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

Kestrel & Co is auditing Norvik Ltd, a mining company. The auditor wants to engage a geologist to estimate ore reserves, which affect depletion charges. Before relying on the geologist's work, which action is required by ISA 620 regarding the expert's suitability?

The auditor must evaluate the expert's competence, capabilities and objectivity. ISA 620 requires this before relying on the expert's work, using sources such as qualifications, experience, professional membership and discussions, because the evidence is only reliable if the expert is suitably skilled and unbiased.

  1. AEvaluate the competence, capabilities and objectivity of the expertCorrect
  2. BObtain Norvik's board approval of the geologist's appointment
  3. CConfirm that the geologist holds an accountancy qualification
  4. DEnsure the geologist has previously worked for the audit firm

Explanation

ISA 620 requires the auditor to evaluate the competence, capabilities and objectivity of the auditor's expert. Information sources include personal experience, discussions, qualifications, membership of professional bodies and published papers. Board approval and an accountancy qualification are not required; the expert needs expertise in a field other than accounting or auditing.

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