Auditors are required to understand the client's industry and business but may not be experts in identifying the quantity and value of certain inventory items. For example, consider observing a physical inventory and testing inventory valuation for a client who mines rare gems. In such cases, auditors may use a specialist to assist in testing the existence and valuation of inventory. Auditing standards provide guidance on whether and how an auditor can rely on a specialist. Search the PCAOB Web site (pcaobus.org) for PCAOB AU Section 336 guidance on "Using the Work of a Specialist" to answer the following questions.

c. What level of understanding does the auditor need to have regarding the nature of work performed by the specialist?

d. Does the specialist need to be independent of the client and the auditor?