Combining Internal Audit & Compliance

We are thinking about combining the compliance function into the Internal Audit Department and making it a Risk Mgmt Dept.  I know a lot of you do this so how does it work for you?  Who audits your compliance functions?  If is is outsourced, do you manage the relationship?  Do you still have a Compliance Committee in charge of  organizing new procedures?  

Thank you for any guidance you can provide us!

Amy Heltzel