Objectives The objectives of the auditor are: (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. (paragraph 5) |
| 224. | Given the complexity, subjectivity and specialist nature of the activities of banks and building societies the auditor may involve an expert51 in elements of the audit of these areas, including, for example: |
| the valuation of derivative and other financial instruments not traded in an active market; |
| VAR (or similarly complex) market risk disclosures; |
| commercial property valuations; and |
| information technology. |
| Auditor's experts may assist with the performance of tests of controls and substantive procedures and evaluating disclosures in the financial statements. |
| 51 ISA (UK and Ireland) 620 defines an auditor's expert as: 'An individual or organisation 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.' |
| Experts used by the entity to assist in preparing the financial statements are 'management's experts'. The auditor's considerations in relation to management's experts are addressed in ISA (UK and Ireland) 500. |
 |
Licence and copyright | © 2018, LexisNexis Group a division of Reed Elsevier (UK) Ltd. All rights reserved. |