The auditee determines the audit objectives.

The statement regarding whether the auditee determines the audit objectives is false. In the context of an audit, particularly when it pertains to the ISO/IEC 27001 framework, the audit objectives are typically established by the audit team or the organization conducting the audit, rather than the auditee.

The main focus of an audit is to assess compliance with standards and identify areas for improvement, which necessitates a level of objectivity and independence from the auditee. If the auditee were to set the objectives, there could be a conflict of interest, potentially leading to biased outcomes.

In external audits, audit objectives align with regulatory requirements, organizational policies, and standard criteria, which are defined by the auditors in consultation with relevant stakeholders. Conversely, internal audits may have specific objectives that are linked to organizational goals and risk management strategies; however, these are still often guided and defined by the audit team in order to maintain an independent perspective.

Furthermore, even though there may be some cases in internal audits where the auditee can provide input, the final determination of objectives should be made by the audit team to uphold the integrity and reliability of the audit process.