A number of US organisations have jointly launched a tool to help audit committees perform an annual evaluation of the external auditor to assist in recommending to the board whether or not the auditor should be retained.
The Annual External Auditor Evaluation Tool for Audit Committees is the result of collaboration between the Association of Audit Committee Members, Inc., the Center for Audit Quality, Corporate Board Member, an NYSE Euronext Company, Independent Directors Council, Mutual Fund Directors Forum, National Association of Corporate Directors and Tapestry Networks.
The aim of the tool is to provide ‘a brief, scalable approach’ to allow committees to evaluate auditor performance, with sample questions designed to check service quality and the resource availability, communication and interaction with the auditor, and its independence, objectivity and professional scepticism.
It also provides a form for company personnel input and encourages committees to communicate the process and scope of the any annual audit assessment.
The tool, which is available from the participating organisations websites, is seen as the first outcome of a collaborative programme that is hoped will "enhance the effectiveness of audit committees through education and other types of support" and strengthens "audit committee performance and transparency."
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Association of Audit Committee Members, Inc
National Association of Corporate Directors
