Answer (A) is correct . Oversight of the work of the independent outside auditor, including coordination with the internal audit activity, is generally the responsibility of the board. Actual coordination should be the responsibility of the CAE. However, the board in the exercise of its oversight role may request that the CAE assess the performance of the external auditors. Ordinarily, this assessment is made in the context of the CAE’s function of coordinating internal and external auditing activities (PA 2050-1).
Answer (B) is incorrect because Coordination between internal and external auditors involves, among other things, (1)?sufficient meetings to ensure coordination of work and efficient and timely completion of activities, and to determine whether observations and recommendations from work performed to date require that the scope of planned work be adjusted; (2) access to each other’s work programs and working papers; (3) exchange of internal audit communications and external auditors’ management letters; and (4) common understanding of techniques, methods, and terminology.
Answer (C) is incorrect because Coordination between internal and external auditors involves, among other things, (1) sufficient meetings to ensure coordination of work and efficient and timely completion of activities, and to determine whether observations and recommendations from work performed to date require that the scope of planned work be adjusted; (2) access to each other’s work programs and working papers; (3) exchange of internal audit communications and external auditors’ management letters; and (4) common understanding of techniques, methods, and terminology.
Answer (D) is incorrect because Coordination between internal and external auditors involves, among other things, (1) sufficient meetings to ensure coordination of work and efficient and timely completion of activities, and to determine whether observations and recommendations from work performed to date require that the scope of planned work be adjusted; (2) access to each other’s work programs and working papers; (3) exchange of internal audit communications and external auditors’ management letters; and (4) common understanding of techniques, methods, and terminology.
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