Which body is responsible for hiring the external auditor according to fiduciary responsibility?

The Board of Directors is ultimately responsible for hiring the external auditor due to their fiduciary responsibility to oversee the financial health and operations of the organization. This responsibility ensures that the organization maintains transparency and accountability in its financial reporting. The Board's role in this process typically includes approving the selection of the auditor and ensuring that they operate independently of management, which helps to safeguard against any potential conflicts of interest.

While the CFO and the Finance Department may have a role in recommending or facilitating the hiring process, it is the Board of Directors that has the authority to make the final decision. The Audit Committee, while it plays a critical role in overseeing the audit process and the performance of the external auditor, ultimately reports to the Board and does not hold the final decision-making power. Thus, the Board of Directors is the correct answer as it embodies the overarching fiduciary responsibility required for this important function.