108 paragraphs found
The auditor makes reference to the requirements, application and other explanatory material contained in ASA 500 and evaluates whether the management’s expert has the necessary competence, capabilities and objectivity for the auditor’s purposes. This is …
Competence, capability and objectivity of a management’s expert impacts the degree of reliability of that expert’s work as audit evidence, that is, the extent to which the management’s expert’s work could provide persuasive audit …
The nature and extent of procedures to evaluate the management’s expert’s competence, capability and objectivity depends on the significance of that expert’s work to the auditor’s conclusion regarding the relevant assertion and the risk of material …
Competence relates to the nature and level of expertise of the management’s expert. The auditor uses professional judgement when determining the competency of a management’s expert. When evaluating competence, the auditor may consider the guidance …
The auditor’s evaluation of the management expert’s competence may be influenced by the management’s expert’s work environment, for example that expert’s internal quality control policies and …
Capability relates to the ability of the management’s expert to exercise their competency in the circumstances. When evaluating capability, the auditor may consider the guidance included in ASA 500 [20] as well as: Geographic location; Availability of …
Objectivity relates to the possible effects that bias, conflict of interest, or the influence of others may have on the professional or business judgement of the management’s expert. When evaluating objectivity, the auditor may consider the guidance …
ASA 500 indicates that evidence from external sources is generally more reliable than that generated internally. The auditor may evaluate the relationship to the company of the management’s expert, specifically, whether circumstances exist that give the …
Circumstances which may threaten the objectivity of the management’s expert may include: advocacy threats, familiarity threats, self-review threats and self-interest threats [22] . Examples include economic dependency of the management’s expert on the …
The evaluation of the significance of threats to objectivity and of whether there is a need for safeguards may depend upon the role of the management’s expert and the significance of that expert’s work in the context of the audit. There may be safeguards …