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USING THE WORK OF OTHERS - Coggle Diagram
USING THE WORK OF OTHERS
When expert need to assist an auditor
Determining and implementing overall responses to assessed risks at the financial statement level
Evaluating the sufficiency and appropriateness of audit evidence obtained in forming an opinion on the financial statements
Identifying and assessing the risks of material misstatement
Designing and performing further audit procedures to respond to assessed risks at the assertion level
Obtaining an understanding of the entity and its environment
Why procedures need to be performed
To assess the objectivity of the expert
To ensure that the expert is professional competent to take up the engagement
What auditor need to consider
scope of work of the expert’s work
assumption and method used by the
expert
The objective of involving the work of an expert
assess the appropriate of
the expert’s work as audit evidence
appropriateness and reasonableness of assumption and method by the expert and figurs reported
What to do if expert does not provide sufficient audit evidence
Discuss again with management and expert
Applying additional procedures including engaging another expert
modify report if still not resolved
issued a qualified report
Unqualified opinion with emphasis of matter/OMP
When risk of material misstatement increase
when expertise in a field other than accounting is needed for management to prepare financial statements