When trust audits are outsourced to a third party, directors and senior management are relieved of their responsibilities to ensure an effective audit function. Is this statement true or false?

The statement is false because even when trust audits are outsourced to a third party, directors and senior management retain overall responsibility for ensuring that the audit function is effective. This means they must still oversee the auditing process, set expectations, and monitor the work of the third party to ensure compliance with applicable laws, regulations, and internal policies.

Outsourcing an audit does not absolve the organization's leadership from their fiduciary duties. Instead, it requires them to ensure that the outsourced party has the necessary expertise and resources to conduct a thorough audit. Additionally, management must be involved in reviewing and acting upon the findings of the audit to mitigate any risks that may arise.

In essence, while working with a third party can help provide expertise and additional oversight, it does not eliminate the accountability of directors and senior management to ensure that an effective audit is conducted. They remain ultimately responsible for the integrity and effectiveness of the audit process, regardless of whether it is conducted internally or outsourced.