- 1 Marks
Question
All the following are necessary when the auditor is considering whether to rely on the work of a specialist EXCEPT:
- A. The independence of the specialist
- B. The experience of the specialist
- C. The fees charged by the specialist
- D. The specialist’s relationship with the client
- E. Compatibility of the data in preparing the financial statement
Answer
C
Explanation: The answer is C. The fees charged by the specialist. While the independence, experience, relationship with the client, and data compatibility are essential for assessing the reliability of a specialist’s work, the fees charged are not a determining factor in deciding whether to rely on the specialist’s work in the audit.
- Tags: Audit evidence, Expert Reliance, Financial Reporting, Independence, Specialist
- Level: Level 3
- Topic: Use of Experts in Audits
- Series: NOV 2011
- Uploader: Dotse