Rohita & Co. Chartered Accountants, mainly into statutory audit and tax audit, has received an order in writing from the Central Government, in…

CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · May 2024
Rohita & Co. Chartered Accountants, mainly into statutory audit and tax audit, has received an order in writing from the Central Government, in respect of one of its clients, to carry out an investigation. Rohita & Co. is contemplating getting the assistance of an expert with respect to certain matters. Can Rohita & Co. take the assistance of experts in pursuing the investigation? Choose the correct reasoning from the below?
(A) Yes, Rohita & Co. should consider whether the assistance of other experts like engineers, lawyers, etc. is necessary in the interest of a comprehensive and full proof examination of documents and information.
(B) Yes, SA 620 – Using the work of experts, has a specific paragraph on using an expert's assistance for investigation.
(C) No, the objective of SA 620 is to use the work of expert for audit of historical financial statements and not for investigation purposes.
(D) No, since investigation is analytical in nature and requires a thorough mind, capable of observing, collecting and evaluating facts, the usage of an expert will hinder the independence of the investigator.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Yes, Rohita & Co. should consider whether the assistance of other experts like engineers, lawyers, etc. is necessary in the interest of a comprehensive and full proof examination of documents and information.

Topics: Group Audits

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