Experts

Management expert's work is used by the entity

• for assistance in preparation of Financial statements
• in obtaining sufficient & appropriate audit evidence
• to express an opinion on financial statement
• All of the above

Answer explanation

Definition

When information to be used as audit evidence has been prepared using the work of a management’s expert, the auditor shall, to the extent necessary, having regard to the significance of that expert’s work for the auditor’s purposes.

• Evaluate the competence, capabilities and objectivity of that expert
• Obtain an understanding of the work of that expert
• Evaluate the appropriateness of that expert’s work as audit evidence for the relevant assertion
• All of the above

Answer explanation

Definition

Usual tax compliance Ltd. has encounter an unusual tax compliance issue that could result in material liabilities recorded in the financial statement. Whether this situation constitute a requirement of management expert?

• Yes
• No

Answer explanation

Definition

Heena jewels has engaged their own expert to assist in valuing their inventory. Whether this constitute a requirement of management expert?

• Yes
• No

Answer explanation

Definition

Information prepared by the entity using the work of management expert don't constitute audit evidence.

• True
• False

Answer explanation

Definition

What procedure is required to be performed by engagement team to evaluate the adequacy of expert's work?

• Test source data used by expert for completeness and accuracy.
• Reperform expert work
• Doubt over management's expert work
• None of the above

Answer explanation

Definition

MNC ltd. Involves various experts for their financial statement preparation purpose. What of the following is not the example of expertise in accounting and auditing?

• A. method of accounting of deferred income tax
• B. method of accounting of Financial instruments
• Both A and B
• Interpretation taxation laws

Answer explanation

Definition

Auditors expert is covered under:

• SA 620
• SA 500
• SA 200
• SA 501

Answer explanation

Definition

A technical person with the organization with expertise in applying the methods of accounting for business combination. Whether this constitute management expert?

• Yes
• No

Answer explanation

Definition

Does safeguards eliminates all threats to management expert objectivity?

• Yes
• No

Answer explanation

Definition