Transition from in-house to outsourced internal audit model

Following decades of using an in-house internal audit model, a multi-billion dollar regional bank’s Director of Internal Audit retired. The client made the decision to outsource and enhance the capabilities of its internal audit function.

Challenges

  • Client encountered difficulty hiring a replacement with the broad-based professional experience required to lead the function going forward

Solutions

  • Provided DHG team members to manage the internal audit function
  • Assembled a team of qualified professionals to serve as the client’s internal audit function, including two former employees from the internal audit department. This provided consistency and continuity throughout the transition.
  • Created a risk assessment and new risk-based audit plan that was accepted by the audit committee
  • Brought credentialed subject matter leaders not previously available to the internal audit team, in areas such as IT, compliance and trust

Impact

  • Smooth, successful transition to the new outsourced model, and all deadlines were met
  • Maintained sound working relationship with Big Four external audit firm throughout transition, and the external audit firm continued to rely on our work
  • Enhanced quality through the outsourced internal audit model while realizing cost savings for the client
  • Presented the client with many subject matter leaders, providing enhanced insights into risks, internal controls and risk management practices