OUTSOURCING INTERNAL AUDIT: AN APPROACH FOR VIETNAMESE SMEs

Abstract

The internal audit function plays an increasingly important role for organizations
by evaluating internal controls, risk management processes and operational
performance of organizations to recommend improvement activities. This function,
which was traditionally performed within the organization, has gradually moved to
the outsourcing. This paper reviews published papers to find out the reasons for
outsourcing, outsourcing motives, disadvantages of outsourcing, outsourcers,
outsourcing service providers and factors affecting the outsourcing of internal audit.
From studying the boons or banes of outsourcing internal audit, the main
characteristics of small and medium enterprises, the role of internal audit, assessing
the current status of internal audit performance of surveyed Vietnamses small and
medium enterprises, the paper proposes outsourcing for Vietnamese small and
medium enterprises.