CAF-8 · Chapter 12 · Question 4 of 10
Before relying on the work of a specialized property valuer (Auditor's Expert), the auditor must evaluate:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The expert's competence, capabilities, and objectivity.
Explanation
As per ISA 620, the auditor must assess if the expert has the skill (competence), resources (capability), and lack of bias (objectivity) to perform the work reliably.
More Reliance on Others MCQs
- Q6If an auditor uses a 'Service Organization' (e.g., an external company that processes the client's payroll), which ISA applies?
- Q7A 'Type 2 Report' from a service organization's auditor provides evidence regarding:
- Q8Which of the following is an indicator of LOW 'Objectivity' for a client's internal audit department?
- Q9When the external auditor decides to use the work of an expert, which of the following must be agreed upon in writing between the auditor…
- Q10In Pakistan, if the external auditor mentions the name of an auditor's expert in an 'Unmodified' audit report, what is the prerequisite?