Document ID: chunk:federal_register_of_legislation:F2022C01189:reg:7:p16
Version: federal_register_of_legislation:F2022C01189
Segment Type: reg
Provision Reference: reg 7 (pt 16/21)
Character Range: 52742–55986

audit evidence.

           * The nature, scope and objectives of the management's expert's work.

           * Whether the management's expert is employed by the entity, or is a party engaged by it to provide relevant services.

           * The extent to which management can exercise control or influence over the work of the management's expert.

           * Whether the management's expert is subject to technical performance standards or other professional or industry requirements.

           * The nature and extent of any controls within the entity over the management's expert's work.

           * The auditor's knowledge and experience of the management's expert's field of expertise.

           * The auditor's previous experience of the work of that expert.

The Competence, Capabilities and Objectivity of a Management's Expert (Ref: Para. 8(a))

A48.         Competence relates to the nature and level of expertise of the management's expert.  Capability relates to the ability of the management's expert to exercise that competence in the circumstances.  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 management's expert.  The competence, capabilities and objectivity of a management's expert, and any controls within the entity over that expert's work, are important factors in relation to the reliability of any information produced by a management's expert.

A49.         Information regarding the competence, capabilities and objectivity of a management'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 others who are familiar with that expert's work.

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

           * Published papers or books written by that expert.

           * An auditor's expert, if any, who assists the auditor in obtaining sufficient appropriate audit evidence with respect to information produced by the management's expert.

A50.         Matters relevant to evaluating the competence, capabilities and objectivity of a management'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.

A51.         Other matters that may be relevant include:

           * The relevance of the management'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