Which of the following statements is correct about the auditor's use of the work of a specialist?

Question

Quizplus · Accepted Answer

Choice "D" is correct. Although the appropriateness and reasonableness of methods or assumptions used and their application are the responsibility of the specialist, the auditor should obtain an understanding of the methods or assumptions used in order to determine whether the findings are suitable for corroborating the representations in the financial statements. Choice "A" is incorrect. An understanding should exist among the auditor, the client, and the specialist as to the nature of the work to be performed. Choice "B" is incorrect. The auditor may consider performing substantive procedures to verify the specialist's findings if the specialist is related to the client, but is not required to do so. Choice "C" is incorrect. An understanding should exist among the auditor, the client, and the specialist as to the nature of the work to be performed.

Which of the Following Statements Is Correct About the Auditor's