Summary of Auditing Standards 620 Using the work of Expert

Summary of Auditing Standards 620 Using the work of Expert

a. An expert is person who possesses special skill, knowledge and experience in a particular

field, other than accounting and auditing

b. Determining the need to use the work of an expert­ Materiality or Complexity of an item..

c. Pre ­ Precautions: Whenever an auditor decides to rely on the work of an expert he should

satisfy himself regarding the experts skill and competence by considering his professional

qualification, experience and reputation in the field in which the auditor is seeking evidence.

d. Post ­ Precautions: The auditor should seek reasonable assurance that the expert's work

constitutes appropriate audit evidence in support of the financial information. For this

purpose, the auditor should consider whether the expert has used the source data, which

are appropriate in the given circumstances. He should also obtain in writing, the various

assumption and methods used by the expert to determine that they are reasonable.

e. Even after performing necessary audit procedures, the auditor concludes, that the work of the

expert is inconsistent with the information in the financial statement or the work of expert does

not constitute appropriate audit evidence, he should express a qualified opinion, a disclaimer of

opinion or an adverse opinion, as appropriate.

f. Reference to Expert in an Audit Report – In case of Qualified Opinion, the work of that expert

may be referred to / described

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