Procedures in Evaluating the Work of Expert

The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial information.  Therefore he must consider the source data utilized and whether it is suitable in the circumstances, the method used and the assumptions and their consistency along with prior duration and the results of the expert's work in the light of the auditor's overall knowledge of the results and business of his other audit process.  So he should satisfy himself which the substance of the expert's finding is appropriately reflected in the financial information.  How reasonable and suitable the assumptions and methods utilized are and how they have been applied that is the expert's responsibility. 

Such the auditor does not have the similar expertise so he cannot forever challenge the expert's assumptions and methods.  Although the auditor is not an expert on the expert's field of specialist, the auditor must be able to determine what is reasonable and what is not.  Therefore he must obtain an understanding of the assumptions and the methods to determine that they are reasonable.  There are times when the work of the expert does not support the related representations in the financial statements then the auditor should attempt to resolve the inconsistency by holding discussions with the client and the expert.  He may need to engage another expert in resolving the inconsistency.