Using the Work of an Auditor's Expert

CAS 620

Using the Work of an Auditor's Expert

CAS 620

Definitions
  • Auditor’s expert – 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
Determining the Need for an Auditor's Expert
  • If expertise in a field other than accounting or auditing is necessary to obtain sufficient appropriate audit evidence, determine whether to use the work of an auditor’s expert
The Competence, Capabilities and Objectivity of the Auditor's Expert
  • Evaluate whether the auditor’s expert has the necessary competence, capabilities and objectivity for the auditor’s purposes
  • If the auditor uses an external expert (i.e. someone outside the firm), make an inquiry regarding interests and relationships that may create a threat to that expert’s objectivity
Obtaining an Understanding of the Field of Expertise of the Auditor's Expert
  • Obtain an understanding of the field of expertise of the auditor’s expert to enable the auditor to:
    • Determine the nature, scope and objectives of that expert’s work for the auditor’s purposes; and
    • Evaluate the adequacy of that work for the auditor’s purposes
Agreement with the Auditor's Expert
  • Get an agreement in writing with the auditor’s expert on the following matters:
    • The nature, scope and objectives of that expert’s work
    • The roles and responsibilities of the auditor and that expert
    • The nature, timing and extent of communication between the auditor and that expert
    • The form of any report to be provided by that expert
    • The need for the auditor’s expert to observe confidentiality requirements
Evaluating the Adequacy of the Auditor's Expert's Work
  • Evaluate the adequacy of the auditor’s expert’s work, including:
    • The relevance and reasonableness of that expert’s findings or conclusions, and their consistency with other audit evidence
    • If that expert’s work involves use of significant assumptions and methods, the relevance and reasonableness of those assumptions and methods
    • If that expert’s work involves the use of source data that is significant to that expert’s work, the relevance, completeness, and accuracy of that source data
  • If the auditor determines that the work of the auditor’s expert is not adequate, agree with that expert on the nature and extent of further work to be performed by that expert or perform additional audit procedures
Nature, Timing and Extent of Audit Procedures
  • In determining the nature, timing and extent of procedures to follow when using an audit expert, consider the following:
    • The nature of the matter to which that expert’s work relates
    • The risks of material misstatement in the matter to which that expert’s work relates
    • The significance of that expert’s work in the context of the audit
    • The auditor’s knowledge of and experience with previous work performed by that expert
    • Whether that expert is subject to the auditor firm’s quality control policies and procedures
Reference to the Auditor's Expert in the Auditor's Report
  • Do not refer to the work of an auditor’s expert in the audit report with an unmodified opinion
  • If the auditor makes reference to the work of an auditor’s expert because it is relevant to an understanding of a modification to the auditor’s opinion, the auditor shall indicate in the auditor’s report that such reference does not reduce the auditor’s responsibility for that opinion

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