Should external auditors verify that management acts on internal auditors' recommendations?

External auditors play a crucial role in assessing the overall governance and effectiveness of an organization’s internal controls. It is important for them to verify that management acts on internal auditors' recommendations because doing so provides insight into the organization's risk management and control environment.

When internal auditors identify areas for improvement or potential weaknesses, their recommendations are intended to enhance the organization's operations and compliance. If management follows through on these recommendations, it indicates a commitment to addressing issues highlighted in the internal audit process, strengthening internal controls, and minimizing risks.

The external auditor’s responsibility includes evaluating whether the organization's internal audit function is effective and whether it is being utilized appropriately by management. Hence, confirming that management acts on the recommendations made by internal auditors is essential in understanding the organizational dynamics and the effectiveness of the overall governance process.

In summary, external auditors monitoring the response of management to internal audit recommendations is a part of ensuring that the internal audit function is properly integrated within the organization and that it contributes positively to the organization's governance and risk management framework.