When the auditor does not have a sufficient basis with which to consider the relevance and reliability of information from an external information source, the auditor may have a limitation on scope if sufficient appropriate audit evidence cannot be …

Reliability of Information Produced by a Management’s Expert (Ref: Para. 8) …

The preparation of an entity’s financial report may require expertise in a field other than accounting or auditing, such as actuarial calculations, valuations, or engineering data.  The entity may employ or engage experts in these fields to obtain the …

When information to be used as audit evidence has been prepared using the work of a management’s expert, the requirement in paragraph 8 applies.  For example, an individual or organisation may possess expertise in the application of models to estimate the …

The nature, timing and extent of audit procedures in relation to the requirement in paragraph 8, may be affected by such matters as:  The nature and complexity of the matter to which the management’s expert relates.  The risks of material misstatement in …

The Competence, Capabilities and Objectivity of a Management’s Expert (Ref: Para. 8(a)) …

Competence relates to the nature and level of expertise of the management’s expert.  Capability relates to the ability of the management’s expert to exercise that competence in the circumstances.  Factors that influence capability may include, for …

Information regarding the competence, capabilities and objectivity of a management’s expert may come from a variety of sources, such as:  Personal experience with previous work of that expert.  Discussions with that expert.  Discussions with others who …

Matters relevant to evaluating the competence, capabilities and objectivity of a management’s expert include whether that expert’s work is subject to technical performance standards or other professional or industry requirements, for example, ethical …

Other matters that may be relevant include:  The relevance of the management’s expert’s competence to the matter for which that expert’s work will be used, including any areas of specialty within that expert’s field.  For example, a particular actuary may …