Home > Risk > New guidance on assessing the external auditor

New guidance on assessing the external auditor

October 15, 2012 Leave a comment Go to comments

The Center for Audit Quality (CAQ) has released new guidance for audit committees that will assist them in their oversight of the external auditor.

However, should the fox advise on its own oversight? The CAQ is an arm of the AICPA and while the guidance is useful, it is not independent.

My advice is for the audit committee to engage with the internal auditor to develop a robust process for assessing the performance of the external auditor. In addition to the questions in the CAQ guide, the committee should consider:

  • Whether the external auditor has adopted an appropriate attitude for working with the company, including management and the internal auditor
  • Whether the auditor has taken a top-down and risk-based approach that focuses on what matters and not on trivia, minimizing both cost and disruption
  • Whether issues are addressed with common sense rather than a desire to prove themselves
  • For more, please see this other post, which includes a link to a form I used in the past to assess auditor performance.

    I welcome your comments.

    About these ads
    1. No comments yet.
    1. No trackbacks yet.

    Leave a Reply

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s


    Get every new post delivered to your Inbox.

    Join 5,775 other followers

    %d bloggers like this: