[AUD] Using the work of others

0. Responsibility for opinion cannot be shared with others

1. Decide to use the work of others in the planning stage

2. Assess competence and objectivity

	Internal auditor	Specialist(actuary)
Competence, Qualification	- Quality of working paper documentation - external quality review of internal audit activities	cerification, licences, reputation, experience
Objectivity	- report to BOD, audit committee, general counsel - Professional internal auditing standards	immair된경우 제한적으로 사용 * no relationship, greater assurance

 

3. working with internal auditors

Although they can be involved with " test of controls" and " test of details", involvement should be limited to Less subjective area

1) understanding of internal control

    use the internal auditor's documents regarding design and implementation

2) Risk assessment (TOC)

3) Substantive procedures

    consider materiality, risk, and subjectivity of evidence

    high risk of MM(professional judgment involved area): estimates, related p T, derivatives, fraud relate

    low risk of MM(internal auditor may work alone): existence of cash, prepaid assets, fixed assets additions

 

4. working with specialists

Auditor should

review assumptions to evaluate the relevance, reliability, and adequacy of the work

  * assumption> specialist's resp

required to understand the objectivity and nature & scope of the specialist's work

 

Work of specialist

unreasonable > additional procedure, another specialist

not support FS > the work reasonable > Q / A / UQ + E

                         > the work unreasonable > UQ

 

 

5. Component auditor

group auditor / component auditor

group auditor unable to review the component auditor's documentation > makes reference in the opinon 

 

6. Another audit firm

when taking responsibility for the other firm's audit work

> review audit workpapers + reperform a subset of audit testing to validate the firm's conclusions