When auditing Vandalay Jewelry, Costanza CPA was not familiar with the quality and cut of the company’s precious jewel inventory. To address this shortcoming, Costanza hired Benes, an expert in jewel valuation, to assist in the inventory valuation. Should Costanza refer to Benes’s work in the audit report?
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When auditing Vandalay Jewelry, Costanza CPA was not familiar with the quality and cut of the company’s precious jewel inventory. To address this shortcoming, Costanza hired Benes, an expert in jewel valuation, to assist in the inventory valuation. Should Costanza refer to Benes’s work in the audit report?
a. the auditors’ report should mention that use of a specialist only when the specialist’s findings affect the auditors’ conclusion
b. the use of a specialist need not be mentioned if the auditors decide to take responsibility for the specialist’s findings
c. yes, the auditors’ report should mention that fact that a specialist was used
d. the auditors’ report should mention the specialist only if Vandalay agrees with specialist’s findings
Answer: a. the auditors’ report should mention that use of a specialist only when the specialist’s findings affect the auditors’ conclusion
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