When auditing Vandalay Jewelry,Costanza,CPA was not familiar with the quality and cut of the company's precious jewel inventory.To address this shortcoming,Costanza hired Benes,an expert in jewel valuation,to assist in the inventory valuation.Should Costanza refer to Benes's work in the audit report?

Question

Quizplus · Accepted Answer

The use of a specialist should be mentioned in the audit report only if their findings affect the auditor's conclusions. In this case, since Benes was hired to assist in the valuation of precious jewels, their findings may have impacted the valuation of inventory, and therefore should be mentioned in the report. However, if the auditor decides not to take responsibility for the specialist's findings or if Vandalay does not agree with the specialist's findings, the use of the specialist need not be mentioned in the report.

When Auditing Vandalay Jewelry,Costanza,CPA Was Not Familiar with the Quality