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PSA 620 - Using The Work of an Expert (Determining the Need to Use the…
PSA 620 - Using The Work of an Expert
Purpose
to establish standards and provide guidance on using the work of an
expert
as an audit evidence
expert
- a person or firm possessing special skill, knowledge and experience in a field other than accounting and auditing
An expert may be engaged by or employed by:
the entity
the auditor
Determining the Need to Use the Work of an Expert
Materiality of the financial statement item being considered
Risk of misstatement based on the nature and complexity of the matter
Quantity and quality of other audit evidence available
Competence and Objectivity of the Expert
Assess professional competence of the expert
Assess objectivity of the expert
Scope of the Expert's Work
Auditor should obtain sufficient appropriate audit evidence that the scope of the auditor's work is adequate
Assessing the Work of the Expert
Assess the appropriateness of the expert's work as audit evidence
If expert's work do not provide sufficient appropriate audit evidence, or if results not consistent with the other audit evidence, the editor should resolve the matter.
Reference to an Expert in the Auditor's Report
Auditor should not refer to the work of an expert when issuing an unmodified auditor's report