Explain me SA 620 Work of an Auditor’s Expert

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 amit kahar asked over 3 years ago

Explain me SA 620 Work of an Auditor’s Expert

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered about 3 years ago

Dear Friend, **Scope of Standard on Auditing (SA) 620 Expert** 1. This Standard on Auditing (SA) deals with the auditor’s responsibilities regarding the use of an individual or organisation’s work in a field of expertise other than accounting or auditing, when that work is used to assist the auditor in obtaining sufficient appropriate audit evidence. 2. This SA does not deal with: (a) Situations where the engagement team includes a member with expertise in specialised area of accounting or auditing, which is dealt with in SA 220 (Revised); or (b) The auditor’s use of the work of an individual or organisation possessing expertise in a field other than accounting or auditing, whose work in that field is used by the entity to assist the entity in preparing the financial statements(a management’s expert), which is dealt with in SA 500 (Revised). **Objectives** (a) To determine whether to use the work of an auditor’s expert; and (b) If using the work of an auditor’s expert, to determine whether that work is adequate for the auditor’s purposes. **The Auditor’s Responsibility for the Audit Opinion** The auditor has sole responsibility for the audit opinion expressed, and that responsibility is not reduced by the auditor’s use of the work of an auditor’s expert. Nonetheless, if the auditor using the work of an auditor’s expert, having followed this SA, concludes that the work of that expert is adequate for the auditor’s purposes, the auditor may accept that expert’s findings or conclusions in the expert’s field as appropriate audit evidence. **Requirements Determining the Need for an Auditor’s Expert** If expertise in a field other than accounting or auditing is necessary to obtain sufficient appropriate audit evidence, the auditor shall determine whether to use the work of an auditor’s expert. **Nature, Timing and Extent of Audit Procedures** The nature, timing and extent of the auditor’s procedures with respect to the requirements in paragraphs 9-13 of this SA will vary depending on the circumstances. In determining the nature, timing and extent of those procedures, the auditor shall consider matters including (a) The nature of the matter to which that expert’s work relates; (b) The risks of material misstatement in the matter to which that expert’s work relates; (c) The significance of that expert’s work in the context of the audit; (d) The auditor’s knowledge of and experience with previous work performed by that expert; and (e) Whether that expert is subject to the auditor’s firm’s quality control policies and procedures. **The Competence, Capabilities and Objectivity of the Auditor’s Expert** 9. The auditor shall evaluate whether the auditor’s expert has the necessary competence, capabilities and objectivity for the auditor’s purposes. In the case of an auditor’s external expert, the evaluation of objectivity shall include inquiry regarding interests and relationships that may create a threat to that expert’s objectivity. **Obtaining an Understanding of the Field of Expertise of the Auditor’s Expert** 10. The auditor shall obtain a sufficient understanding of the field of expertise of the auditor’s expert to enable the auditor to: (a) Determine the nature, scope and objectives of that expert’s work for the auditor’s purposes; and (b) Evaluate the adequacy of that work for the auditor’s purposes.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 3 years ago

Dear amit kahar, Matter of SA 620: Using the Work of an Auditor’s Expert are as blow....... > SA 620: Using the Work of an Auditor’s Expert OBJECTIVES The objectives of the auditor are to determine whether to use the work of an auditor’s expert and if using the work of an auditor’s expert, to determine whether that work are adequate for the auditor’s purposes If expertise in a field other than accounting or auditing is necessary to obtain sufficient appropriate audit evidence, the auditor shall determine whether to use the work of an auditor’s expert EVALUATION OF AUDITOR’S EXPERT The auditor shall evaluate whether the auditor’s expert has the necessary competence, capabilities and objectivity for the auditor’s purposes. In the case of an auditor’s external expert, the evaluation of objectivity shall include inquiry regarding interests and relationships that may create a threat to that expert’s objectivity The auditor shall agree, in **writing** when appropriate, on the following matters with the auditor’s expert: 1.The nature, scope and objectives of that expert’s work; 2.The respective roles and responsibilities of the auditor and that expert; 3.The nature, timing and extent of communication between the auditor and that expert, including the form of any report to be provided by that expert; and 4.The need for the auditor’s expert to observe confidentiality requirements EVALUATION OF EXPERT’S WORK The auditor shall evaluate the adequacy of the auditor’s expert’s work for the auditor’s purposes, including: The relevance and reasonableness of that expert’s findings or conclusions, and their consistency with other audit evidence; If that expert’s work involves use of significant assumptions and methods, the relevance and reasonableness of those assumptions and methods in the circumstances; and If that expert’s work involves the use of source data that is significant to that expert’s work, the relevance, completeness, and accuracy of that source data RESPONSIBILITY The auditor shall not refer to the work of an auditor’s expert in an auditor’s report containing an unmodified opinion unless required by law or regulation to do so. If such reference is required by law or regulation, the auditor shall indicate in the auditor’s report that the reference does not reduce the auditor’s responsibility for the audit opinion Regards, Arjun Pratap Singh

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