http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/ Blogen-us Wed, 01 Aug 2012 09:47:18 AMWed, 01 Aug 2012 09:47:18 AM http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2010-01-16My suggestion is that Stewart should talk to the audit comitte regarding it. http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2009-12-17Outsourcing the internal audit should be the function of the audit committee if the principles of Corporate Governance are to be entrenched. http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2009-12-10Stewart shall inform the CFO and COO that the decision on the quality of work, man power of internal audit department are the decision of the audit committee based on the Code on Corporate Governance. The management does not have the right to decide before the board and the management proposal shall be presented to the audit committee on the next meeting. He may suggest to the CFO & COO that outsourcing internal audit may not be a cost savings method as his department is now equiped with experienced and qualified personnel who have been working long hours to fulfill the audit plan. Meanwhile, Stewart take into consideration in his audit planning that the decision by the CFO & COO may indicate possible attempt to hide or avoid the current audit team from discovering certain sensitive issues. http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2009-11-13Stewart needs to know that the behaviour of CFO and COO indicates a red flag for fraud. He should discuss the matter with the Audit Committee and try to escalate it. http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2009-11-10One of the most critical IA question is “How Internal Audit culture should be enhanced" As CFO and COO are not recognizing IA role and authority, misappropriate thoughts could be laid out. Accordingly, IA role, authority and responsibilities should be dispatch to all related party clearly. In such case only the Audit Committee should be decide quality level of IA http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2009-08-24During the past 18 months, the audit shop does not appear to have raised awareness regarding responsibilities of internal audit and what is needed to fulfil those responsibilities, which led to COO and CFO attempting to decide on matters that belong primarily to the CAE and the Audit Committee http://www.theiia.org/intAuditor/ask-the-experts/2009/blindsided-by-outsourcing/2009-08-12The COO and CFO are wrong! Internal Audit's independence requires that it report to direct to the Board via the Audit Committee. If Stewart needs additional manpower to fulfill his fudiciary responsibilities, he and the Audit Committee should decide how to best provide the additional staff.