ISA 620: Using the Work of an Auditors Expert

1. Lyamanyaki Company Ltd is a multinational company operating in Tanzania. Its core operations include management of pension funds and real estate development. In preparing the financial statements, they carry out an appraisal of the pension funds to asses its ability to pay benefits to contributors. Periodic revaluation of lands and buildings was also carried out.

Required:

i.In respect of valuation of pension funds, future payments to beneficiaries and revaluation of properties, name two auditors experts on whom possible reliance will be placed on during the audit of the company and the work each may perform.

ii.Explain four (4) factors to be considered when deciding to appoint an auditors expert.

iii.Explain four (4) procedures to follow to determine whether you can place reliance on work performed by an auditors expert.