How to Audit Outsourced Functions

A company can greatly increase its exposure to risk when it shifts processes to a supplier. The auditor can investigate and report on these risks, as described in the How to Audit Outsourced Functions manual. The manual also addresses the need for early auditor participation in any outsourcing arrangement, in order to participate in due diligence and contract formulation activities. The manual goes on to describe continuing auditor activities, additional concerns related to offshoring, relying on the work of others, and several related matters.