ACCA Strategic Professional · Strategic Business Leader · Audit and compliance
Dunmore Energy is comparing an in-house internal audit department with outsourcing. Which factor most clearly favours keeping the function in-house?
Deep, continuous knowledge of the organisation and ready availability favour an in-house function. Outsourcing's advantages instead include flexible costs, access to rare specialist skills and an external perspective on best practice.
- ANeed for deep, continuous knowledge of the company's culture, systems and risks, with audit staff available for ad hoc requestsCorrect
- BWish to avoid fixed employment costs in periods of low activity
- CRequirement for rare specialist skills used only occasionally
- DDesire for fresh external perspective on best practice
Explanation
In-house teams build accumulated organisational knowledge and are readily available, which suits continuous monitoring. The other options are typical advantages of outsourcing: flexible cost, access to specialists and external perspective.
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