Relying on management/auditor expert

Question 1

Before relying on management expert auditor must…

Answer 1

Obtain understanding of their work

Evaluate competence l, capability & objectivity

Evaluate appropriate ness of using work as evidence for relevant assertion

Question 2

Relying on work of auditor expert

Evaluating competence

Answer 2

Personal experience of working with them

Published books

Discussion with expert / other auditors

Licences, qualifications, membership of prof body

Firms Quality control procedures

Question 3

Relying on auditor expert

Evaluating objectivity

Answer 3

Discuss with expert

• safeguards
• Personal, financial business interest in client

Obtain wrepn from expert

Enquire client known interest / relationship

Question 4

Define
- management expert

Auditor expert

Answer 4

M expert
Someone employed by /engaged by client) who has expertise to assist preparation fs

A expert

Someone employed by (engaged by) firm to obtain sufficient appropriate evidence

Question 5

Is use of auditor expert used in auditors report?

Answer 5

No

Maybe if modified opinion if relevant to understanding of modification

This does not diminish auditors responsibility for opinion
(A use professional jusdgement whether evidence produced by expert = s& approp)

Question 6

Relying on work of auditor expert

Auditor must evaluate if work = approp for audit

3 things to consider

Answer 6

SOURCE DATA - completeness & accuracy

SIgNiFICANT ASSUMPTIONS- reasonable as of

Reasonable as of findings and their consistency with other evidence

Question 7

Relying on work of auditor expert

Once considered competence and objectivity auditor must obtain written agreement from expert-4

Answer 7

Confidentiality - need for expert to observe

Communication- nature, timing & extent

Roles& responsibility - of auditor & expert

Nature, scope & Objectives of experts work