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The Inspector General Function and Outsourcing: An Introduction
Author(s) -
Shapiro David M.
Publication year - 2016
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22238
Subject(s) - private sector , outsourcing , public sector , profitability index , business , accounting , function (biology) , shareholder , unit (ring theory) , agency (philosophy) , industrial organization , finance , economics , marketing , corporate governance , economy , economic growth , philosophy , mathematics education , mathematics , epistemology , evolutionary biology , biology
In light of the apparent lack of success of one‐size‐fits‐all approaches to process improvement generally and the importance of localized conditions to problem solving, the inspector general (IG) function may conceivably be performed, entirely or in part, by the private sector without any clearly obvious detriments in fact; that is, particular circumstances may support the IG as a private‐sector outsourced inspection and oversight unit. As public‐sector budgets become strained and the significance of the independent (not‐for‐profit) sector gains in prominence and influence, the role of the IG may be redesigned and reimplemented as a function within the independent/private sector, separate and apart from the agency under its inspection and oversight responsibilities. Thus, it would be directly subject to the demands and constraints commonly applied to the private sector, including performance measures such as profitability, maintenance of adequate capital reserves, and so on. The relationships among the public, private, and independent sectors, including analysis of the effectiveness of financial and performance standards, as well as potential effects on the IG unit of obligations to stakeholders distinct from the current mix of stakeholders in the provision of public‐sector service such as private shareholders, will form part of this discussion. © 2017 Wiley Periodicals, Inc.