The CAQ released an updated "External Auditor Assessment Tool" aimed at assisting audit committees in conducting an effective evaluation of the company's external auditor. This edition includes considerations relating to changes in accounting standards and new and emerging risks (e.g., sustainability information, cybersecurity, emerging technologies), as well as firm-level audit quality.
The user-friendly resource includes sample questions to assist audit committees in these specific areas relevant to the evaluation:
- Quality of services and sufficiency of resources provided by the audit firm and the engagement team
- Quality of communication and interaction with the auditor
- Auditor’s independence, objectivity, and professional skepticism
The tool also includes a sample form and rating scale for obtaining input about the outside auditor from others within the company - including management, internal audit, and other key managers, as well as relevant audit requirements and standards, and additional suggested audit committee resources.
For those who are unfamiliar with this resource (which has been periodically updated over the years), check it out. Having experienced its benefits first-hand, it's a great resource for audit committees and their coordinators and advisors, including the corporate secretary and other governance professionals.
Access additional information & resources on our Audit Committees and Auditing & Audit Firms pages.
This post first appeared in the weekly Society Alert!