ISA 620, using the work of expert, explain how an auditor may use an expert to obtain audit evidence. In performing auditor may encounter situations which require expertise other than auditing and accounting, in these situation auditor may hire or employ the expert who may help him. However, the opinion provided by audit belong solely to the auditor and therefore auditor can not refer expert in his report. Before relying on the work of expert auditor must assess the competence and capability of the expert so that the expert may be able to provide appropriate and sufficient audit evidence for audit purpose.
The following are factors that external auditor should consider when assessing the competence and objectivity of expert.
- The expert professional qualification. The expert should Ideally be a member of a relevant professional body or have necessary licence to perform the work.
- The experience and reputation of the expert in the area in which the auditor is seeking audit evidence.
- The independence of the expert from the client company. The expert should not normally be employed by client.