Question
SolarTube Gen is a start-up company in the renewable energy sector. The founder, Fritz Herzberg, has developed cuttingedge technology to convert the energy in the
SolarTube Gen is a start-up company in the renewable energy sector. The founder, Fritz Herzberg, has developed cuttingedge technology to convert the energy in the suns rays to electricity via a novel system of mirrors designed to focus the suns rays onto tubes containing a patented type of gas, which then heats and expands to drive turbines. KenKen Partners has won the contract for the first statutory audit of SolarTube Gen on the basis of its expertise in the energy sector. However, the lead partner, Ken Kennedy, recognizes that the success of the audit is dependent on the correct assessment of the technology being used at SolarTube Gen. Ken specified in the successful tender documents that the audit will use an external expert to help with valuation of the companys assets.
Fritz Herzberg is very protective of his companys intellectual property and is resistant to Kens first suggested expert, Manfred Hamburg. Fritz believes that Manfred Hamburg is hostile toward him because they clashed when they both worked for a German company making photovoltaic cells in the 1990s. Fritz has suggested another expert, Lily Beilherz, with whom he has had good working relations over the past 20 years.
What will an auditor ensure when using an expert?
A - The scope of work to be performed is determined by the expert
B - Proper qualifications and experience are held by the expert
C - Expert can remain objective when performing the work
D - Scope of work to be carried out is determined by the auditor in charge of the audit
E - Auditor needs to determine the validity and consistency of the experts conclusion
F - Expert has a previous working relationship with the client
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