[4] The CAE should be independent in the performance of their duties, so that they can carry out their work freely without admitting interference, and as objectively as possible.
Independence permits them to render impartial and unbiased judgements, which are essential to the proper evaluation of management and controls.
The audit committee should have sole competence for the final decision on appointment and dismissal of the CAE”, and for his remuneration, activity appraisal and career advancement.
The typical risk is that the audit's budget subject to the approval of director of HR and of the DG is a source of potential interference or friendly pressure to self-limit the CAE’s critic exercise of an independent viewpoint.
Supervision is a process begins with planning and continues throughout the examination, evaluation, communication, and follow-up phases of the engagement.
Inform the Audit Committee without delay of any issue of risk, control or management practice that may be of significance.
Critical issues typically have a reasonable likelihood of causing substantial financial or reputational damage to the company.
Such reporting is critical to ensure the function is respected, that the proper "tone at the top" exists in the organization, and to expedite resolution of such issues.
It is a matter of considerable judgement to select appropriate issues for the audit committee's attention and to describe them in the proper context.
Various consulting and public accounting firms perform research on audit committees, to provide benchmarking data.