5.9 Using the work of others such as internal auditors, other experts (tax, actuaries, valuers, lawyers etc.) and another auditor

During an audit, auditors may rely on the work of others to obtain audit evidence and support their conclusions. This can include utilizing the work of internal auditors, external experts, and other auditors. Here are some considerations when using the work of others in an audit:

1. Internal Auditors:
   • Internal auditors are professionals within the organization who are responsible for evaluating and monitoring the effectiveness of internal controls, risk management, and governance processes.
   • The external auditor may rely on the work of internal auditors if they determine that the internal audit function is competent, objective, and has performed relevant procedures.
   • The external auditor should evaluate the objectivity, independence, and qualifications of internal auditors and consider the nature, timing, and extent of their work.
   • The external auditor should assess the adequacy and effectiveness of the internal audit function in order to determine the extent of reliance on their work.
2. External Experts:
   • External experts refer to professionals who possess specialized knowledge or expertise in specific areas, such as tax advisors, actuaries, valuators, lawyers, or industry specialists.
   • The external auditor may engage external experts to perform procedures or provide opinions in areas requiring specialized knowledge or skills.
   • The external auditor should evaluate the competence, qualifications, and independence of external experts and assess the relevance and reliability of their work.
   • The external auditor should obtain sufficient appropriate audit evidence from external experts to support their own conclusions and opinions.
3. Other Auditors:
   • In the case of group audits or when auditing multinational companies, the external auditor may collaborate with or rely on the work of other auditors who have audited components or subsidiaries of the entity.
   • The external auditor should assess the professional competence, independence, and quality control systems of other auditors before relying on their work.
   • The external auditor should communicate and coordinate with other auditors to ensure consistency in audit procedures, understand the work performed, and share relevant findings or issues.
   • The external auditor should evaluate the work of other auditors and determine the extent to which they can rely on their work for purposes of the group audit.