Internal Audit System and resources

Internal Audit System and resources:

the main objective of the internal auditors is to "CHECK DAY TO DAY CONTROL" 


For many reasons including independence  problem internal auditor is recruited by Board of directors (BOD). after the solution of Independence problem the new issue arise is familiarity . To solve this problem of familiarity a technique is used called "Outsourcing"

Hierarchy of Internal Audit Dept.           


                                                                 BIG         MEDIUM       SMALL                 
Internal Audit Manager                            1                 1                      1


Assist. Internal Audit Manager                2                 1                      -


Internal Audit Officer                                4                 2                    1-2


Internal Audit Assist. Officer                   10                4                    2-3


Outsourcing technique is so expensive so companies use "Hybrid Approach" i.e. "some hire by yourself and some trained internally " The upper portion of hierarchy like managers and assistant managers are out sourced while juniors and internal audit officers are in-sourced