Assessing external audit quality is an important part of effective governance. Boards and audit committees need to consider not only whether an audit has been completed, but the quality of the audit, the auditor's independence and capability, and whether the relationship continues to meet the organisation's needs.
PwC New Zealand's guide, Assessing external audit quality and auditor performance, provides a practical framework to support this assessment.
The guide is designed for directors and audit committee members and covers:
- the questions and evidence boards should consider when assessing audit quality throughout the audit cycle
- an annual assessment toolkit covering five areas of audit quality
- a self-review of the board's contribution to audit quality
- guidance on periodically reviewing the auditor relationship, including the benefits and risks of continuity
- practical tools to support evidence-based decisions and shareholder communication.
