ACCA Advanced Audit and Assurance (AAA) Practice Exam

Who verifies the competence of an auditor's expert?

1. The internal audit committee

2. The external auditing firm

3. The auditor conducting the audit

4. Entity management

The correct answer is: The auditor conducting the audit

The competence of an auditor's expert is verified by the auditor conducting the audit. This responsibility lies with the auditor because they need to ensure that any expert they engage has the necessary qualifications, experience, and expertise to provide reliable information or opinions relevant to the audit work. The auditor must perform due diligence in evaluating the expert’s credentials and prior work to determine whether their input will be appropriate for the audit. The auditor's assessment of the expert's competence is crucial because it directly impacts the quality and reliability of the audit results. If the expert's advice is not based on solid expertise, it could lead to flawed conclusions and affect the overall audit opinion. While other parties, such as the internal audit committee or entity management, may play a role in selecting experts, the final responsibility for assessing their competence lies with the auditor. The external auditing firm may oversee the auditor's work but does not conduct the direct assessment of the expert's competence for a specific audit engagement.