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Please tell which assertion is being tested in this-
Enquire of valuer about his qualification , experience in valuing similar assets and membership of a professional body to assess his competence and capability.NONE!
Not every audit action is to obtain evidence about an assertion. To be able to rely on an expert, the auditor has to assess competence and objectivity.
If the expert is a valuer then reviewing the expert’s finding against other available evidence would be relevant to valuation.
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So when I write this as a substantive procedure for revaluation then how this should be written ?
Evaluating the competence, capabilities and objective of an expert is an audit procedure – but not a substantive audit procedure.
Similarly, obtaining an understanding of the work of an expert is an audit procedure – but not a substantive audit procedure.
Evaluating the appropriateness of the expert’s work as audit evidence for the relevant assertion – this is substantive.
I don’t know what question you are trying to answer that makes you want to write something that is about obtaining and understanding and risk assessment as a substantive procedure.
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In kaplan exam kit q184 ELOUNDA its been asked to write substantive procedure for revaluation and in that answer the above point was given as a substantive procedure so I want to ask what assertion shall i write with it? plz tell
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