Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p9
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 9/17)
Character Range: 29885–33138

through monitoring processes.

           * Agreement with the auditor's expert.

     Matters that the auditor may take into account when determining whether to depend on the firm's policies or procedures are described in ASA 220.[15] Depending on the firm's policies or procedures does not reduce the auditor's responsibility to meet the requirements of this Auditing Standard.

The Competence, Capabilities and Objectivity of the Auditor's Expert (Ref: Para. 9)

A14.         The competence, capabilities and objectivity of an auditor's expert are factors that significantly affect whether the work of the auditor's expert will be adequate for the auditor's purposes.  Competence relates to the nature and level of expertise of the auditor's expert.  Capability relates to the ability of the auditor's expert to exercise that competence in the circumstances of the engagement.  Factors that influence capability may include, for example, geographic location, and the availability of time and resources.  Objectivity relates to the possible effects that bias, conflict of interest, or the influence of others may have on the professional or business judgement of the auditor's expert.

A15.         Information regarding the competence, capabilities and objectivity of an auditor's expert may come from a variety of sources, such as:

           * Personal experience with previous work of that expert.

           * Discussions with that expert.

           * Discussions with other auditors or others who are familiar with that expert's work.

           * Knowledge of that expert's qualifications, membership of a professional body or industry association, licence to practice, or other forms of external recognition.

           * Published papers or books written by that expert.

           * The auditor's firm's system of quality management (see paragraphs A11-A13).

A16.         Matters relevant to evaluating the competence, capabilities and objectivity of the auditor's expert include whether that expert's work is subject to technical performance standards or other professional or industry requirements, for example, ethical standards and other membership requirements of a professional body or industry association, accreditation standards of a licensing body, or requirements imposed by law or regulation.

A17.         Other matters that may be relevant include:

           * The relevance of the auditor's expert's competence to the matter for which that expert's work will be used, including any areas of specialty within that expert's field.  For example, a particular actuary may specialise in property and casualty insurance, but have limited expertise regarding pension calculations.

           * The auditor's expert's competence with respect to relevant accounting and auditing requirements, for example, knowledge of assumptions and methods, including models where applicable, that are consistent with the applicable financial reporting framework.

           * Whether unexpected events, changes in conditions, or the audit evidence obtained from the results of audit procedures indicate that it may be necessary to reconsider the initial evaluation of the competence, capabilities and objectivity of the auditor's expert