1. Outsourcing

2. Specialist Organisation
(Service organisation)

3. Flexible
Specialist Organisation
(Service organisation)

4. Flexible Expertise
Specialist Organisation
(Service organisation)

5. Cost
Effective Flexible Expertise
Specialist Organisation
(Service organisation)

6. Pros Cons
Specialist Organisation
(Service organisation)

7. Pros Cons
Skill
shortage? Specialist Organisation
(Service organisation)

8. Pros Cons
Skill
shortage? Specialist Organisation
No
(Service organisation)
Waste

9. Pros Cons
Quality
Skill
shortage? Specialist Organisation
No
(Service organisation)
Waste

10. Pros Cons
Quality
Skill
shortage? Specialist Organisation
No
(Service organisation)
Waste
Risk
Transfer

11. Pros Cons
Quality
Skill
shortage? Specialist Organisation
No
(Service organisation)
Waste
Risk
Transfer
No
Non core

12. Pros Cons
Quality
Skill
shortage? Specialist Organisation
No
(Service organisation)
Waste
Risk
Transfer
No
Non core

13. Pros Cons
Quality
Skill Stuck in
shortage? Specialist Organisation contract
No
(Service organisation)
Waste
Risk
Transfer
No
Non core

14. Pros Cons
Quality
Skill Stuck in
shortage? Specialist Organisation contract
No
(Service organisation) Conflict
Waste of Interest
Risk
Transfer
No
Non core

15. Pros Cons
Quality
Skill Stuck in
shortage? Specialist Organisation contract
No
(Service organisation) Conflict
Waste of Interest
Risk
Transfer
Cost?
No
Non core

16. When not to
outsource?

17. When not to
outsource?
• Areas of judgement

18. When not to
outsource?
• Areas of judgement
• Non specialist areas

19. When not to
outsource?
• Areas of judgement
• Non specialist areas
• Frequent

20. When not to
outsource?
• Areas of judgement
• Non specialist areas
• Frequent
• Where no expertise is
required

21. Audit Impact

22. Audit Impact
• Visit organisation

23. Audit Impact
• Visit organisation
• Scope - access denied?

24. Audit Impact
• Visit organisation
• Scope - access denied?
• Controls - better or
worse?

25. ISA 402

26. ISA 402
• Look at Materiality

27. ISA 402
• Look at Materiality
• If significant -
understand & Access
controls

28. ISA 402
• Look at Materiality
• If significant -
understand & Access
controls
• Look at reputation risk

29. ISA 402
• Look at Materiality
• If significant -
understand & Access
controls
• Look at reputation risk
• Document contract
terms

30. ISA 402
• Look at Materiality
• If significant -
understand & Access
controls
• Look at reputation risk
• Document contract
terms
• Accessibility to records

31. ISA 402
• Look at Materiality • Any performance
standards?
• If significant -
understand & Access
controls
• Look at reputation risk
• Document contract
terms
• Accessibility to records

32. ISA 402
• Look at Materiality • Any performance
standards?
• If significant -
understand & Access • Extent of controls -
controls errors? Monitored?
• Look at reputation risk
• Document contract
terms
• Accessibility to records

33. ISA 402
• Look at Materiality • Any performance
standards?
• If significant -
understand & Access • Extent of controls -
controls errors? Monitored?
• Look at reputation risk • Any indemnities in
contract?
• Document contract
terms
• Accessibility to records

34. ISA 402
• Look at Materiality • Any performance
standards?
• If significant -
understand & Access • Extent of controls -
controls errors? Monitored?
• Look at reputation risk • Any indemnities in
contract?
• Document contract
terms • Get sufficient &
appropriate evidence
• Accessibility to records still