Published by the CAQ in partnership with the Audit Committee Collaboration, the External Auditor Assessment Tool is designed to assist audit committees in carrying out their responsibilities of appointing, overseeing, and determining compensation for the external auditor. The tool contains sample questions to help committees in three specific areas:
- Quality of services and sufficiency of resources provided by the auditor;
- Quality of communication and interaction with the auditor; and
- Auditor’s independence, objectivity, and professional skepticism.
The tool also includes a sample form and rating scale for obtaining input from company personnel about the external auditor, as well as resources for additional reading that can benefit audit committees and others charged with governance.
Updates in the 2017 edition include considerations related to changes in accounting standards and potential risk areas, such implementation of the new revenue recognition standard, use of non-GAAP financial information, and ongoing cybersecurity concerns.