ACCA Strategic Professional · Advanced Audit and Assurance (International) · Specific assignments
Halden Mining engages its financial statement auditor, Orwell LLP, to give limited assurance on its sustainability report. Orwell's sustainability team uses a specialist engineer from within the firm to assess mine-site water-usage data. The engagement partner wants to rely on the engineer's work. Which action best satisfies ISAE 3000 (Revised)?
The partner should evaluate the engineer's competence, capabilities and objectivity and whether the work is adequate for the engagement, while keeping full responsibility for the conclusion. Using an internal expert does not remove the duty to evaluate, nor does it allow responsibility to be shared or transferred.
- ARely on the work without evaluation because the engineer is employed by the firm
- BEvaluate the engineer's competence, capabilities and objectivity, and the adequacy of their work for the practitioner's purposes, while retaining responsibility for the conclusionCorrect
- CTransfer responsibility for the conclusion to the engineer and refer to this in the report
- DDisclose the engineer's name in the report and not perform any further evaluation
Explanation
The practitioner must evaluate a practitioner's expert's competence, capabilities and objectivity and the adequacy of the work, even for an internal expert. Responsibility for the conclusion is not reduced by using an expert. Option one skips evaluation, and option three wrongly transfers responsibility.
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