Table of Contents
When an auditor uses the work of an expert?
ISA 620, Using the Work of an Auditor’s Expert defines an auditor’s expert as: ‘An individual or organisation 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.
What should the auditor consider before relying on the work of an expert?
Before any work is performed by the expert the auditor should agree in writing:
- The nature, scope and objectives of the expert’s work;
- The roles and responsibilities of the auditor and the expert;
- The nature, timing and extent of communication between the two parties; and.
What is assessed by an auditors expert?
Matters relevant to evaluating the competence, capabilities and objectivity of the auditor’s expert include whether that expert’s work is subject to technical performance standards or other professional or industry requirements, for example, ethical standards and other membership requirements of a professional body or …
What is the role of an experts in an audit engagement involving specialized industry?
Linked to the previous matters, competence, audit planning and the specialised nature of some transactions and balances, the auditor may plan to use an auditor’s expert to obtain audit evidence. It is particularly important that the auditor evaluates the relevance and adequacy of the expert’s findings or conclusions.
What is auditor’s expert and management expert?
An auditor’s expert may be the auditor’s internal expert or an external expert. II. Management Expert – “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.
What is an auditors external expert?
(c) Auditor’s expert – An expert whose expertise is in a field other than accounting or auditing who is employed or engaged by the auditor. (d) Auditor’s external expert – An auditor’s expert who is engaged, not employed, by the auditor. An auditor’s external expert is not a member of the engagement team.
Why do auditors need to use or rely on expert for audit purpose?
An auditor’s expert may be needed to assist the auditor in one or more of the following: Obtaining an understanding of the entity and its environment, including its internal control. Identifying and assessing the risks of material misstatement.
What is a specialized audit?
A special audit is a tightly-defined audit that only looks at a specific area of an organization’s activities. This type of audit may be initiated by a government agency, but could be authorized by any entity, or even internally. Controls audits. Cost audits.
WHO IS auditor expert differentiate the two types of auditor expert?
A2. The risks of material misstatement may increase when expertise in a field other than accounting is needed for management to prepare the financial statements, for example, because this may indicate some complexity, or because management may not possess knowledge of the field of expertise.
What is a productivity audit?
A productivity audit determines management effectiveness and resource utilization efficiency and identifies the most promising areas for productivity improvement. these types of audits attempt to provide information that management needs for informed decision making.
How do you become a productive auditor?
As an auditor, you need to really focus on the task at hand….Increase Productivity While Auditing.
- Make Detailed Daily Lists.
- Organize Your Computer and Space.
- Prioritize Projects for Efficiency.
- Stay Focused and on Task.
What is the role of an Auditor’s expert?
Auditors are experts in accounting and auditing matters, but they are not reasonably expected to be experts in any other field. Therefore, in performing the audit works the auditor needs the assistance from an expert to assist the auditor in obtaining sufficient appropriate audit evidence. ISA 620 deals with using the work of an auditor’s expert.
Who is responsible for the audit opinion expressed in the audit?
The 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.
What happens if the auditor is not fully satisfied with the expert?
In the cases where the auditor is not fully satisfied with the work that had been carried out by the expert, it can be seen that they can then require additional work with the expert, or subsequently perform additional audit procedures.
What is an auditing specialist?
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.