Request for Proposal

Internal Audit Services

Establishing an Audit Function
(Insert Date)
Response Deadline: (Insert Date)

COMPANY NAME
(Insert Date)

Name:
Title:
Company:
Address:
City, State, Zip:
Request for Proposal (RFP) to provide Co-Sourced Internal Audit Services for Company X

Dear (Name):
Company X is establishing an internal audit function and is seeking a qualified internal audit
services provider to perform co-sourced internal audit services. We invite your firm to participate
and submit a proposal. The selected provider will begin assuming internal audit responsibilities
toward the end of (Insert Year).
The internal audit partner will help Company X develop and execute a multi-year internal audit
plan, to include input from our U.S. operational council, U.S. management team, and group audit
function.
Responding firms will be evaluated and selected based on the quality of the written proposals and
oral presentations, as determined necessary, as described in the enclosed RFP.
Sincerely,
Company X
Chief Financial Officer

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COMPANY OVERVIEW
(Insert Company Overview)
Company X is a XXX, with its corporate office located in (City) and operating entities in
(Locations). With annual revenues over ($ Amount), and a work force of (Number), Company X
includes (Number) divisions in (Number) of states.
Primary back office systems include XXX.
Our most recent audited financial statements are included with this package. Please utilize the
financial statements for this purpose only and maintain confidentiality of the information.

PROPOSAL INFORMATION
The Company X internal audit function will be responsible for evaluating and improving the
effectiveness of the risk management, control, and governance processes in all locations in which
Company X operates and will be managed by the audit committee of the board of directors. The
successful service provider will demonstrate a co-sourced audit approach that works in
conjunction with the existing internal audit director and with management to improve processes
and share best practices while providing assurance that key risks are controlled.
The expected activities to be covered by the internal audit service provider will be determined
after the successful bidder is selected. For purposes of this proposal, you should assume a level
of effort of approximately X hours.
In your response to this RFP, please respond to the following:
Internal Audit Experience and Resources
1. Provide an overview of your internal audit practice, capabilities and experience.
2. Provide the number of dedicated resources in your internal audit and information technology
(IT) audit practices in (Location) and throughout the (Country).
3. Provide an overview of your firms experience and expertise in providing co-sourced internal
audit services to companies in the (Insert Industry) industry.
4. Provide a list of local clients for which your firm provides significant internal audit services.
Internal Audit Team
1. Provide an organizational chart for the team that will serve Company X. Indicate their roles,
education and degrees earned as well as professional certifications such as CPA, CIA, CISA,
etc. Include the resumes of these team members in an Appendix to your response.
2. Describe your firms commitment to internal audit staff training and development.
3. Provide your approach to staffing the co-sourcing team. Provide an overview of your
approach to ensure staff continuity.
4. Provide an overview of the services and expertise of the subject matter experts that will bring
a competitive advantage to Company X given your knowledge of our business and industry.
Internal Audit Methodology
1. Describe your firms internal audit methodology and differentiating factors that provide
enhanced value to clients.
2. Describe the quality service level measurements and metrics your firm would recommend to
be in place specific to the co-sourcing arrangement.
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Information Technology
1. Please provide information about your IT auditing capabilities including, but not limited to,
experience in performing reviews of applications and implementations, system development
reviews, system and network security, business resumption planning, and disaster recovery.
2. Describe how you integrate IT auditing into your internal audit projects, both at a project level
and at an overall audit plan level.
3. Describe what type of technology tools your firm utilizes and how they would be utilized in the
risk assessment and audit processes.
Start-Up Assistance and Communication
1. Describe how you would typically execute the start-up of a new internal audit function.
2. Describe any observations about key risks facing Company X from an industry perspective,
and how you would incorporate those risks into your approach.
3. Describe your approach to communication with the following parties: internal audit director,
group audit, management, the audit committee, and the U.S. operational council.
4. What knowledge sharing tools do you utilize to share information internally and with your
clients?
References
1. Provide four (4) internal audit client references (complete with company contacts and phone
numbers). At least three should be currently being served by your local team, and at least two
should be in our industry. Please include a description of services being provided for each
reference.
Pricing
1

Provide a table detailing the hourly rates by staff level that will be charged to Company X for
all work. If rates will vary based on level of effort and/or mix of speciality services, please
provide assumptions, including the estimated mix of partners, senior managers, managers
and staff that will be assigned to the engagement.

Include your assertion regarding how long you will commit to the proposed price.

Value Add
1. How will your firm be confident that a value-added contribution will be made to Conmpany X
in this relationship? How will this be communicated to management and the audit committee?

Source: www.knowledgeleader.com

OTHER
If you choose to respond to this request for proposal, please submit (Number) hard copies to the
following address by (Time and Date).
(Insert Address)
Your proposal should address each of the areas outlined in the Proposal Information section
above.
We would appreciate your replying to (Insert Name and Email Address) by (Insert Date and Time)
as evidence of your participation in the proposal process and intent to bid.
Dependent upon our evaluation of the written proposals received, we may or may not request oral
presentations from selected firms.

TIMELINE
RFP sent to potential co-sourced service providers

(Insert Date)

Intent to Bid replies returned from potential service providers

(Insert Date)

Proposal review by Company X

(Insert Date)

Oral presentations (if necessary)

(Insert Date)

Selection made by Company X

(Insert Date)

Please direct any clarifying questions in response to this RFP, in writing, to (Insert Name) at
(Email or Phone). Company X will share all questions received and all answers with all bidders.
We look forward to your interest in working with Company X.

Source: www.knowledgeleader.com