Annual assessment of the external auditor: Tool for audit committees
When an audit committee is not conducting a comprehensive review of the external auditor, it’s still important to conduct an annual assessment. Our helpful tool identifies three factors your audit committees should consider and assess.
The Enhancing Audit Quality (EAQ) initiative recommended that audit committees should conduct a comprehensive review of external auditors at least every five years. But what needs to happen during an annual assessment in the in-between years?
Annual Assessment of the External Auditor — Tool for Audit Committees identifies three audit quality areas your audit committees should consider and assess:
- independence, objectivity and professional skepticism
- quality of the engagement team
- quality of the communications and interactions with the external auditor
This tool is also available in Microsoft Word format.
You will learn a step-by-step approach for using our tool, including:
- determining the scope, timing and process for the annual assessment
- obtaining input from key personnel
- assessing areas for audit committees to consider
- concluding on the annual assessment and communicating results to the board