A)
While performing an audit, expertise in the field of accounting and auditing only is not sufficient. In the preparation of financial report involves the use of expertise in a field other than accounting and auditing, the auditor, who is skilled in auditing and accounting may not possess the necessary expertise to audit that financial report. Thus, Australian Auditing Standard has included some provision through its standard in which an auditor can use the work of an Auditor’s Expert. Australian Auditing Standard (ASA) 620 defines the provision of use of work of auditor’s expert. To determine whether to use the work of auditor’s expert ASA 620 defines as:-
Determining the need for an Auditor’s Expert:
• Obtaining an understanding of the entity and its environment,
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As the audit progresses, or as circumstances change, the auditor may need to revise earlier decisions about using the work of an auditor’s expert. So, If need arises to revise earlier decision of using the work of an expert, we can decide accordingly to whether or not to use the work of an expert.
As per ASA 300, Planning and Audit of Financial Report deals with the auditor’s overall responsibility to plan an audit of a financial report. Planning an audit involves establishing the audit strategy for the engagement and developing an audit plan. Adequate planning benefits the audit of a financial report in several ways.
To set up the total audit strategy, which decides the period, time and direction of the audit and it guides the development of the audit plan. During the audit of DIPL also, as per ASA 300, planning is needed.
a)
during the planning stage by analysing all the information contained in the case, five factors that influence determination of preliminary figure of overall materiality for the 2017 audit of DIPL are as