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.