Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

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

• Scope
• Definitions of Terms
• Objectives of AU-C 620
• Requirements
• Qualifications of a Specialist—Competence, Capabilities, Objectivity
  • Understanding the Work of a Specialist
  • Agreement with the Specialist
  • Evaluating Findings
  • Effect on Audit Report
  • Report Reference to Specialist
  • Specialist Employed by CPA Firm
• 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

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-.02 and 620.A1)

Examples of Use of a Specialist

The following are examples of common uses of specialists:

• Determination of postemployment and postretirement benefit–related amounts by an actuary
• Determination of environmental cleanup obligations by an environmental consultant
• Determination of oil and gas reserves by a petroleum engineer
• Valuation of a financial institution's real estate investments or real estate collateral by an appraiser
• Determination of loss reserves of an insurance company by an actuary

The auditor is not required to use a specialist automatically whenever the client has engaged a specialist. ...