Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p3
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 3/17)
Character Range: 12943–16134

Expertise means skills, knowledge and experience in a particular field.

(c)                Management's expert means an individual or organisation possessing expertise in a field other than accounting or auditing, whose work in that field is used by the entity to assist the entity in preparing the financial report.

Requirements

Determining the Need for an Auditor's Expert

7.                   If expertise in a field other than accounting or auditing is necessary to obtain sufficient appropriate audit evidence, the auditor shall determine whether to use the work of an auditor's expert. (Ref: Para. A4-A9)

Nature, Timing and Extent of Audit Procedures

8.                   The nature, timing and extent of the auditor's procedures with respect to the requirements in paragraphs 9-13 of this Auditing Standard will vary depending on the circumstances.  In determining the nature, timing and extent of those procedures, the auditor shall consider matters including: (Ref: Para. A10)

(a)                The nature of the matter to which that expert's work relates;

(b)                The risks of material misstatement in the matter to which that expert's work relates;

(c)                The significance of that expert's work in the context of the audit;

(d)                The auditor's knowledge of and experience with previous work performed by that expert; and

(e)                Whether that expert is subject to the auditor's firm's system of quality management. (Ref: Para. A11-A13)

The Competence, Capabilities and Objectivity of the Auditor's Expert

9.                   The auditor shall evaluate whether the auditor's expert has the necessary competence, capabilities and objectivity for the auditor's purposes.  In the case of an auditor's external expert, the evaluation of objectivity shall include enquiry regarding interests and relationships that may create a threat to that expert's objectivity.
(Ref: Para. A14-A20)

Obtaining an Understanding of the Field of Expertise of the Auditor's Expert

10.               The auditor shall obtain a sufficient understanding of the field of expertise of the auditor's expert to enable the auditor to:
(Ref: Para. A21-A22)

(a)                Determine the nature, scope and objectives of that expert's work for the auditor's purposes; and

(b)                Evaluate the adequacy of that work for the auditor's purposes.

Agreement with the Auditor's Expert

11.               The auditor shall agree, in writing when appropriate, on the following matters with the auditor's expert: (Ref: Para. A23-A26)

(a)                The nature, scope and objectives of that expert's work;
(Ref: Para. A27)

(b)                The respective roles and responsibilities of the auditor and that expert; (Ref: Para. A28-A29)

(c)                The nature, timing and extent of communication between the auditor and that expert, including the form of any report to be provided by that expert; and (Ref: Para. A30)

(d)                The need for the auditor's expert to observe confidentiality requirements. (Ref: Para. A31)

Evaluating the Adequacy of the Auditor's Expert's Work

12.               The auditor shall evaluate