Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p15
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 15/17)
Character Range: 46991–49990

with ASA 705 because the auditor has not obtained sufficient appropriate audit evidence.[17]

Reference to the Auditor's Expert in the Auditor's Report (Ref: Para. 14-15)

A41.         In some cases, law or regulation may require a reference to the work of an auditor's expert, for example, for the purposes of transparency in the public sector.

A42.         It may be appropriate in some circumstances to refer to the auditor's expert in an auditor's report containing a modified opinion, to explain the nature of the modification.  In such circumstances, the auditor may need the permission of the auditor's expert before making such a reference.

Appendix 1

(Ref: Para. A25)

Considerations for Agreement between the Auditor and an Auditor's External Expert

This Appendix lists matters that the auditor may consider for inclusion in any agreement with an auditor's external expert.  The following list is illustrative and is not exhaustive; it is intended only to be a guide that may be used in conjunction with the considerations outlined in this Auditing Standard.  Whether to include particular matters in the agreement depends on the circumstances of the engagement.  The list may also be of assistance in considering the matters to be included in an agreement with an auditor's internal expert.

Nature, Scope and Objectives of the Auditor's External Expert's Work

      * The nature and scope of the procedures to be performed by the auditor's external expert.

      * The objectives of the auditor's external expert's work in the context of materiality and risk considerations concerning the matter to which the auditor's external expert's work relates, and, when relevant, the applicable financial reporting framework.

      * Any relevant technical performance standards or other professional or industry requirements the auditor's external expert will follow.

      * The assumptions and methods, including models where applicable, the auditor's external expert will use, and their authority.

      * The effective date of, or when applicable the testing period for, the subject matter of the auditor's external expert's work, and requirements regarding subsequent events.

The Respective Roles and Responsibilities of the Auditor and the Auditor's External Expert

      * Relevant auditing and accounting standards, and relevant regulatory or legal requirements.

      * The auditor's external expert's consent to the auditor's intended use of that expert's report, including any reference to it, or disclosure of it, to others, for example reference to it in the basis for a modified opinion in the auditor's report, if necessary, or disclosure of it to management or an audit committee.

      * The nature and extent of the auditor's review of the auditor's external expert's work.

      * Whether the auditor or the auditor's external expert will test source data.

      * The auditor's external expert's access to the entity's records, files, personnel and to experts