Section 3: 30–40%A12

Using the Work of Others

Exam insight

Section 3 carries the most weight on the AUD exam (30-40%), and the AICPA keeps testing one idea: using someone else's work never reduces the external auditor's own responsibility. The recurring trap is treating a reference to a component auditor as a qualification of the opinion. Under AU-C 600 it is just a division of responsibility, and the opinion stays unmodified. Under AU-C 620, you must tell apart an auditor's specialist (whose work helps the auditor) from a management's specialist (whose work helps management prepare the statements), because the reporting rules differ: the auditor's specialist should not be named in the report. Many candidates also forget that AU-C 610 requires evaluating internal auditors on all three factors, competence, objectivity, and a systematic approach.

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

Patterns in this topic

The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.

Whose Work Is ItYou can divide responsibility or assume it, but using others never shrinks your own responsibility.Estimates, Going Concern, Related PartiesTest estimates for bias, evaluate management's going-concern plans, and disclose related parties.

Exam tip

Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.