ASA 620 - Using the Work of an Expert - April 2006
Competence and Objectivity of the ExpertCompetence and Objectivity of the Expert
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Competence and Objectivity of the Expert
12 When planning to use the work of an expert, the auditor shall evaluate the professional competence of the expert.
13 The auditor would ordinarily consider the expert’s:
(a) professional certification or licensing by, or membership in, an appropriate professional body; and
(b) experience and reputation in the field in which the auditor is seeking audit evidence.
14 The auditor shall evaluate the objectivity of the expert.
15 The risk that an expert’s objectivity will be impaired increases when the expert is:
(a) employed by the entity; or
(b) related in some other manner to the entity, for example by being financially dependent upon or having an investment in the entity.
If the auditor is concerned regarding the competence or objectivity of the expert, the auditor would ordinarily discuss any reservations with management and consider whether sufficient appropriate audit evidence can be obtained concerning the work of an expert. The auditor may need to undertake additional audit procedures or seek audit evidence from another expert (after taking into account the factors in paragraph 11 of this Auditing Standard).
16 Where an expert is employed by or related to the entity, the auditor would ordinarily consider whether there are any mitigating factors such as professional and/or statutory obligations governing the work of an expert, that would impact on the objectivity of the expert. For example it is common practice for the actuary of a life insurance company to be an employee.