Because board and audit committee oversight is an element of the control environment, according to COSO, the independent auditor is required to evaluate audit committee oversight effectiveness as an integral part of their assessment of the control environment and monitoring controls. This requirement of the auditor does not supplant the overall responsibility of the board of directors to evaluate audit committee effectiveness. The auditor’s responsibility, as articulated by the PCAOB in Auditing Standard No. 5, is also narrower than the requirements set forth in Sarbanes-Oxley and the NYSE and NASDAQ listing standards. 

This questionnaire provides a comprehensive approach to evaluating the effectiveness of an audit committee in overseeing financial reporting processes and internal controls.