Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p7
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 7/17)
Character Range: 24260–27384

the engagement where that expert is given all the relevant facts that will enable the expert to provide informed advice about the particular matter.[7]

           * Discussion with auditors who have performed similar engagements.

A8.             In other cases, however, the auditor may determine that it is necessary, or may choose, to use an auditor's expert to assist in obtaining sufficient appropriate audit evidence.  Considerations when deciding whether to use an auditor's expert may include:

           * Whether management has used a management's expert in preparing the financial report (see paragraph A9).

           * The nature and significance of the matter, including its complexity.

           * The risks of material misstatement in the matter.

           * The expected nature of procedures to respond to identified risks, including the auditor's knowledge of and experience with the work of experts in relation to such matters; and the availability of alternative sources of audit evidence.

A9.             When management has used a management's expert in preparing the financial report, the auditor's decision on whether to use an auditor's expert may also be influenced by such factors as:

           * 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.

           * The management's expert's competence and capabilities.

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

           * Any controls within the entity over the management's expert's work.

ASA 500[8] includes requirements and guidance regarding the effect of the competence, capabilities and objectivity of management's experts on the reliability of audit evidence.

Nature, Timing and Extent of Audit Procedures (Ref: Para. 8)

A10.         The nature, timing and extent of audit procedures with respect to the requirements in paragraphs 9-13 of this Auditing Standard will vary depending on the circumstances.  For example, the following factors may suggest the need for different or more extensive procedures than would otherwise be the case:

           * The work of the auditor's expert relates to a significant matter that involves subjective and complex judgements.

           * The auditor has not previously used the work of the auditor's expert, and has no prior knowledge of that expert's competence, capabilities and objectivity.

           * The auditor's expert is performing procedures that are integral to the audit, rather than being consulted to provide advice on an individual matter.

           * The expert is an auditor's external expert and is not, therefore, subject to the firm's system of quality management.

The Auditor's Firm's System of Quality Management (Ref: Para. 8(e))

A11.         An auditor's internal expert may be a partner