ACCA Advanced Audit and Assurance (AAA) Practice Exam

Who qualifies as an auditor's expert?

1. An internal staff member with general knowledge

2. A person with expertise in areas outside of auditing

3. A management consultant hired temporarily

4. Any qualified accountant within the entity

The correct answer is: A person with expertise in areas outside of auditing

An auditor's expert is defined as an individual or organization possessing specialized knowledge or skills in a particular field, which are relevant to the audit engagement. This means that the expert should have substantial expertise that extends beyond what is typically required or expected of an auditor. Choosing an individual with expertise in areas outside of auditing aligns with the requirement of having in-depth and specific knowledge that can only be provided by specialists in that area. For example, if an auditor needs to evaluate the fair value of a complex financial instrument, an expert in finance or financial instruments would be critical in providing insights that the auditor may not be equipped to evaluate independently. Other options do not align with the definition of an auditor's expert. An internal staff member with general knowledge may lack the specialized skills necessary for the audit's specific requirements. A management consultant hired temporarily may have valuable input but does not necessarily possess the specialized knowledge required for an expert's role in the audit context. Similarly, while any qualified accountant within the entity has relevant qualifications, they may not possess the specialized expertise required for particular audit procedures or evaluations that are necessary to support the auditor’s opinion. Thus, the definition and role of an auditor's expert clearly align with individuals who have advanced and specialized knowledge applicable to the audit area