Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p11
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 11/17)
Character Range: 35670–38669

within it that are relevant to the audit (see paragraph A17).

           * Whether any professional or other standards and regulatory or legal requirements apply.

           * What assumptions and methods, including models where applicable, are used by the auditor's expert, and whether they are generally accepted within that expert's field and appropriate for financial reporting purposes.

           * The nature of internal and external data or information the auditor's expert uses.

Agreement with the Auditor's Expert (Ref: Para. 11)

A23.         The nature, scope and objectives of the auditor's expert's work may vary considerably with the circumstances, as may the respective roles and responsibilities of the auditor and the auditor's expert, and the nature, timing and extent of communication between the auditor and the auditor's expert.  It is therefore required that these matters are agreed between the auditor and the auditor's expert regardless of whether the expert is an auditor's external expert or an auditor's internal expert.

A24.         The matters noted in paragraph 8 may affect the level of detail and formality of the agreement between the auditor and the auditor's expert, including whether it is appropriate that the agreement be in writing.  For example, the following factors may suggest the need for more a detailed agreement than would otherwise be the case, or for the agreement to be set out in writing:

           * The auditor's expert will have access to sensitive or confidential entity information.

           * The respective roles or responsibilities of the auditor and the auditor's expert are different from those normally expected.

           * Multi-jurisdictional legal or regulatory requirements apply.

           * The matter to which the auditor's expert's work relates is highly complex.

           * The auditor has not previously used work performed by that expert.

           * The greater the extent of the auditor's expert's work, and its significance in the context of the audit.

A25.         The agreement between the auditor and an auditor's external expert is often in the form of an engagement letter.  Appendix 1 lists matters that the auditor may consider for inclusion in such an engagement letter, or in any other form of agreement with an auditor's external expert.

A26.         When there is no written agreement between the auditor and the auditor's expert, evidence of the agreement may be included in, for example:

           * Planning memoranda, or related working papers such as the audit program.

           * The policies or procedures of the auditor's firm's system of quality management.  In the case of an auditor's internal expert, the firm's system of quality management may include policies or procedures relating to the expert's work.  The extent of documentation in the auditor's working papers depends on the nature of such policies or procedures.  For example, no documentation may be required in