Acca aaa s21 Notes

reperformance
of their work.
4. Direct assistance
Some jurisdictions (not the UK or Ireland) allow the internal auditors to provide direct assistance to 
the external auditors. This means that the internal auditors perform audit procedures under the 
direction, supervision and review of the external auditor.
If internal auditors are to provide direct assistance, the external auditor must assess the existence of 
significant threats to objectivity ie can the internal auditors be regarded as independent? The external 
auditors must also assess and the level of competence of internal auditors. 
Even if direct assistance is not prohibited, internal audit cannot perform procedures that:
๏
involve significant judgments
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relate to higher assessed risks
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relate to internal audit's own work. 
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Chapter 18
OUTSOURCED ACCOUNTING FUNCTIONS
1. Introduction
Outsourcing can be defined as:
Hiring a party outside the organisation to perform services and to create goods that would otherwise 
be performed internally by the organisation’s own employees.
Outsourcing is often accompanied by off-shoring where the outsourced function is provided by a 
supplier based overseas.
Examples of outsourcing functions include:
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Logistics (eg delivery of products to customers)
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Marketing
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Recruitment
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Legal services
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Production/assembly
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Information technology (facilities management)
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Receivables ledger management (factoring)
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Tax planning and calculations
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Payroll
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Accounting
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Internal audit
This chapter deals particularly with the last six functions on this list.