Using the Work of Others
Section 3 is 30-40% of the AUD exam — the heaviest section — and the AICPA consistently tests whether candidates understand that the external auditor's responsibility is NEVER reduced by using others' work. The #1 trap is treating a reference to a component auditor as a qualification of the opinion — under AU-C 600, it is simply a division of responsibility and the opinion remains unmodified. Under AU-C 620, candidates must distinguish between an auditor's specialist (whose work helps the auditor) and a management's specialist (whose work helps management prepare the statements), because the reporting rules differ: the auditor's specialist should NOT be referenced in the report. Many candidates also miss that AU-C 610 requires evaluation of internal auditors' competence, objectivity, AND systematic approach — all three factors.
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What AICPA Wants You to Know
- 1Evaluate the work of internal auditors for audit purposes
- 2Understand the group audit and component auditor framework
- 3Apply the requirements for using a management's specialist vs. an auditor's specialist
- 4Determine when reference to another auditor is appropriate in the audit report
- 5Assess the competence and objectivity of those whose work is used