Which of the following should the chief audit executive agree upon with the board before starting an external assessment of the internal audit function?

According to the IIA's International Standards for the Professional Practice of Internal Auditing, the chief audit executive (CAE) must discuss and agree upon several key aspects of an external assessment with the board. The most critical of these is the qualifications and independence of the external assessor or assessment team. This ensures the board has confidence in the credibility, competence, and objectivity of the review, which is fundamental to the value of the entire external assessment process. The board's primary concern is the quality and reliability of the assessment outcome.

A. The audit areas to be reviewed are part of the assessment's scope, which is important, but secondary to first agreeing on a qualified and independent assessor.
B. The level of testing is a detailed methodological point typically determined by the assessor, not a high-level strategic point for agreement with the board.
D. The specific skills of each team member are too granular for board-level agreement; the board is concerned with the overall qualifications of the team.

1. The Institute of Internal Auditors (IIA). (2017). International Standards for the Professional Practice of Internal Auditing (Standards). Standard 1312: External Assessments. The standard explicitly states, "The chief audit executive must discuss with the board: ... The qualifications and independence of the external assessor or assessment team, including any potential conflict of interest."