Determining the Need to Use the Work of Determining the Need to Use the Work of an Expert

Determining the Need to Use the Work of an Expert

10 In obtaining an understanding of the entity and performing further procedures in response to assessed risks, the auditor may need to obtain, in conjunction with the entity or independently, audit evidence in the form of reports, opinions, valuations and statements of an expert. Examples include the following:

• valuations of certain types of assets, for example land and buildings, plant and machinery, works of art and precious stones;
• determination of quantities or physical condition of assets, for example minerals stored in stockpiles, underground mineral and petroleum reserves and the remaining useful life of plant and machinery;
• determination of amounts using specialised techniques or methods, for example an actuarial valuation;
• the measurement of work completed and to be completed on contracts in progress; and
• legal opinions concerning interpretations of agreements, statutes and regulations.

11 When determining the need to use the work of an expert, the auditor would ordinarily consider:

(a) the engagement team’s knowledge and previous experience of the matter being considered;

(b) the risk of material misstatement based on the nature, complexity, and materiality of the matter being considered; and

(c) the quantity and quality of other audit evidence expected to be obtained.