Should you outsource internal audits for ISO certification?

ISO certification offers a wide range of benefits for any business – demonstrating to customers your commitment to quality and helping you streamline your processes and increase efficiency.

The ISO certification process can be time-consuming for any business. You’ll need to review your processes, pull together all the necessary evidence and audit your business internally. Plus, it’s not just a one-off task. You’ll need to demonstrate that you’re continuing to meet the standard moving forward. Whether you decide to complete your audits internally or outsource this work to an external auditor will depend on a number of factors, including resources, budgets and business needs.

In this blog, I’ll take you through the pros and cons of conducting internal audits within your business or outsourcing this task.

The difference between internal audits and external audits

There are two types of audits for ISO certification: external audits and internal audits.

External audits are carried out by third parties, such as ISO certification bodies. External auditors will review your overall governance, processes, documentation and the way you run your business against the requirements of the standard. These auditors can award you ISO certification/recertification or recommend further work to enable you to reach that standard. Third-party auditors are overseen by the UK Accreditation Service (UKAS).

Internal audits enable organisations to assess their own compliance and also prepare for external audits. These audits should be carried out regularly – the exact frequency will depend on the nature and size of your business. Internal audits can be carried out by suitably trained staff or outsourced to an external auditor. So, which is the better option?

Your choice really depends on your business. Do you have the right skills and expertise internally to conduct your audits? Even if you don’t have the skills internally, you could pay for specific team members to complete the necessary training. This provides an opportunity to support staff development and demonstrate a culture of continuous learning (which may well be useful for accreditations such as Investors in People). By conducting internal audits, your staff will develop a greater awareness of your wider business and how different teams/departments contribute to your growth and success.

Internal auditor training

The cost of internal auditor training can range from £750 to £1750 per staff member – depending on the type of training and the format (whether you bring in a company to train your team or your staff attend external training). If a staff member subsequently leaves or moves to another role within the business, you’ve lost those skills.

Hiring an external consultant is an alternative. External consultants will have all the necessary knowledge of ISO standards and be experienced in auditing complex activities. They will also be fully up to speed on all the latest changes and updates to ISO standards. Although hiring an external expert comes at a higher upfront cost, this may actually save money in the longer term. External consultants can often spot issues within your business that may have been overlooked internally or identify ways to increase efficiency and streamline operations. You’ll be able to call on them as required without having to put additional pressure on your own teams.

A hybrid approach

Another option is to use a hybrid approach – where you train internal auditors but also draw on some support from an external consultant. This consultant can provide a mentoring role – helping staff understand how to interpret the requirements and provide coaching in different audit scenarios. I work with many clients in this way. Often this hybrid approach is only needed in the short term when the internal auditors become familiar with the requirements.

A fresh pair of eyes

A key benefit of hiring an external auditor is having a fresh perspective on your business operations. An external consultant will work with many different clients, sometimes in various sectors, and can benchmark your business against best practice.

External auditors are also impartial observers – they don’t have any allegiances or conflicts of interest within your business. They will be upfront with you about any issues that they find, and their advice will be objective.

The benefits of hiring an internal auditor

Internal auditing can tie up a lot of staff time – which could be dedicated to revenue-generating work. As a business owner, you need to think about whether you have the resources internally to allocate to these audits on a routine basis – which will include planning, conducting and reporting tasks. Conflicting priorities may mean that you have to delay audits, or you no longer have the capacity to carry out these tasks.

An external consultant can give this task undivided attention, dedicating a set number of hours and flexing their support to suit your needs. So, as an example, I might be working on internal audits for a large company every month, but I may only need to audit a smaller business once or twice a year. Furthermore, I can tailor my services, depending on whether my client is looking for full support or more of a hybrid approach.

By hiring an external consultant, you get that expert support – without any long-term commitment or the costs associated with training staff or hiring an in-house compliance expert.

Internal audits have an important role to play in helping to develop a culture of continuous improvement within your organisation. Whether you decide to train internal auditors, outsource this task to an external consultant or use a hybrid approach will be determined by your business needs. You’ll need to weigh up the benefits of each approach and decide which is the best fit for you.

To learn more about my internal audit support services, please take a look at the Quality Excellence website or get in touch.