The board or directors will ensure outsourced audits are effectively managed

Status: Live

If audits are outsourced, the organization will review whether the directors ensure that the institution effectively manages any outsourced internal audit function. [UCF ID 01203]

Supporting and supported controls

This control directly supports:

Board of directors and senior management [UCF Control ID 00679]

This control has the following supporting controls:

The board or directors will review external auditor's involvement in assessments of controls [UCF Control ID 01204]

Authority documents complied with:

FFIEC IT Examination Handbook – Audit, August 2003, Pg 20, Pg 23, Exam Tier I Obj 11.7; Securities Exchange Act of 1934, § 78j-1(m)(2)

Banking and Finance Guidance

The Board of Directors should ensure the outsourced audit function operates effectively and complies with all regulations. [Pg 20, Pg 23, Exam Tier I Obj 11.7, FFIEC IT Examination Handbook – Audit, August 2003]

NASD NYSE Guidance

The audit committee is directly responsible for appointing, compensating, and overseeing the work of public accounting firms hired to audit the organization. [§ 78j-1(m)(2), Securities Exchange Act of 1934]