Oversight of the Independent Auditor FAQ
In brief: Boards rely on independent auditors to give an unbiased opinion on the company's financial statements. The audit committee plays a crucial role in ensuring that the independent auditor produces quality work, especially in public companies. This Director FAQ reviews the audit committee's oversight of the independent auditor in public companies, followed by specifics on this oversight role to hire and compensate the independent auditor and check the auditor's work. The closing sections cover the use of independent auditors by private companies and nonprofits.
This resource can help your board to
- learn about the role of the audit committee in providing oversight of the independent auditor;
- hire, compensate, and evaluate the independent auditor; and
- determine whether or not to hire an independent auditor at private companies and nonprofits.
Most relevant audiences: audit committee members