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Internalization versus externalization of the internal audit function

This is a research report on Internalization versus externalization of the internal audit function uploaded by Jasmine Pvk in category: All Documents »  Accounts »  Advance Accounting section of our research repository.
633 views, 0 comments, Last Update: Feb 8, 2016.
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Tags: Internal Audit , public accounting
Description:
This paper examines the recent trend towards the outsourcing of internal audit services to the public accounting
profession. Here we draw from two dominant literature perspectives (the sociology of professions literature and the
outsourcing literature) to examine this clash between the public accounting profession and the internal auditing profession
over the provision of internal audit services. Two major research propositions are postulated from which to
consider these issues. These propositions concern themselves with the efforts of both the public accounting profession
and the internal audit profession in this outsourcing debate. We examine these professions both in terms of volitional
professional behavior (as espoused in the sociology of professions literature) and organizational arguments (inherent
advantages and disadvantages of the externalization of work as typically espoused by the outsourcing literature).



 

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