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Questions and Answers
When engaging an expert for the audit, the expert may be engaged by:
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?
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?
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?
In the context of auditing, when might an expert's opinion be required?
In a group audit, the consideration to use the work of another auditor is governed by which ISA?
In a group audit, the consideration to use the work of another auditor is governed by which ISA?
Which type of stocks might require the involvement of a geologist in the audit process?
Which type of stocks might require the involvement of a geologist in the audit process?
When engaging an expert for the audit, the expert may be engaged by:
When engaging an expert for the audit, the expert may be engaged by:
Which type of stocks might require the involvement of a geologist in the audit process?
Which type of stocks might require the involvement of a geologist in the audit process?
Which ISA deals with the consideration of the work of an internal auditor?
Which ISA deals with the consideration of the work of an internal auditor?
In the context of auditing, when might an expert's opinion be required?
In the context of auditing, when might an expert's opinion be required?
What is the purpose of ISA 620?
What is the purpose of ISA 620?
When engaging an expert for the audit, who may engage the expert?
When engaging an expert for the audit, who may engage the expert?
In a group audit, which ISA governs the consideration to use the work of another auditor?
In a group audit, which ISA governs the consideration to use the work of another auditor?
When might an expert's opinion be required in the audit process?
When might an expert's opinion be required in the audit process?
What are the main areas where an expert may be engaged by the entity?
What are the main areas where an expert may be engaged by the entity?
What are the three ISAs discussed in the text regarding the use of work of others in auditing?
What are the three ISAs discussed in the text regarding the use of work of others in auditing?
Give an example of a situation where an expert's opinion might be required in the audit process.
Give an example of a situation where an expert's opinion might be required in the audit process.
Who may engage an expert for the audit according to the text?
Who may engage an expert for the audit according to the text?
What are the main learning objectives discussed in the text?
What are the main learning objectives discussed in the text?
Provide an example of an expert that may be engaged by the entity for the audit.
Provide an example of an expert that may be engaged by the entity for the audit.
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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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