Hi, I'm Allyson Edwards from AdviseUp Consulting, and welcome to The Bottom Line.

Did you know that roughly 60% of internal audit functions are now leveraging outside help due to recruiting challenges?

Building an internal audit team from scratch is expensive and difficult to accomplish, which means more and more companies are looking to external support to help. So, when you look externally, which model is right for your organization: Outsourcing, or Co-sourcing?

Let’s break it down.

Outsourcing is a fantastic "starter kit" for smaller companies or organizations just beginning their Internal Audit journey. You outsource the administration to an external provider and gain immediate access to specialized tech skills. The downside? It can be the most expensive option, and external teams sometimes face resistance from your internal staff.

Co-sourcing, on the other hand, blends your existing internal resources with a third-party provider. It offers incredible flexibility and scalability. It allows you to augment your team with niche technical expertise exactly when you need it, providing fresh, independent insights directly to your audit committee.

When you are ready to select a partner, you have choices. Large, Big 4 firms have strong reputations, but they can be pricey, have high turnover, and often staff your project with junior associates.

Smaller, specialized firms offer a great alternative. They are agile, provide direct partnership with senior staff, and make you a true priority without the huge margins.

Whichever route you choose, the golden rule is this: Look for experienced internal auditors, not external ones.The internal audit mindset is what will help you improve your business from the inside out.