The pros (and a few cons) of hiring independent business auditors
I recently read an article on the disadvantages of hiring an
independent auditor, and was surprised that the article didn’t mention
the advantages external resources can provide.
The article I read (at chron dot com) talked about disadvantages such as an independent auditor taking time to get up to speed on the business; the cost of an independent auditor being higher than salaries of internal audit functions; the time it takes to find the right person for the work; and fears around confidentiality.
I wouldn’t necessarily argue that these are legitimate concerns. But, I would offer the following advantages in using independent business audit resources in your audit plan:
1.) While it may take a little time for the external auditor to get up to speed on your company, it is that very process, as the objective external auditor learns the workings of your business, that enables the auditor to see opportunities, risks, and solutions that may not be as easily viewed by people closer to your company.
2.) Independent auditors are an excellent addition to an already effective internal team, offering perspective and business input that represents added value.
3.) Your business Strategic Plan often calls for resources not readily available in your company and/or needed only for limited periods, pre-empting hiring more employees. An independent auditor can fill that gap for you.
4.) Professional auditors take confidentiality seriously, and help to ensure that proper agreements are in place both internally and externally as part of the audit process.
5.) Independent business auditors are trained in partnering with your business, internal auditing team and you to reach your business goals.
6.) When you’re “in” your business, it is easy to get bogged down in the day-to-day details, human resource management and other challenges. An independent business auditor offers perspective and helps you to realize your bigger vision.