Using the Work of a "Specialist"

Question 1

What are the objectives to determining if a Specialist is needed?

Answer 1

1 Whether to use the work of an auditor’s specialist

2 Whether the work of the auditor’s specialist is adequate for the auditor’s purposes

Question 2

What’s an Auditor’s Specialist?

Answer 2

An individual or organization possessing expertise in a field other than accounting or auditing, whose work in that field is used by the auditor to assist the AUDITOR in obtaining sufficient appropriate audit evidence

Question 3

What’s a Manager’s Specialist?

Answer 3

An individual or organization possessing expertise in a field other than accounting or auditing, whose work in that field is used by the ENTITY to assist the entity in preparing the financial statements

Question 4

NOTE

Answer 4

The auditor is still responsible for the expressed opinion, so the auditor’s responsibility is not reduced by using the work of an auditor’s specialist

Question 5

What are the basic Requirements of the Auditor with Respect to Using an Auditor’s Specialist?

Answer 5

1 Determining the Need
2 The competence, Capabilities, and Objectivity of the Specialist
3 Obtaining an Understanding of the Field of Expertise
4 Agreement with the Auditor’s Specialist
5 Evaluating the Adequacy of the Work
6 If the Work is not Adequate

Question 6

When is the Reference to the Auditor’s Specialist in the Auditor’s Report?

Answer 6

If the auditor’s report contains an unmodified opinion, the auditor should not refer to the work of an auditor’s specialist however if the auditor’s report contains a modified opinion and the auditor believes that it would help readers understand the reason for the modification