Using the work of others

In this lesson

1. 0:00 Using the work of others in audits
2. 0:25 Why auditors need specialist experts
3. 1:55 Service organisations and outsourced functions
4. 2:41 Assessing quality and auditor responsibility
5. 3:50 Management experts versus auditors experts
6. 5:22 Planning and deciding when experts needed
7. 6:01 Evaluating internal and external experts
8. 6:58 Five key considerations: scope to competence
9. 8:36 Engaging experts: written agreements
10. 9:43 Reviewing expert work and findings
11. 10:26 Practice question: relevant considerations

About this lesson

You'll explore the different types of experts and service organisations you'll encounter, including management's experts (used to prepare financial statements) and auditors' experts (used to gather audit evidence). The lesson covers when you need specialist input—from property revaluations and specialist inventory valuations to pension calculations and complex tax issues—and how to distinguish between internal experts within your firm and external specialists. The core methodology uses the acronym SODIT to evaluate any expert's work: Scope (is the work relevant and sufficient?), Organisational status (for internal audit, are they independent?), Due skill and care (is the quality assured?), Independence (are they free from bias?), and Technical competence (do they have the right expertise?). You'll also learn how to engage experts properly through written agreements that clarify objectives, roles, responsibilities, timing, and confidentiality requirements. Throughout, you'll see why auditors retain sole responsibility for their opinion regardless of expert reliance, and why thorough evaluation of others' work directly impacts the quality of your audit evidence and your ability to give an unmodified audit report.

Duration: 12m