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Sir if question ask that describe the factors that company should consider when placing reliance in the work of independent expert (4 marks). Is writing the below answer fine?
If auditor relies on the work of expert, he should consider some factors like qualification, experience, objectivity of expert etc
ISA 620 requires the auditor to agree in writing the following with the auditor’s expert.
• Nature, scope and objectives of the work
• Respective roles and responsibilities of the auditor and the auditor’s expert
• Nature, timing and extent of communication between the auditor and the auditor’s expert, including the form of any report
• Confidentiality requirements
Any assumptions used by expert and relevance, completeness and accuracy of any source data used should also be considered.No.
You have written too much about making the arrangements. The question is reslly about qualifications, experience, independence and professionalism, all quickly dismissed in your first sentence.
Your last sentence is fine.
Sir, I have amended after your reply
If auditor relies on the work of expert, he should consider whether expert has necessary competence, capabilities and objectivity. He should consider nature, scope and objectives of the expert work .He should inquire interests and relationships that could create a threat to objectivity of expert. Any assumptions used by the expert and relevance, completeness and accuracy of any source data used should also be considered by the auditor
Is this one fine and sufficient for 4 marks?
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