Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p4
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 4/17)
Character Range: 15855–19007

of any report to be provided by that expert; and (Ref: Para. A30)

(d)                The need for the auditor's expert to observe confidentiality requirements. (Ref: Para. A31)

Evaluating the Adequacy of the Auditor's Expert's Work

12.               The auditor shall evaluate the adequacy of the auditor's expert's work for the auditor's purposes, including: (Ref: Para. A32)

(a)                The relevance and reasonableness of that expert's findings or conclusions, and their consistency with other audit evidence; (Ref: Para. A33-A34)

(b)                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 (Ref: Para. A35-A37)

(c)                 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.
(Ref: Para. A38-A39)

13.               If the auditor determines that the work of the auditor's expert is not adequate for the auditor's purposes, the auditor shall: (Ref: Para. A40)

(a)                Agree with that expert on the nature and extent of further work to be performed by that expert; or

(b)                Perform additional audit procedures appropriate to the circumstances.

Reference to the Auditor's Expert in the Auditor's Report

14.               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 auditor's opinion. (Ref: Para. A41)

15.               If the auditor makes reference to the work of an auditor's expert in the auditor's report because such reference is relevant to an understanding of a modification to the auditor's opinion, the auditor shall indicate in the auditor's report that such reference does not reduce the auditor's responsibility for that opinion. (Ref: Para. A42)

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Application and Other Explanatory Material

Definition of an Auditor's Expert (Ref: Para. 6(a))

A1.             Expertise in a field other than accounting or auditing may include expertise in relation to such matters as:

           * The valuation of complex financial instruments, land and buildings, plant and machinery, jewellery, works of art, antiques, intangible assets, assets acquired and liabilities assumed in business combinations and assets that may have been impaired.

           * The actuarial calculation of liabilities associated with insurance contracts or employee benefit plans.

           * The estimation of oil and gas reserves.

           * The valuation of environmental liabilities, and site clean-up costs.

           * The interpretation of contracts, laws and regulations.

           * The analysis of complex or unusual tax compliance issues.

A2.             In many cases, distinguishing between expertise in accounting or auditing, and expertise in another