Sourcing for the internal audit function

FOR such a critical function, internal audit is too often regarded as simply a box to tick on management's list of operational things to do. In actuality, the Singapore Code of Corporate Governance requires companies to establish an effective internal audit function that is adequately resourced and independent of the activities it audits (Principle 13). A more pressing call is how a company should approach its internal audit options to best fit its corporate structure and requirements. Essentially, there are three primary options: in-house, outsourced, or co-sourced.

In-house

In-house internal audits rely solely on company resources, staff and expertise.