and infrastructure – to • Know your industry and the types of
a third-party provider can help reduce risks and issues you face
the fixed costs of an in-house audit
capability. Cost savings can be • Can provide the right skills and
significant for companies in which experience at the right time,
internal audit activity tends to regardless of location
experience “peaks and valleys.”
• Are skilled in such key areas as
forensics, supply chain management, Extend the reach of your staff
regulatory compliance, financial risk Many organisations that have engaged
management, IT, or industry-specific co-sourcing arrangements recognised
process reviews, depending on your that their internal audit projects were
requirements.sometimes constrained by a lack of
concentrated knowledge or insufficient
staff in certain geographies. KPMG’s
multidisciplinary staffing approach can
help on both counts.
Leverage effective knowledge
sharing and thought leadership
KPMG has established strong internal
and client-centric knowledge sharing
and training programs that your internal
auditors may leverage to gain broader
perspectives and to exchange better
practice ideas with those who have
addressed similar challenges.
© 2008 KPMG, an Australian partnership
and a member firm of the KPMG network
of independent member firms affiliated with
KPMG International, a Swiss cooperative.
All rights reserved. Printed in Australia.
KPMG and the KPMG logo are registered
trademarks of KPMG International.
Liability limited by a scheme approved under
Professional Standards Legislation.
March 2008. VICN00846AUD.