AAA – L3 – SA – Q3.6 – Auditor’s Expert Valuation

True statements about auditor’s expert valuation.

Question

Which of the following are true about a valuation by an auditor’s expert?

1 It may be a part of audit evidence

2 The auditor’s expert should be experienced in the particular field

3 It reduces the responsibility of the auditor

A 1 and 2 only

B 1 and 3 only

C 2 and 3 only

D 1, 2 and 3

Answer

Explanation:
A valuation by an auditor’s expert may be part of audit evidence (1) and the expert should be experienced in the particular field (2). However, nothing reduces the auditor’s responsibility to make and report their independent opinion (3 is false). Thus, only statements 1 and 2 are true, making A the correct answer.

Tags: Audit Evidence, Auditor’s Expert, ICAG, Valuation
Level: Level 3

Topic: Audit Evidence

Uploader: Salamat Hamid