Reporting Detailed vedio 1

Question 1

What are the factors that has to be looked out for relying on the work of an expert

Answer 1

Their professional competence
are they qualified?
are they independent of the clinent
Do they have the necessary resources to carry out the work reliably?
do they follow the reuired rules and regulations and have controls in place

Question 2

Hopw to evaluate the adequancy of the work

Answer 2

The relevance and reliability of the work done by them and compare it and determine if it is consistent with other audit findings, based on the overall understanding of the business.
If the work inckuded a significant assumptions asses whether the assumptions are valid and reasonableness.

Question 3

Factors to consider when service organisation work is used by the client

Answer 3

The importance of the work exceeded,
weather the service organisation is

Question 4

Difference between type 1 and type 2 report from a service organisation

Answer 4

A Type 1 report evaluates the design and implementation of internal controls at a specific point in time. A Type 2 report goes further by assessing both the design and implementation, as well as the operating effectiveness of controls over a specified period.

Question 5

How to account for a non adjusting even, but that impacts going forward.