Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
INTERNAL AUDIT COST COMPARISON PROFILE
Page 1 of 3
Your operating systems get more complex as your organisation grows. Tha...
INTERNAL AUDIT COST COMPARISON PROFILE
Page 2 of 3
EXHIBIT A : Annual Cost of an In-house Internal Audit Department
Annual...
INTERNAL AUDIT COST COMPARISON PROFILE
Page 3 of 3
EXHIBIT B : Annual Cost of Internal Audit Services Outsourced To 5wh
An...
Upcoming SlideShare
Loading in …5
×

Internal audit cost comparison profile 07 08-15

315 views

Published on

Comparative pro and cons of Internal Audit outsource versus in-house department.

Published in: Business
  • Be the first to comment

Internal audit cost comparison profile 07 08-15

  1. 1. INTERNAL AUDIT COST COMPARISON PROFILE Page 1 of 3 Your operating systems get more complex as your organisation grows. That means you require an internal audit function to assist you in the effective discharge of your responsibilities by monitoring and promoting effective control at reasonable cost. We at FiveWH Corporate Services (Pvt) Limited (“5wh”)i offer customized internal audit services – a convenient outsource solution that costs you a fraction of what it costs you to run an in-house Audit Department. Here are some of the benefits you derive from outsourcing the Internal Audit function:-  Top flight skills: Not only do you get an effective skills-set, you also have knowledge and research backup from the 5wh “back office” at no extra cost to you.  Cost: You get these skills at a fraction of the cost of running an in-house audit department. That’s because of not only the savings arising out of staff benefits and administration, but also because as 5wh our costs are spread across a portfolio of many clients – economies of scale.  HR: Staff administration is a necessary hassle that many an employer love to pretend does not exist. When you outsource, you get the HR benefit while avoiding the administration costs and risks.  Staffing flexibility: As independent contractors, your relationship with us is not governed by any labour laws, regulations or pronouncements. It is simply contractual. We are in, out, in again - as you wish - depending on your financial and other circumstances.  Related services: Forensic audit and systems tune-up are skills that many audit professionals pretend to have. We do have these and other business skills. We love it when our client CEOs and CFOs resonate their ideas with us!  Experience: Because we have clients across many sectors of the Zimbabwe economy, we have “war stories” to share. We have worked, and are currently working, with various profit and not-for-profit organisations. Compare the cost comparatives in Exhibits A and B belowii :
  2. 2. INTERNAL AUDIT COST COMPARISON PROFILE Page 2 of 3 EXHIBIT A : Annual Cost of an In-house Internal Audit Department Annual Cost Internal Audit Manager Internal Auditor A Internal Auditor B Internal Auditor C Total Gross Annual Salary 15,000 12,000 9,000 9,000 45,000 Annual Bonus [thirteenth cheque] 1,250 1,000 750 750 3,750 Allowances: Transport 480 300 300 300 1,380 Housing 600 450 450 450 1,950 Education 300 240 240 240 1,020 Implied Rent: Office space 300 300 600 M/V Running Cost 3,600 3,600 Employer Contributions: Pension 120 75 75 75 345 NASSA 80 50 50 50 230 Medical Aid 150 90 90 90 420 Fuel [$40 per week] 2,000 2,000 Annual Leave 1,250 1,000 750 750 3,750 Telephone/Internet 900 600 600 600 2,700 Other/Overhead: HR, Admin, etc. 120 120 120 120 480 Total 26,150 16,225 12,425 12,425 67,225 Total [1 Auditor - Manager only] 26,150 Total [2 Auditors - Manager + Auditor A] 42,375 Total [3 Auditors - Manager + Auditor A&B] 54,800 Total [4 Auditors - Manager + Auditor A&B&C] 67,225
  3. 3. INTERNAL AUDIT COST COMPARISON PROFILE Page 3 of 3 EXHIBIT B : Annual Cost of Internal Audit Services Outsourced To 5wh Annual Cost Internal Audit Manager Internal Auditor A Internal Auditor B Internal Auditor C Total Gross Annual Fee 8,000 6,000 6,000 6,000 26,000 Annual Bonus [thirteenth cheque] 0 Allowances: Transport 0 Housing 0 Education 0 Implied Rent: Office space 200 200 M/V Running Cost 0 Employer Contributions: Pension 0 NASSA 0 Medical Aid 0 Fuel [$40 per week] 0 Annual Leave 0 Telephone/Internet 200 200 Other/Overhead: HR, Admin, etc. 120 120 120 120 480 Total 8,520 6,120 6,120 6,120 26,880 Total [1 Auditor - Manager only] 8,520 Total [2 Auditors - Manager + Auditor A] 14,640 Total [3 Auditors - Manager + Auditor A&B] 20,760 Total [4 Auditors - Manager + Auditor A&B&C] 26,880 Cost Profile B as a Percentage of Cost Profile A 40% Contact us i http://www.5wh.co.zw caleb@5wh.co.zw ii Source: 5wh Corporate Services Marketing. Data for illustration only.

×