Procedures in computing the work of the expert, Auditing

Procedures in computing the work of the expert

The auditor must obtain reasonable assurance that the expert's work constitutes appropriate audit evidence in support of the financial information. He should thus consider the source data used and whether it is suitable in the circumstances, the assumptions and technique used and their consistency with prior periods and the results of the expert's work in the light of the auditor's overall knowledge of the business and the results of his other audit procedures. He should satisfy himself that the substance of the expert's finding is properly reflected in the financial information. How appropriate, reasonable the assumptions and methods used are and how they have been applied is the expert's responsibility. The auditor does not have the same expertise so he cannot always challenge the expert's assumptions and methods. Although the auditor is not an expert on the expert's field of speciality, the auditor must be able to determine what is reasonable and what is not. Hence he should acquire an understanding of the assumptions and the techniques to determine that they are reasonable. There are times when the work of the expert does not support the associated representations in the financial statements then the auditor must attempt to solve the inconsistency by holding discussions with the client and the expert. He might need to engage another expert in solving the inconsistency.

Posted Date: 12/4/2012 5:01:51 AM | Location : United States

Related Discussions:- Procedures in computing the work of the expert, Assignment Help, Ask Question on Procedures in computing the work of the expert, Get Answer, Expert's Help, Procedures in computing the work of the expert Discussions

Write discussion on Procedures in computing the work of the expert
Your posts are moderated
Related Questions
Problem: You are an auditor of a company which operates three large departmental stores at Grand Bay, Port Louis and Tamarin. You are preparing your audit plan and you are p

For each threat explain how it might be avoided.

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

Insurance Companies Authoritative documents involved as: The Insurance Act The Companies Act IFRS 4 Insurance Contracts The major legislation governing insu

e following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code has bee

It is a compulsory audit Completed by a CA. Finance Audit conduct by the CA to compliance the legal requirements of monitory issues.

State the FIVE threats contained within Auditor''s Code of Ethics and Conduct and for each threat list ONE example of a circumstance that may create the threat.

Government has recently set up a parastatal body responsible for waste management in Mauritius. The management is unsure as to the need for an audit and the setting up of an intern

The Business Risk Approach to Auditing In recent years the broader concept of business risk has been developed by the larger firms. It was the subject matter of the ICAEW audit