Many organizations are seeking opportunities to reducecut co

Many organizations are seeking opportunities to reduce/cut costs. Is it a duplication of costs for an organization to have both an internal audit and an external audit?

Solution

Yes it is a duplication of cost to have both internal and external audit for the same process. Because firstly you are performing a set of action to get a desired result, secondly you are auditing the same validated process and again an external auditor validates the same process. On a brighter end, you can see that it is a necessary evil, to go for an internal and an external audit because, the same person doing the job at the same station may tend to skip some process, thinking that it mightnot affect the process, an internal auditor is essentially from the same team, so he/she may tend to hide the flaws in the process to not get the coworker blamed. An external auditor may help find these loop holes that are being skipped or hidden by the employees.