4. Strategic Planning Issues

Question 1

Why does an auditor need to obtain an understanding of the expertise of the auditor’s specialist?

Answer 1

1) determine the nature, scope, and objectives of the work
2) evaluate the adequate of the work for the auditor’s purpose

Question 2

Who is a management’s specialist?

Answer 2

An individual or organization possessing expertise in a field other than accounting or auditing.

Question 3

When may an auditor refer to an auditor’s external specialist?

Answer 3

Only when the opinion is modified.

Question 4

If an auditor plans to use the work of internal auditor’s what needs to be established?

Answer 4

Competence and objectivity.

Question 5

What can help an auditor determine the existence of related parties and also the understanding of an entity’s internal controls surrounding related-party transactions?

Answer 5

Evaluating the entity’s procedures for identifying related-party transactions