LAPAI INTERNATIONAL JOURNAL OF MANAGEMENT AND SOCIAL SCIENCES A Publication of the Faculty of Management & Social Sciences, IBB University, Lapai, Niger State-Nigeria Vol. 12 No.1, June, 2020 ISSN: 2006-6473 70 OUTSOURCING OF INTERNAL AUDITING SERVICES AND PERFORMANCE OF ORGANISATIONS IN NIGERIA: A CONCEPTUAL APPROACH 1 Lukman Ojedele Lawal (awwalu969@gmail.com ) +2348037325265 2 Tajudeen Lawal (Ltajudeen@yahoo.com ) +2348165255556 2 Eunice Oluganna (olugannaeunice@gmail.com ) +2347033305200 1 Department of Accounting Gombe State University, Gombe, Nigeria 2 Department of Accounting and Finance, Kwara State University, Malete, Nigeria Abstract The spate of corporate collapses and financial scandals has resulted in an increased focus on internal auditing as an important consideration for organisations. The basic role of internal auditing is to help management achieve company goals. It also provides assurance that management has implemented a satisfactory internal control system to prevent risks. It is observed that sourcing of internal audit services internally always leads to lack of independence by the staffs that provide these services since they are employees of the entity and under the control of management. In addition to that, the external auditors find it difficult to place reliance on the work performed by internal auditor.This study examines outsourcing of internal audit functions and performance of organisations in Nigeria by reviewing some selected studies from within and outside Nigeria. The objective of the study is to conduct a conceptual review (to determine how outsourcing of internal audit function affects performance of organisations in Nigeria based on the findings) of previous studies. This paper discovered from previous studies that outsourcing of internal audit functions is the remedy to efficiency, cost savings and reliability of internal audit services in every organisation. This study is of the opinion that more researches should be conducted on the topic in Nigeria and that organisations in Nigeria should key into outsourcing of their internal audit functions as this brings about cost saving, reliability of record as well as independence of opinion. Keywords: Internal audit, Internal Auditors, Outsourcing, Performance 1. Introduction Outsourcing is a highly effective strategy, widely used in various types of business to gain a competitive edge. The tremendous growth of outsourcing first started in the manufacturing and information technology industries. It has spread into the accounting industry as well. However, in accounting, the major problems and benefits caused by outsourcing are different from those identified in the manufacturing and IT industries. This leads to the question of whether or not outsourcing of internal audit functions would have significant impact on the performance of firms. The central reason for internal audits is to help managing executives in the effective performance of their tasks by providing them with scrutiny, evaluation, approvals and relevant observations regarding the undertakings appraised (Okezie, 2004). Raja (2002) argued that the increase of internal audit normally adds value and improves on an organisation‟s operations because of its objectivity and the consultative forums with other departments in the same organisation. Meckling (2000) identified auditing as one of the methods for monitoring and controlling the activities in the agency theory. Accordingly, internal auditing is an independent,