Outsourcing of internal auditing services and performance of organisations in Nigeria: A Conceptual Approach.
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Date
2020-06-30
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Management and Social Sciences, Ibrahim Badamasi University, Lapai.
Abstract
The spate of corporate collapses and financial scandals has resulted in an increased focus on
internal auditing as an important consideration for organisations. The basic role of internal
auditing is to help management achieve company goals. It also provides assurance that
management has implemented a satisfactory internal control system to prevent risks. It is
observed that sourcing of internal audit services internally always leads to lack of independence
by the staffs that provide these services since they are employees of the entity and under the
control of management. In addition to that, the external auditors find it difficult to place
reliance on the work performed by internal auditor. This study examines outsourcing of internal
audit functions and performance of organisations in Nigeria by reviewing some selected studies
from within and outside Nigeria. The objective of the study is to conduct a conceptual review (to
determine how outsourcing of internal audit function affects performance of organisations in
Nigeria based on the findings) of previous studies. This paper discovered from previous studies
that outsourcing of internal audit functions is the remedy to efficiency, cost savings and
reliability of internal audit services in every organisation. This study is of the opinion that more
researches should be conducted on the topic in Nigeria and that organisations in Nigeria
should key into outsourcing of their internal audit functions as this brings about cost saving,
reliability of record as well as independence of opinion
Description
A conceptual paper that describes how outsourcing of internal audit function can improve firm performance
Keywords
Citation
8. Lawal, O. L., Lawal, T. and Oluganna E. (2020): Outsourcing of internal auditing services and performance of organisations in Nigeria: A Conceptual Approach. Lapai International Journal of Management and Social Sciences, 12 (1): 70-79