Most organizations have adopted some form of outsourcing. Whether it includes outsourcing IT operations, application maintenance, systems development, applications services, information security, or networking, they all constitute
outsourcing. The advent of the “cloud” has added another dimension to outsourcing.
The process and results are fraught with risks, but also have rewards. As an auditor, it is essential to understand how outsourcing affects the controls environment and the audit universe and how to apply it.
We will discuss the:
· Business of outsourcing
· Effect on the audit universe
· The principles of outsourcing – its benefits and limitations
· How to audit in an outsourced environment