Annual Audit Manual
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3091 Introduction
Oct-2012
In This Section
Overview
This topic explains:
- The content of section 3090 to help navigate through this subsection
- Auditor’s responsibility for the audit opinion
- Relevant definitions
- Other topics included in this section
This section deals with the auditor’s responsibilities relating to the work of an individual or organization in a field of expertise other than accounting or auditing, when that work is used to assist the auditor in obtaining sufficient appropriate audit evidence.
OAG Guidance
Related Guidance
See OAG Audit 3100 for guidance on specialists in accounting or auditing.
See OAG Audit 3110 for guidance on management’s experts.
OAG Guidance
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Topic |
Title |
Content |
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Determining the need to use an auditor’s expert |
How to determine whether to involve an auditor’s expert in the audit, and the distinction between auditor’s experts and specialists in accounting or auditing, including examples of both. |
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Determining the procedures to perform when using auditor’s experts |
The nature, timing, and extent of audit procedures on auditor’s experts and how these are affected by OAG’s quality management policies and procedures. Guidance on how to document the work of auditor’s experts in the audit file. |
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Evaluating the competence, capabilities, and objectivity of the auditor’s expert and obtaining an understanding of the field of expertise |
The procedures required to evaluate the competence, capabilities, and objectivity of the auditor’s experts and the need to obtain an understanding of the auditor’s expert’s field of expertise. |
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Agreeing terms and arrangements with the auditor’s expert |
How to determine the form and content of the agreement with the auditor’s expert, and gives examples of specific considerations to be included in such an agreement. |
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Evaluating the adequacy of the auditor’s expert work |
The procedures to evaluate the adequacy of the auditor’s expert’s work and further actions to take if the expert’s work is inadequate for audit purposes. |
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Reference to the auditor’s expert in the auditor’s report |
The implications in the auditor’s report when using auditor’s experts. |
CAS Objective
The objectives of the auditor are (CAS 620.5):
(a) To determine whether to use the work of an auditor’s expert; and
(b) If using the work of an auditor’s expert, to determine whether that work is adequate for the auditor’s purposes.
CAS Guidance
The auditor has sole responsibility for the audit opinion expressed, and that responsibility is not reduced by the auditor’s use of the work of an auditor’s expert. Nonetheless, if the auditor using the work of an auditor’s expert, having followed this CAS, concludes that the work of that expert is adequate for the auditor’s purposes, the auditor may accept that expert’s findings or conclusions in the expert’s field as appropriate audit evidence. (CAS 620.3)
CAS Guidance
For the purposes of the CASs, the following terms have the meanings attributed below (CAS 620.6):
(a) Auditor’s expert—An individual or organization possessing expertise in a field other than accounting or auditing, whose work in that field is used by the auditor to assist the auditor in obtaining sufficient appropriate audit evidence. An auditor’s expert may be either an auditor’s internal expert (who is a partner or staff, including temporary staff, of the auditor’s firm or a network firm), or an auditor’s external expert.
(b) Expertise—Skills, knowledge and experience in a particular field.
(c) Management’s expert—An individual or organization 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 statements.
Engagement team—All partners and staff performing the audit engagement, and any other individuals who perform audit procedures on the engagement, excluding an auditor’s external expert and internal auditors who provide direct assistance on the engagement. (CAS 220.C12(d))
OAG Guidance
The following terms have the meanings attributed below:
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Auditor’s internal expert—OAG staff (including temporary staff) possessing expertise in a field other than accounting or auditing, whose work in that field is used by the auditor to assist in obtaining sufficient appropriate audit evidence.
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Auditor’s external expert—An individual or organization external to the OAG with expertise in a field other than accounting or auditing, whose work in that field is used by the auditor to assist in obtaining sufficient appropriate audit evidence.
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Specialists in accounting or auditing—OAG staff possessing expertise in accounting or auditing.
Auditor’s internal experts and specialists in accounting or auditing performing audit procedures on the engagement are considered part of the engagement team as defined in OAG Audit 3060. Therefore, auditor’s internal experts are subject to both CAS 220 requirements on engagement quality management and CAS 620. Auditor’s external experts are not part of the engagement team, and accordingly only CAS 620, explained in this topic, applies. Specialists in accounting or auditing performing audit procedures on the engagement are subject only to CAS 220 requirements.