Write short notes on the following:
a) Date of auditor‟s report
b) Competence and objectivity of the expert engaged auditor
Date of Auditor’s Report: The auditor should date the audit report no earlier than the date on which the auditor has obtained sufficient appropriate audit evidence on which to base the opinion on the financial statements. Sufficient appropriate audit evidence should include evidence that the entity‟s complete set of financial statements has been prepared and that those with the recognized authority have asserted that they have taken responsibility for them.
When planning to use the work of an expert, the auditor should assess the professional competence of the expert which will involve considering the expert‟s:
a. Professional certification or licensing by, or membership in, an appropriate professional body;
b. Experience and reputation in the field in which the auditor is seeking audit evidence.
The auditor should assess the objectivity of the expert. The risk that an expert‟s objectivity will be impaired increases when the expert is:
a. Employed the entity; or
b. Related in some other manner to the entity, for example, being financially dependent upon or having an investment in the entity. If the auditor is concerned regarding the competence or objectivity of the expert, the auditor needs to discuss any reservations with management and consider whether sufficient appropriate audit evidence can be obtained concerning the work of an expert.
The auditor may need to undertake additional audit procedures or seek audit evidence from another expert.