Advanced Audit
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Advanced Audit

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@WellRegardedAntigorite7032

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Questions and Answers

When engaging an expert for the audit, the expert may be engaged by:

  • The entity
  • The auditor
  • Both the entity and the auditor (correct)
  • An external regulatory body

    • In a group audit, the consideration to use the work of another auditor is governed by which ISA?

  • ISA 600 (correct)
  • ISA 610
  • ISA 630
  • ISA 620

    • Which ISA deals with the consideration of the work of an internal auditor?

  • ISA 620
  • ISA 600
  • ISA 630
  • ISA 610 (correct)

    • In the context of auditing, when might an expert's opinion be required?

    <p>Valuation of land and building</p> Signup and view all the answers

    In a group audit, the consideration to use the work of another auditor is governed by which ISA?

    <p>ISA 600</p> Signup and view all the answers

    Which type of stocks might require the involvement of a geologist in the audit process?

    <p>Granite stocks</p> Signup and view all the answers

    When engaging an expert for the audit, the expert may be engaged by:

    <p>Both the entity and the auditor</p> Signup and view all the answers

    Which type of stocks might require the involvement of a geologist in the audit process?

    <p>Mining stocks</p> Signup and view all the answers

    Which ISA deals with the consideration of the work of an internal auditor?

    <p>ISA 610</p> Signup and view all the answers

    In the context of auditing, when might an expert's opinion be required?

    <p>Valuation of land and building</p> Signup and view all the answers

    What is the purpose of ISA 620?

    <p>To use the work of an expert</p> Signup and view all the answers

    When engaging an expert for the audit, who may engage the expert?

    <p>Both the entity being audited and the auditor</p> Signup and view all the answers

    In a group audit, which ISA governs the consideration to use the work of another auditor?

    <p>ISA 600</p> Signup and view all the answers

    When might an expert's opinion be required in the audit process?

    <p>For valuation of land and building</p> Signup and view all the answers

    What are the main areas where an expert may be engaged by the entity?

    <p>Valuation of land and building, and quantity survey</p> Signup and view all the answers

    What are the three ISAs discussed in the text regarding the use of work of others in auditing?

    <p>ISA 600, ISA 610, ISA 620</p> Signup and view all the answers

    Give an example of a situation where an expert's opinion might be required in the audit process.

    <p>Valuation of land and building or valuation of work of arts</p> Signup and view all the answers

    Who may engage an expert for the audit according to the text?

    <p>The entity or the auditor</p> Signup and view all the answers

    What are the main learning objectives discussed in the text?

    <p>Understanding the use of work of other auditors, experts, and internal auditors; appreciating the contribution by other experts in completing the audit work; considering the importance of including other experts’ work in audit work</p> Signup and view all the answers

    Provide an example of an expert that may be engaged by the entity for the audit.

    <p>Chartered Valuer for the valuation of land and building, or valuation of work of arts</p> Signup and view all the answers

    Study Notes

    Engaging Experts in Audits

    • ISA 620 governs the use of experts during the audit process.
    • Management may engage an expert for the audit.
    • The auditor may also engage an expert.
    • The use of internal auditors is covered by ISA 610.
    • The use of other auditors in a group audit is covered by ISA 600.

    When Expert Opinions are Needed

    • An expert's opinion may be required in situations where the auditor lacks the necessary expertise.
    • This could include valuation of complex assets, determining the fair value of investments, or assessing environmental liabilities.

    Examples of Expertise

    • Geologist may be needed when auditing companies involved in mineral exploration or oil and gas extraction.
    • Actuaries may be needed when auditing insurance companies.
    • Environmental consultants may be needed when assessing environmental risks and liabilities.

    Key ISAs for Using the Work of Others

    • ISA 600 deals with using the work of another auditor in a group audit.
    • ISA 610 deals with using the work of internal auditors.
    • ISA 620 deals with using the work of experts in the audit process.

    Example of Expert Engagement

    • A company is acquiring another company.
    • The auditor may need to engage an expert valuer to assess the fair value of the acquired company.

    Learning Objectives

    • To understand the role of experts in audits.
    • To understand the criteria for engaging experts.
    • To understand the ISAs governing expert engagement.

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    Description

    Test your knowledge of advanced audit topics with this quiz on "Using the Work of Others." Explore the concepts of using the work of other auditors, experts, and internal auditors, and understand the importance of including their contributions in completing audit work.

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