VW & Co., Chartered Accountants, are auditing GHI Ltd., a company engaged in infrastructure development. The company has recognized significant…

When information to be used as audit evidence has been prepared using the work of a management's expert, the nature, timing and extent of audit procedures may be affected by such matters: The nature and complexity of the matter to which the management's expert relates. The risks of material misstatement in the matter. The availability of alternative sources of audit evidence. The nature, scope and objectives of the management's expert's work. Whether the management's expert is employed by the entity, or is a party engaged by it to provide relevant services. The extent to which management can exercise control or influence over the work of the management's expert. Whether the management's expert is subject to technical performance standards or other professional or industry requirements. The nature and extent of any controls within the entity over the management's expert's work. The auditor's knowledge and experience of the management's expert's field of expertise. The auditor's previous experience of the work of that expert. In view of above, the auditor should evaluate the above factors before relying on the environmental expert's report and determine the appropriate nature, timing and extent of further audit procedures to ensure the reliability of audit evidence.