| The IAASB revised ISA 620 in response to developments including: |
| (a) | A concern that the extant ISA 620 mainly focuses on the use of experts with respect to substantive procedures regarding the measurement of account balances, whereas experts may be used for other purposes during the audit, for example, to assist in identifying and assessing the risks of material misstatement; and |
| (b) | The possibility that the wider use of fair value accounting may require more frequent use of experts by the auditor. |
| During the project, the IAASB considered matters, including whether the auditor's report should refer to the expert, and how the nature, timing and extent of audit procedures varies depending on such matters as: the nature of, and risks of material misstatement in, the matter to which the expert's work relates; the significance of the expert's work in the context of the audit; the auditor's knowledge of and experience with previous work performed by the expert; and whether the expert is subject to the auditor's firm's quality control policies and procedures. |
| The scope of the revised standard is restricted to consideration of the auditor's use of the work of an expert, employed or engaged by the auditor, possessing expertise in a field other than accounting or auditing. Conforming amendments have been made to paragraph of ISA 500, "Audit Evidence," so that it addresses use of management's experts. Considerations where a member of the engagement team with expertise in a specialized area of accounting or auditing is used are addressed in paragraph A20 of ISA 220, "Quality Control for an Audit of Financial Statements." |
| Compared to the extant ISA there is more specification of audit procedures, in particular regarding the agreement of work to be performed (paragraph 11) and evaluating the reasonableness of the expert's findings (paragraphs 12 and 13). |
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