In Recent Years There Has Been an Increase in the Number

Essay

In recent years there has been an increase in the number of larger companies outsourcing their internal audit function, often to their external auditors.

One of your audit clients is considering establishing a new internal audit function, either by recruiting its own internal auditors or by contracting with your firm for the provision of internal audit services.

Describe the advantages and disadvantages of the external auditors providing an internal audit service to their clients.