Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p13
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 13/17)
Character Range: 41187–44516

for the confidentiality provisions of relevant ethical requirements that apply to the auditor also to apply to the auditor's expert.  Additional requirements may be imposed by law or regulation.  The entity may also have requested that specific confidentiality provisions be agreed with auditor's external experts.

Evaluating the Adequacy of the Auditor's Expert's Work (Ref: Para. 12)

A32.         The auditor's evaluation of the auditor's expert's competence, capabilities and objectivity, the auditor's familiarity with the auditor's expert's field of expertise, and the nature of the work performed by the auditor's expert affect the nature, timing and extent of audit procedures to evaluate the adequacy of that expert's work for the auditor's purposes.

The Findings and Conclusions of the Auditor's Expert (Ref: Para. 12(a))

A33.         Specific procedures to evaluate the adequacy of the auditor's expert's work for the auditor's purposes may include:

           * Enquiries of the auditor's expert.

           * Reviewing the auditor's expert's working papers and reports.

           * Corroborative procedures, such as:

               * Observing the auditor's expert's work;

               * Examining published data, such as statistical reports from reputable, authoritative sources;

               * Confirming relevant matters with third parties;

               * Performing detailed analytical procedures; and

               * Re-performing calculations.

           * Discussion with another expert with relevant expertise when, for example, the findings or conclusions of the auditor's expert are not consistent with other audit evidence.

           * Discussing the auditor's expert's report with management.

A34.         Relevant factors when evaluating the relevance and reasonableness of the findings or conclusions of the auditor's expert, whether in a report or other form, may include whether they are:

           * Presented in a manner that is consistent with any standards of the auditor's expert's profession or industry;

           * Clearly expressed, including reference to the objectives agreed with the auditor, the scope of the work performed and standards applied;

           * Based on an appropriate period and take into account subsequent events, where relevant;

           * Subject to any reservation, limitation or restriction on use, and if so, whether this has implications for the auditor; and

           * Based on appropriate consideration of errors or deviations encountered by the auditor's expert.

Assumptions, Methods and Source Data

Assumptions and Methods (Ref: Para. 12(b))

A35.         When the auditor's expert's work is to evaluate underlying assumptions and methods, including models where applicable, used by management in developing an accounting estimate, the auditor's procedures are likely to be primarily directed to evaluating whether the auditor's expert has adequately reviewed those assumptions and methods.  When the auditor's expert's work is to develop an auditor's point estimate or an auditor's range for comparison with management's point estimate, the auditor's procedures may be primarily directed to evaluating the assumptions and methods, including models where appropriate, used by the auditor's expert.

A36.         ASA 540[16]