Wiley Practitioner's Guide to GAAS 2020

29AU-C 620 Using the Work of an Auditor’s Specialist

Scope

Definitions of Terms

Objectives of AU-C Section 620

Requirements

Qualifications of a Specialist

Agreement with the Specialist

Work of a Specialist

Relationship to Client

Evaluating Findings

Effect on Audit Report

Report Reference to Specialist

Examples of Use of a Specialist

Specialist Related to Client

Specialist Employed by CPA Firm

Tests of Data Used by the Specialist

Need to Refer to Audit Guides

Interpretations

The Use of Legal Interpretations as Audit Evidence to Support Management’s Assertion That a Transfer of Financial Assets Has Met the Isolation Criterion in Paragraphs 7–14 of Financial Accounting Standards Board Codification 860-10-40

AU-C 620 Illustrations

Illustration 1. Engagement Letter from Client to Specialist

Illustration 2. Statement of Specialist’s Independence

SCOPE

AU-C 620 provides guidance regarding using the work of an expert in a field other than accounting or auditing, for example, a valuation expert, an actuary, or an expert in complex or unusual tax compliance issues. (AU-C 620.01 and 620.A1)

DEFINITIONS OF TERMS

Source: AU-C 620.06. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Auditor’s specialist, Expertise, Management’s specialist.

OBJECTIVES OF AU-C SECTION 620

The objectives of the auditor are

1. to determine whether to use the work of an auditor’s specialist and
2. if using the work of an auditor’s specialist, to determine whether that work is ...