Auditor expert definitionAn 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. An auditor’s expert may be either an auditor’s internal expert who is a partner or staff, including temporary staff, of the auditor’s firm or a network firm, or an auditor’s external expert. Show
Scope of this ISA 620ISA 620 deals with the auditor’s responsibilities relating to the work of an individual or organization in a field of expertise other than accounting or auditing, when that work is used to assist the auditor in obtaining sufficient appropriate audit evidence. The Auditor’s Responsibility for the Audit OpinionThe auditor has sole responsibility for the audit opinion expressed, and that responsibility is not reduced by the auditor’s use of the work of an auditor’s expert. Nonetheless, if the auditor using the work of an auditor’s expert, having followed this ISA, concludes that the work of that expert is adequate for the auditor’s purposes, the auditor may accept that expert’s findings or conclusions in the expert’s field as appropriate audit evidence. Effective Date on or after 15 December 2009ObjectiveThe objectives of the auditor are:
DefinitionsFor definitions refer definitions section. RequirementsDetermining the Need for an Auditor’s ExpertIf expertise in a field other than accounting or auditing is necessary to obtain sufficient appropriate audit evidence, the auditor shall determine whether to use the work of an auditor’s expert. Nature, Timing and Extent of Audit ProceduresIn determining the nature, timing and extent of those procedures, the auditor shall consider matters including;
The Competence, Capabilities and Objectivity of the Auditor’s ExpertThe auditor shall evaluate whether the auditor’s expert has the necessary competence, capabilities and objectivity for the auditor’s purposes. In the case of an auditor’s external expert, the evaluation of objectivity shall include 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 ExpertThe auditor shall obtain a sufficient understanding of the field of expertise of the auditor’s expert to enable the auditor to;
Agreement with the Auditor’s ExpertThe auditor shall agree, in writing when appropriate, on the following matters with the auditor’s expert:
Evaluating the Adequacy of the Auditor’s Expert’s WorkThe auditor shall evaluate the adequacy of the auditor’s expert’s work for the auditor’s purposes, including:
If the auditor determines that the work of the auditor’s expert is not adequate for the auditor’s purposes, the auditor shall:
Reference to the Auditor’s Expert in the Auditor’s ReportThe auditor shall not refer to the work of an auditor’s expert in an auditor’s report containing an unmodified opinion unless required by law or regulation to do so. If such reference is required by law or regulation, the auditor shall indicate in the auditor’s report that the reference does not reduce the auditor’s responsibility for the auditor’s opinion. If the auditor makes reference to the work of an auditor’s expert in the auditor’s report because such reference 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. When determining the need to use the work of an expert the auditor would consider the following?When determining the need to use the work of an expert, the auditor would consider: The engagement team's knowledge and previous experience of the matter being considered; The risk of material misstatement based on the nature, complexity, and materiality of the matter being considered; and.
What should the auditor consider before relying on the work of an expert?The auditor should evaluate the objectivity of the expert.
If the auditor is concerned regarding the competence or objectivity of the expert, the auditor needs to discuss any reservations with management and consider whether sufficient appropriate audit evidence can be obtained concerning the work of an expert.
When may the auditor refer to an experts work in the audit report?An auditor's external expert is not a member of the engagement team. 14. The auditor shall not refer to the work of an auditor's expert in an auditor's report containing an unmodified opinion unless required by law or regulation to do so.
When might an auditor use an expert opinion?On a more basic level, where companies own expensive jewellery, works of art or antiques – either as trading or as investment assets – auditors may need to rely on the opinion of their own experts if they do not have other sufficient appropriate evidence to support 'valuation' assertions made by management.
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