CAF-8 · Chapter 8 · Question 6 of 10
A client recently revalued its head office building. According to ISA 540, what is the auditor's primary responsibility regarding this accounting estimate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Evaluate the reasonableness of the assumptions and methods used by management's expert.
Explanation
When management uses an expert for a valuation, the auditor must evaluate the expert's competence and the reasonableness of their assumptions and data.
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