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Dear tutor,
could you please help me with the following question? Why consideration No.2 is allocated to outsourcing?If SGCC’s Board decides to establish an internal audit department they will also need to decide whether they will employ members of staff or outsource the department to an external firm. You have drawn up a list of considerations relating to this:
(1) Specialist industry skills
(2) Resistance from current staff
(3) More cost effective service
(4) Good understanding of SGCC’s systems and operations
Which of the following options correctly allocates the above considerations to the relevant internal auditor?Answer:
Employed:4
outsourced: 1,2 and 3I would have said:
Employed: 1(?), 2, 4
Outsourced 3(1) is a bit ambiguous. Does it mean specialist skills in internal auditing or specialist skills in the type of business being carried on? If the former it would be allocated to outsourced.
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