MGAD10H3 Chapter 5: MGTD60 - Chapter 5 (Part II)
Document Summary
5-4 using the work of an expert. Expert someone with skills, knowledge, and experience required to aid the auditor when gathering sufficient appropriate evidence. An expert may be a member of the audit firm who is not a member of the audit team, an employee of the client, or a person independent of both the audit firm and the client. Auditors use experts for valuation for things such as real estate, works of art, collections, and jewelry, and actuaries to calculate liabilities related to employee future benefits and oil and gas reserves. An auditor first assesses whether an expert is required. Then, auditor determines the scope of work to be carried out by the expert, if he/she is needed. Auditor then assesses the expert"s competency and its work which will then be used as a base to form an audit opinion. 5-4-1 assessing the need to use an expert. The need to engage the services of an expert depends on:
