Outsourced and co-sourced internal audit
Internal audit outsourcing and co-sourcing from a CPA firm
If you need more internal audit coverage than you can handle in-house, we scope the work, price it, and hand you both before you sign.
500+
Audit and attestation engagements
AICPA
Peer-reviewed firm
16+
Years auditing experience
What internal audit outsourcing means
You move the internal audit function, or part of it, to an outside firm. Your board, audit committee or owner keeps the function, decides what we examine and receives the results. We add capacity without taking those decisions away from you.
Some companies have no in-house function when a lender, investor or board asks for one. Others have a team too small for the approved plan. Others need a specialist to test a control area their own team cannot cover.
Three delivery models
Outsourcing, co-sourcing and keeping it in-house
Full outsourcing.
We run the function while you name an internal owner, approve the plan and receive the findings. Choose this model if your company has not filled the role.
Co-sourcing.
With a co-sourced internal audit, you keep the person who leads the function in-house. We handle the fieldwork, one control area or the months when your team cannot absorb the plan.
In-house.
You hire and carry the salary through the year. Choose this model once you have enough work to keep someone busy and no longer need outside specialists.
Independence
Can one firm perform your internal and external audits
The SEC and the AICPA set different tests:
- SEC
SEC registrants.
Under SEC Regulation S-X, a firm that takes on outsourced internal audit work touching an audit client’s internal accounting controls, financial systems or financial statements is not independent for that client. The exception is where the results will not be subject to audit procedures. Where they will be, that firm cannot sign the external audit report filed with the SEC. - Private
Private companies.
A private company may face AICPA, state board, GAO or DOL independence rules. Under ET 1.295.150, one firm may assist with internal audit and still perform the external audit only where the client’s management directs the function, maintains internal control and evaluates the work. The AICPA sets out the same ground in less technical language in its plain English guide to independence.
So we tell you on the first call which of the two we can be for you. Hire us for internal audit and you may be choosing a different firm for the opinion.
What we do
What an internal audit consultant does
We match the work to the processes and controls you include in the plan:
Process walkthroughs.
We document how your team completes each cycle and compare it with the written process.
Control testing and gap analysis.
We test what is in place, then name what is missing.
Month-end close review.
We review reconciliations and journal entries before your team closes the month rather than after.
Audit and diligence readiness.
We prepare the records an external auditor or a buyer will ask for.
Staffing the gap.
When your team is short, we quote supervised accounting help with reconciliations and payables separately.
Fraud follow-up.
If we find something during testing, we quote the forensic work as a separate engagement.
How it works
How an outsourced internal audit engagement runs
- 01Step 1
Independence check first.
We ask who audits your financial statements before we quote anything else.
- 02Step 2
Scope and risk assessment.
We agree which cycles to review this year and what work we will perform.
- 03Step 3
Fieldwork.
We complete the approved fieldwork on the calendar you set and collect the evidence behind each finding.
- 04Step 4
Findings and follow-up.
You get what we found, what we recommend, and a return visit on the items you chose to fix.
Decide the model
Should you outsource or co-source internal audit
Cost
What drives the cost of internal audit outsourcing
We price the work from your plan, records and staffing needs rather than by the hour:
- 01The number of cycles and locations you include in the plan
- 02Transaction volume and the number of bank and card accounts
- 03Whether we supervise your people or bring our own
- 04The condition of the records and any cleanup we must complete first
- 05Whether you want external audit readiness work bundled in
If your books are behind, we complete the catch-up as a separate engagement before testing controls. You learn very little from testing controls over unreconciled records.
In our words, and a client's
What we say, and what a client said
George Dimov on working outside your own state
“We work with clients all over the country as well as internationally... So don't feel constrained and say, 'Hey, I need to find something I can drive to.' Reach out and we'll let you know.”
George Dimov, CPA
On delivering audit work against a deadline
“Dimov Tax showed remarkable professionalism, dedication, and attention to detail throughout the entire audit process. Despite a very tight deadline on our end, they managed to deliver the completed audit (US GAAP) in due time, ensuring a seamless and efficient experience for our organization.”
Marina Alexandra Ion
Google review
Related services
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Treat the information as general, not advice for your circumstances. Ask a CPA to assess your facts before you appoint anyone to either role.
Ready when you are
Ask us to scope your internal audit plan
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
24 Mercer St, 2nd Floor, Suite 214
New York, NY 10013
United States
Reviewed by George Dimov, CPA. Dimov Audit outsources and co-sources internal audit for private companies across all 50 states. George brings 20+ years of accounting and consulting experience. Profile
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