Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p12
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 12/17)
Character Range: 38410–41461

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 the auditor's working papers if the auditor's firm has detailed protocols covering the circumstances in which the work of such an expert is used.

Nature, Scope and Objectives of Work (Ref: Para. 11(a))

A27.         It may often be relevant when agreeing on the nature, scope and objectives of the auditor's expert's work to include discussion of any relevant technical performance standards or other professional or industry requirements that the expert will follow.

Respective Roles and Responsibilities (Ref: Para. 11(b))

A28.         Agreement on the respective roles and responsibilities of the auditor and the auditor's expert may include:

           * Whether the auditor or the auditor's expert will perform detailed testing of source data.

           * Consent for the auditor to discuss the auditor's expert's findings or conclusions with the entity and others, and to include details of that expert's findings or conclusions in the basis for a modified opinion in the auditor's report, if necessary (see paragraph A42).

           * Any agreement to inform the auditor's expert of the auditor's conclusions concerning that expert's work.

Working Papers

A29.         Agreement on the respective roles and responsibilities of the auditor and the auditor's expert may also include agreement about access to, and retention of, each other's working papers.  When the auditor's expert is a member of the engagement team, that expert's working papers form part of the audit documentation.  Subject to any agreement to the contrary, auditor's external experts' working papers are their own and do not form part of the audit documentation.

Communication (Ref: Para. 11(c))

A30.         Effective two-way communication facilitates the proper integration of the nature, timing and extent of the auditor's expert's procedures with other work on the audit, and appropriate modification of the auditor's expert's objectives during the course of the audit.  For example, when the work of the auditor's expert relates to the auditor's conclusions regarding a significant risk, both a formal written report at the conclusion of that expert's work, and oral reports as the work progresses, may be appropriate.  Identification of specific partners or staff who will liaise with the auditor's expert, and procedures for communication between that expert and the entity, assists timely and effective communication, particularly on larger engagements.

Confidentiality (Ref: Para. 11(d))

A31.         It is necessary 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