Help Is Here For Audit Committees—CAQ Offers Updated Auditor Assessment Tool

To fulfill their oversight responsibilities, audit committees typically evaluate the outside auditor at least annually to determine, in part, whether the auditor should be engaged for the subsequent fiscal year. The Center for Audit Quality has just published a new updated External Auditor Assessment Tool, which is "designed to assist audit committees in carrying out their responsibilities of appointing, overseeing, and determining compensation for the external auditor." Beyond oversight, the CAQ observes that a "[r]obust, two-way dialogue that includes providing constructive feedback to the external auditor may improve audit quality and enhance the relationship between the audit committee and the external auditor." Like many other helpful CAQ tools, this tool provides a number of sample questions to help audit committees satisfy their oversight obligations with regard to the outside auditor. (The discussion below includes only a sampling of the CAQ's questions provided