Using Work Of Management's Expert (1)

Question 1

What is an expoert?

Answer 1

An actuary or chartered surveyor to assist them in preparation of financial statements

Question 2

What is a management’s expert?

Answer 2

An individual or organisation possessing expertise in a field other field other than accounting or auditing, whose work in that field is used by entity to assist the enttiy in preparing FS

Question 3

What may auditor be able to use work of a management’s expert?

Answer 3

As audit evidence for the valuation of non-current assets as well as other areas of audit such as inventory valuation

Question 4

What does ISA 500 consider?

Answer 4

The use of a mangement’s expert by management

Question 5

What auditor must do if information used as audit evidence has been prepared by management expert? (Evaluate)

Answer 5

Evaluate competence, capability and objectivity of the expert

Question 6

What auditor must do if information used as audit evidence has been prepared by management expert? (Understanding)

Answer 6

Obtain an understanding of work done by the expert

Question 7

What auditor must do if information used as audit evidence has been prepared by management expert? (Appropriateness)

Answer 7

Evaluate appropriateness of work done as audit evidence

Question 8

What if auditor finds they are unable to rely on management’s expert?

Answer 8

Consider hiring their own expert to get audit evidence required