Page 61 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

2. Revaluation Triggers: During the audit, unexpected events, changes in conditions, or evidence obtained
from audit procedures may necessitate a reassessment of the auditor's expert's competence, capabilities, and
objectivity.
Evaluation Of the Significance of Threats to Objectivity and Need For Safeguards
1. Experts Role:
• Evaluation depends on the auditor's expert role and the significance of their work in the audit context.
• There's a potential threat if the auditor's expert had a major role in the audited information, especially if
positioned similarly to a management’s expert.
2. Evaluating External Expert Relationships:
• Inquiry with Entity: Inquire the entity about any known interests or relationships affecting the expert's
objectivity.
• Discussion with Expert: Discuss with the expert regarding:
o Business/personal relationships.
o Financial interests.
o Other services they might offer.
• Safeguards: Address applicable safeguards and professional mandates with the expert. Ascertain if
safeguards mitigate threats adequately. (Keeping him away his own work, appointing one more expert, more
communication)
3. Documentation:
When relevant, secure a written affirmation from the external expert about any entity-related interests or
relationships they know of.

(CNO-SA620.100) Step 3:- Obtaining an Understanding of The Field of Expertise Of The Auditor’s Expert
(Why)
1. Understanding Field of Expert: The auditor must gain a comprehensive understanding of the auditor's
expert's field of expertise.
2A. To Provide Work Details (Agreement): The auditor should identify the specific nature, scope, and
objectives of the expert's work for the purposes of the audit.
2B. To Evaluate Work: The auditor is required to assess the sufficiency and appropriateness of the expert's
work for the auditor's purposes.
Auditor may obtain understanding of other field: (How)
Shortcut: E D
2
Experience: Gaining knowledge through auditing entities that require such expertise in the preparation of
financial statements.
Education: Enhancing capacity through professional development in the specific field, which may involve
formal courses or discussions with individuals possessing expertise in that field. This differs from consultations
with an auditor's expert on a specific matter.
Discussion: Engaging in conversations with auditors who have previously performed similar engagements.

(CNO-SA620.120) Step 4: - Agreement with The Auditor’s Expert
Shortcut: NC2R ka agreement

Written form: The auditor must concur, preferably in written form, with the auditor's expert on certain
matters.
1. Nature of Work: The specifics of the expert's work, including its nature, scope, and objectives, should be
agreed upon.
2. Communication: The nature, timing, and extent of communication between the auditor and the expert
should be agreed upon, including the form of any report to be provided by the expert.

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