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Chapter 16
EXPERTS
1. Introduction
Sometimes auditors will need to use the work of others.
For example:
๏
Experts in a field other than accounting or auditing, such as:
‣
Actuaries to evaluate the adequacy of pension scheme funds
‣
Estate agents to value property
‣
Lawyers to estimate a legal liability
‣
Gemologists to value diamonds
‣
Geologists to estimate mineral deposits
๏
Internal audit can be used to perform audit work on parts of a business (see Chapter 17).
๏
Component auditors might be responsible for auditing one of the group’s companies (see 
Chapter 21).
In none of these cases can the audit firm escape its responsibility for providing its own opinion about 
the financial statements. The auditor must still obtain sufficient appropriate audit evidence that any 
third party’s work does itself provide sufficient appropriate audit evidence: auditors cannot shift 
blame to an expert if a material misstatement appears in the published financial statements. Indeed, 
reliance on a third party should not normally be disclosed in the auditor's report as this suggests an 
attempt to ‘blame-shift’.
2. Classes of expert
๏
An auditor’s expert: possesses expertise used to assist the auditor in obtaining sufficient 
appropriate audit evidence. Can be either an internal expert (a partner or member of staff) such 
as an actuary employed by the auditing firm, or an external expert who is subcontracted to 
perform the work. ISA 620 
Using the Work of an Auditor's Expert
applies.
๏
Management’s expert: possess the expertise to assist management of the company to prepare 
the financial statements. Can also be internal or external. ISA 500 
Audit Evidence
applies.
The fact that a management’s expert has prepared figures does not stop the auditor using an 
auditor’s expert. For example, if management’s expert is an employee of the client there are obvious 
risks that the expert has been influenced by management. Even if management's expert is not 
employed by the client, their objectivity must be assessed as well as their competence and 
capabilities.