Outsourcing the internal audit function : the case for and against

Abstract

Internal Auditing (IA) is fast becoming a professional practice required to ensure an effective profitable business. Malta is a country where the importance of an IA function still needs to be evaluated. Consequently preliminary interviews with a number of Maltese practising accountants regarding the prevailing situation in Malta led to the idea of an assessment of the present situation and an exploration of the possibility of developing a methodological study of different approaches to the application of such a function. It is the objective of this study to consider the pros and cons of outsourcing the IA function within local companies. The study will therefore attempt to identify the factors, both positive and negative, that could lead to or prevent such a decision.