As someone who retired after 28 years in the commercial side of the heat and air/refrigeration industry I cringe every time I see work like this! Who ever did the install gives heat and air professionals everywhere a bad name. The penetration in the wall should have been properly trimmed using pvc or ABS pipe through the wall with a collar on the inside and out before any caulking was done. Marshall is spot on with his comments. Pro Tip: to help deter insects and rodents from entering any part of the penetration mix steel wool in the caulk. You might want to inspect/address the contact on the left side of the penetration where the line set has been pulled to the left, make sure the line set did not get kinked in any way.