Regarding an organization's decision to retain an external audit firm, the chief audit executive (CAE) should:
A) Work with the organization's chief financial officer to evaluate the external auditor's performance and together make the decision.
B) Not be involved in this decision process as it would compromise the CAE's objectivity.
C) Evaluate the external auditor's performance and retain the external auditor if quality and cost criteria are met.
D) Assist the audit committee by facilitating the development of an appropriate evaluation process.

Question

Quizplus · Accepted Answer

The CAE should assist the audit committee by facilitating the development of an appropriate evaluation process, ensuring that the decision is made objectively and based on relevant criteria.

Regarding an Organization's Decision to Retain an External Audit Firm