For accounts that involve significant estimates, require a high degree of judgment, or are susceptible to management override of controls, a principal auditor may completely rely on the work of others in determining whether those accounts are materially misstated.

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For accounts that involve significant estimates, require a high degree of judgment, or are susceptible to management override of controls, the principal auditor cannot completely rely on the work of others and must perform additional procedures to obtain sufficient evidence to support their opinion. They may rely on the work of others but must also perform their own procedures to evaluate the assumptions and methods used in preparing the estimates and to assess the risk of fraud or error.

For Accounts That Involve Significant Estimates, Require a High Degree