An expert or a specialist is a person possessing specialised skills, knowledge and experience in another field other than auditing and accounting. From his training and experience an auditor only has general knowledge on matters outside his profession and he is not expected to have the shills of a person trained or qualified to work in another profession. Consequently the auditor may need advice of other experts e.g. lawyers in arriving at the legal interpretation of legal cases against a client
- Situations Where The Auditor May Require Advice of an Expert
- Legal interpretation of contracts, laws and regulations
- Valuation of certain types of assets e.g. land and buildings, precious stones and minerals.
- In determining quantities and physical condition of assets e.g. underground minerals/quarries.
- Actuarial valuations;
- Measurement of work completed/to be completed in contracts.
To be able to reach on objective conclusion on the financial effect of some of the transactions and events that have taken place the auditor may require the opinion of an expert. Such an opinion or report will enhance the auditors‘ knowledge of the situation at hand and will therefore be able to conclude whether the financial effect of the issues have been properly dealt with in the financial statements