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CAQ: External Auditor Assessment Tool: A Tool for Audit Committees
- 28 October 2025
- Audit
- South African Accounting Academy
Summary:
The Centre for Audit Quality (CAQ) has issued a questionnaire on External Auditor Assessment – which can be used as a tool by Audit Committees.
Article:
Audit committees can use a targeted assessment tool to evaluate whether to retain the external auditor.
The questionnaire focuses on four key areas:
- Quality of services and sufficiency of resources provided by the external auditor – the engagement team
- Quality of services and sufficiency of resources provided by the external auditor – the audit firm
- Communication and interaction with the external auditor
- Auditor independence, objectivity, and professional scepticism
The following are also included:
- Sample Form: Obtaining input from company personnel about the external auditor
- Appendix I: Relevant US requirements and standards
- Appendix II: Resources and suggested reading
Constructive, two-way dialogue with the auditor strengthens audit quality and committee oversight.
The evaluation should cover the auditor’s qualifications, firm-wide quality practices, transparency, and professional skepticism.
You can access more information at https://www.thecaq.org/external-auditor-assessment-tool-a-tool-for-audit-committees
Click here to download the 30-page questionnaire:
Relevance to Auditors, Independent Reviewers & Accountants:
- As a practitioner, you may need to advise your clients, who have audit committees, on their functions and what is expected of them by investors.
- The audit committee has wide ranging roles and bears significant responsibility in supporting the Board – especially in assessing the external audit function..
- Audit committees should be aware of guidance issued by regulators and other roleplayers, such as the CAQ.
Relevance to Your clients:
- The audit committee has wide ranging roles and bears significant responsibility in supporting the Board – especially in assessing the external audit function.
- Audit committees should be aware of guidance issued by regulators and other roleplayers, such as the CAQ.