An auditor intends to use the work of an actuary who has a relationship with the client. Under these circumstances, the auditor:

Question

Quizplus · Accepted Answer

Choice "B" is correct. While a specialist who is unrelated to the client will provide the auditor with greater assurance of reliability, a specialist who is related to the client may be acceptable in certain circumstances. In such situations, the auditor would likely perform additional procedures to verify objectivity. Choice "A" is incorrect. If the auditor is expressing a standard unqualified opinion, no reference would be made to the specialist in the auditor's report. Choice "C" is incorrect. While a specialist who is unrelated to the client will provide the auditor with greater assurance of reliability, a specialist who is related to the client may be acceptable in certain circumstances. Choice "D" is incorrect. The fact that the actuary has a relationship with the client is not considered to be a significant deficiency in internal control

An Auditor Intends to Use the Work of an Actuary