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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Using the work of others

Auditor Havelock LLP engages an environmental consultant to assess a provision for site restoration at Quarry Aggregates Ltd. Which of the following should the auditor agree in writing, where appropriate, with the expert under ISA 620?

The auditor should agree the nature, scope and objectives of the expert's work, the respective roles and responsibilities, communication arrangements and confidentiality requirements, in writing where appropriate. Fees alone are insufficient, and the expert must not be bound to confirm management's estimate or draft the opinion.

  1. AThe nature, scope and objectives of the expert's work, respective roles, communication and confidentiality requirementsCorrect
  2. BOnly the expert's fee, since other matters are implied
  3. CThe final wording of the audit opinion
  4. DA guarantee that the expert's conclusions will agree with management's estimate

Explanation

ISA 620 requires the auditor to agree with the expert the nature, scope and objectives of the work, the roles and responsibilities of each party, the nature, timing and extent of communication, and the need for confidentiality. Agreement is in writing where appropriate. The opinion wording is the auditor's responsibility, and the expert must be free to reach independent conclusions.

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