Evaluating the Work of the ExpertEvaluating the Work of the Expert

Evaluating the Work of the Expert

19 The auditor shall evaluate the appropriateness of the expert’s work as audit evidence regarding the assertion being considered.

20 The auditor would ordinarily evaluate whether the substance of the expert’s findings is properly reflected in the financial report or supports the assertions, and consideration of:

• source data used;
• assumptions and methods used and their consistency with prior periods; and
• results of the expert’s work in the light of the auditor’s overall knowledge of the business and the results of other audit procedures.

21 When considering whether the expert has used source data which is appropriate in the circumstances, the auditor would ordinarily consider the following procedures:

(a) making enquiries regarding any procedures undertaken by the expert to establish whether the source data is relevant and reliable; and

(b) reviewing or testing the data used by the expert.

22 The appropriateness and reasonableness of assumptions and methods used and their application are the responsibility of the expert. The auditor does not have the same expertise and, therefore, cannot always challenge the expert’s assumptions and methods. However, the auditor will ordinarily need to obtain an understanding of the assumptions and methods used and to consider whether they are appropriate and reasonable, based on the auditor’s knowledge of the business and the results of other audit procedures.

23 If the results of the expert’s work do not provide sufficient appropriate audit evidence, or if the results are not consistent with other audit evidence, the auditor shall resolve the matter.

24 This may involve discussions with the entity and the expert, applying additional audit procedures, including possibly engaging another expert, or modifying the auditor’s report.