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Bill Co
“(ii) Critical evaluation of audit planning and risk assessment”“However, Bill Co has recently employed a newly qualified architect, who will be happy to provide us with evidence concerning the stage of completion of each property development contract at the year end. Using this person to produce a report on all properties being developed will save time and costs.”
1. The expert is an employee of the audit client,should it be management expert or the auditor expert?
2.”It is crucial that the audit firm engages an independent expert to provide evidence for this significant area”
As the expert is not independent ,in this case, therefore the auditor should find another expert and therefore reject the recommendation of Bill Co?
1. If employed/sub-contracted by management it must be management’s
2. I have not looked at either Q or A but it is never crucial to engage an independent (auditor’s) expert solely on the grounds that management’s expert is no independent by virtue of their employment.
Please refer to Chapter 16 of the notes – the auditor must assess 3 things before placing reliance on an expert.
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