5.4 using work of expert

Question 1

when Using Work of an Expert?

Answer 1

when auditor does not have required knowledge skills or experience to assess validity of a trn or acc

Question 2

an Expert

Answer 2

someone with the required skills, knowledge and experience required to aid an auditor when gathering sufficient appropriate evidence

Question 3

Using Work of an Expert steps

Answer 3

1. assess whether an expert is required
2. determine the scope of work to be carried out
3. selecting auditor with competence, capability to complete the work and their objectivity

4 assess the work done

5. draw conclusion based on their assessment as the ultimate responsibility to design an opinion is that of the adtr

Question 4

assess whether an expert is required

Answer 4

1.when adtr require assistance in form of an expert opinion or corroborate other evidence found e.g appraiser for the value of property

2. this will depend pn the knowledge of the audit team, complexity of the matter being assessed and the availability of other appropriate evidence
3. the greater the risk of MM of the matter being assess, the greater likelihood to involve an expert
4. the less knowledge, the higher the risk of MM and the less corroborating evidence available he greater likelihood to involve an expert

Question 5

determine the scope of work to be carried out

Answer 5

1.the auditor should set out the nature, timing and extent of work carried out by expert

2.adtr should be involved as the judgement of expert is used as audit evidence required in forming the adtr opinion

3.should use written instructions to cover areas that the expert will report on and how the work used will be used by adtr

Question 6

selecting expert with competence, capability to complete the work

Answer 6

should consider capability to complete the work, evaluate qualifications, knowledge and experience.

objectivity of expert.should be independent to increase reliability of conclusion formed since adtr will depend on that to design their opinion

Question 7

assessing expert work done/report

Answer 7

1.expert should write report so that auditor who is not expert in the field can also undertand the technical content of the report

2. expert should detail every stage of the process to explain what helped them draw their conclusion. should also include data source and estimation models used

3, auditor consider consistency of assumption, conclusion and information from the expert work in relation to the entity

Question 8

draw conclusion based on their assessment as the ultimate responsibility

Answer 8

1.responsibilty of auditor to draw an opinion.

2. should determine the quality of the evidence provided by expert and whether it is reliable and objective