Business In Kolkata

The investigation committee observes, "According to the division of duties rules of Toshiba, the corporate audit division is in charge of auditing the corporate divisions, the companies, branch companies, and affiliated companies. However, in reality the corporate audit division mainly provided consultation services for the 'management' being carried out at each of the companies, etc (as part of the business operations audit), and it rarely conducted any services from the perspective of an accounting audit into whether or not an accounting treatment was appropriate."

From time to time over the past 15 years, the idea of outsourcing some of a company’s internal audit work has come into fashion, and it is once again on the agenda. Internal audit functions overwhelmingly keep their work in-house; in 2014, for example, only 9% of their audit budgets went to outsourced or “co-sourced” services. And of that small number, many functions have seen outsourcing engagements fail to achieve their objectives, causing them to bring the function back in-house after two to three years. There are good reasons for this: it’s hard to find the right vendor, and even harder to get the right services from them across any length of time.

From time to time over the past 15 years, the idea of outsourcing some of a company’s internal audit work has come into fashion, and it is once again on the agenda. Internal audit functions overwhelmingly keep their work in-house; in 2014, for example, only 9% of their audit budgets went to outsourced or “co-sourced” services. And of that small number, many functions have seen outsourcing engagements fail to achieve their objectives, causing them to bring the function back in-house after two to three years. There are good reasons for this: it’s hard to find the right vendor, and even harder to get the right services from them across any length of time.