We are at a point in our growth where a portion of our internal audit plan might have to be outsourced. We are contrasting this approach with hiring an additional staff member. I realize there are differing levels of expertise and cost with outsource firms, but what would be an 'average' cost per hour for an outsourced firm, assuming that approximately 1000 hours are involved? The outsourced audits would be both finance and compliance related audits. ANY direction you can give me would be most appreciated. Thanks.

We outsource Information Security, BSA/AML and Accounting. All three are nationally recognized audit and compliance consultants. Their average hourly wage is $150-$175 per hour, per person. Meals, lodging and travel are added.

The costs do go down slightly for contracts with more guaranteed hours.

We are $2 billion, 40 branches.

MarkB

We entered a multi year agreement with an outsourced firm for IT auditing. Rate is $165 all inclusive. No other direct expenses, e.g, travel, phone, lodging, are billable to us. We estimate the cost of outsourcing vs. an IT auditor + benefits is the same. We will get 4-6 audits per year.

Outsource the project regardless of the cost. An external auditor won't tread lightly on sensitive issues like an internal person may...in a perfect world an employee would be just as good, but in the real world their job is still contingent on senior management approval. If an audit company looses a gig, they go on to the next client without missing a beat.

1000 x $165/hr = a measly $165,000 year. The contacts and diverse experience that an external company can bring is invaluable. You get a company dedicated to auditing banks and dozens of people who focus on finding problems at your bank. I think this is the best way to go rather than hiring one person internally to do the job.