Part (a):

• Factors for Assessing Expert’s Objectivity:
  • The expert’s financial interest in the audit client, such as shareholding.
  • The expert’s personal relationship with senior management in the client company.
  • Whether the fee paid to the expert was reasonable and commercially fair.

Part (b):

• Procedures to Assess Sufficiency and Appropriateness of Expert’s Work:
  • Reviewing the terms of the expert’s engagement, including objectives and scope.
  • Examining the content and conclusions of the expert’s report, especially assumptions made.
  • Checking the valuation methods used to ensure compliance with relevant standards (e.g., IAS 40).
  • Ensuring the valuation date aligns with the client’s fiscal year-end for relevance.
  • Confirming evidence reliability through inspections, cost comparisons, and post-year-end events if applicable.

Explanation:

• Explanation for Objective Assessment: The factors outlined help ensure that the expert’s judgment is unbiased and free from influence by the client’s interests or management relationships, which is crucial for the credibility of their valuation.
• Explanation for Procedures: By following these procedures, the auditor verifies that the expert’s work is reliable and meets auditing standards, thus supporting the auditor’s conclusion on the accuracy of the financial statement valuation.