ASA 620 - Using the Work of an Expert - April 2006
Scope of the Expert’s WorkScope of the Expert’s Work
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Scope of the Expert’s Work
17 The auditor shall obtain sufficient appropriate audit evidence that the scope of the expert’s work is adequate for the purposes of the audit.
18 Audit evidence may be obtained through a review of the terms of reference which are often set out in written instructions from the entity to the expert. Such instructions to the expert may cover such matters as the following:
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the objectives and scope of the expert’s work;
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a general outline as to the specific matters the auditor expects the expert’s report to cover;
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the intended use by the auditor of the expert’s work, including the possible communication to third parties of the expert’s identity and extent of involvement;
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the extent of the expert’s access to appropriate records and files;
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clarification of the expert’s relationship with the entity, if any;
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confidentiality of the entity’s information; and
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information regarding the assumptions and methods intended to be used by the expert and their consistency with those used in prior periods.
In the event that these matters are not clearly set out in written instructions to the expert, the auditor may need to communicate with the expert directly to obtain audit evidence in this regard. In obtaining an understanding of the entity, the auditor also ordinarily considers whether to include the expert during the engagement team’s discussion of the susceptibility of the entity’s financial report to material misstatement.