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

Harbour Audit LLP is auditing Delmar Plc, a property developer. The audit team decides that a specialist valuer is needed to evaluate the fair value of investment properties. Under ISA 620, who has sole responsibility for the audit opinion when the auditor uses an auditor's expert?

The engagement partner and audit firm retain sole responsibility for the audit opinion. Under ISA 620, using an auditor's expert does not reduce that responsibility, because the expert's work is only audit evidence that the auditor must evaluate and conclude upon.

  1. AThe auditor's expert, because the valuation requires specialist knowledge
  2. BThe engagement partner, because the auditor's responsibility for the opinion is not reduced by using an expertCorrect
  3. CShared equally between the auditor and the expert, as set out in the engagement letter
  4. DDelmar Plc's directors, because they are responsible for the valuations in the financial statements

Explanation

ISA 620 states that the auditor has sole responsibility for the audit opinion expressed, and that responsibility is not reduced by the auditor's use of an expert. The expert's work is evidence, not a transfer of responsibility. Sharing responsibility is wrong because the opinion remains the auditor's alone.

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