For some organisations, the model of outsourcing the internal audit function to a third party such as PwC can be very effective. To provide this outsourced service, we assign the client a dedicated, core delivery service team, supported by a virtual team of specialists from a broad range of functions, including IT audit, valuation and financial services. Under these arrangements, PwC manages the whole internal audit function and reports directly to the Audit Committee or responsible member of senior management.
In our co-sourcing arrangements, we work in partnership with our clients, taking on a variety of roles and responsibilities, but reporting overall to the chief internal auditor. In some cases, we provide specific technical expertise on an ad-hoc basis, for example, for IT audit work. For other clients, we deliver a substantial part of the audit plan or advise the chief internal auditor in developing the audit plan and reporting to stakeholders.