Outsourcing Internal Audit in Germany
A powerful internal audit must actually afford all medium-sized companies from a certain size. For capital market-oriented companies, the German Accounting Law requires management boards and supervisory boards to set up such an independent internal audit. In addition, the critical view of internal auditing helps to uncover weaknesses and optimize processes.
Support and takeover of the internal audit – S+P Compliance Services
We offer Compliance Services for internal auditing in Germany. For the establishment of a functioning internal audit, we assume the following tasks:
- Order as internal audit
- As internal auditing, we monitor compliance with the rules on proper business organization and other statutory requirements.
- As an internal audit, we advise and inform the management regarding existing deficiencies and identified organizational gaps.
- Selected processes are checked randomly, risk-oriented and at appropriate intervals for their conformity.
- As internal audit, we assume our tasks without instructions and with the necessary specialist knowledge.
- We report directly to the management.
You wish a free quote for your outsourcing of internal audit in Germany. We are happy to help. Inquire now online: Send your request directly to the S+P Team Internal Audit & Compliance, Email: firstname.lastname@example.org
Outsourcing the internal audit to an external service provider – what advantages does such a solution offer?
One of the key requirements for internal audit staff is their independence. They examine on behalf of the management, who then reports the results to the Supervisory Board. This means that internal auditing must therefore be above all company-internal political and strategic considerations.
The establishment of an independent audit also means that these employees must not be entrusted with any tasks that are not related to auditing. Such an exemption of employees often fails in practice because of the necessary full utilization of the employees and the available resources.
Relationship with the management board and the supervisory board
The internal audit function should be a competent partner for the management board and, increasingly, for the supervisory board. The triangular relationship between management board, supervisory board and internal audit function works optimally only when all three bodies have experienced members who know and accept their roles in this structure. Supervisory law has set a number of milestones to strengthen the role of supervisory boards and internal audit functions in the banking sector.
The internal audit function is a key component of banks‘ risk management – Outsourcing Internal Audit in Germany
The expectations that banking supervisors have of it are correspondingly high. The general legal framework for these expectations has changed over the years. For instance, corporate governance has been strengthened on a number of occasions by various changes in company law, e.g. by the Control and Transparency in Business Act (Gesetz zur Kontrolle und Transparenz im Unternehmensbereich – KonTraG) of 1998.
For credit institutions, the tasks and position of the internal audit function are firmly established in supervisory law. As the Banking Act (Kreditwesengesetz – KWG) does not contain any specific provisions in this regard in section 25a (it only requires banks to set up an internal audit function as part of an appropriate and effective risk management system), banking supervisors have set forth further details on this provision in their Minimum Requirements for Risk Management (MaRisk).
Business Judgment Rule and Internal Audit activity – Outsourcing Internal Audit in Germany
For senior management to act in an entrepreneurial decision for the benefit of society, it is essential that senior management can rely on reliable information. In doing so, Internal Audit takes over the important information as a quality assurance provider and as an information provider. A sensitive special case arises when the internal audit determines that the management body in principle under-informed or unaudited information used as a basis for decision. Here, Internal Audit supports the management in the implementation and compliance with the requirements arising from the Business Judgment Rule.
Can an external service provider go as far as the in-house internal audit?
In many cases, the company chooses a mix of its own internal audit and external specialists. We also call this kind of cooperation with our clients co-sourcing. Special audit procedures can then be outsourced cost-effectively to external specialists. The internal audit can then concentrate fully on the basic tasks. Specialized knowledge, which is not needed every year, can then be purposefully “bought in” from the outside. If you then set the costs for co-sourcing models or even for special orders in relation to the structure of your own audit capacity, it is worth outsourcing the internal audit in most cases.
S+P Outsourcing Services – support and takeover of internal audit
Do you have questions about outsourcing Internal Audit in Germany? Are you planning to outsource or support your internal audit? You would like to further expand your internal control and monitoring system? They are looking for reinforcements in the area of money laundering and anti-fraud. You check the outsourcing of the compliance officer?
For 10 years we have been accompanying medium-sized companies as an outsourcing specialist. Among our clients are u.a. Healthcare companies, medical facilities, utilities, manufacturing companies, financial services, leasing companies, factoring companies and acquirers.
You are looking for a partner for a reliable and cost-efficient outsourcing solution. Try us. We are happy to inform you in a personal conversation.
Our services for your security as internal audit
Would you like more information on this topic? We are happy to assist you with our revision check to limit possible liability risks. Send your request to the department Internal Audit, Achim Schulz email@example.com or call us directly at +49 89 452 429 70 101.
Outsourcing with the S+P Outsourcing Solutions.
What outsourcing solutions do we offer?
We offer Outsourcing Solutions for MLRO, Data Protection Officer, Information Security Officer, Compliance Officer or Internal Audit in Germany. You can see the scope of the task covered by our S+P Compliance Team directly in the following performance overview.
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The Three Lines of Defense model: Internal audit as an integral part of the internal control system. Risk management, compliance and internal auditing are indispensable representatives of the management. When implementing an internal audit, organizational independence must be taken into account. The new revision standards DIIR No. 3 and German IDW Standard 983 apply in practice for a secure internal audit organization.