Assume you are the senior auditor in a large public accounting firm in charge of auditing the pension account of a large multi-national corporation based in the United States. You ask the company for support regarding its pension expense for its defined benefit pension plan. The company gives you a multitude of very detailed, complicated support. You are pretty good at math, but this is out of your league.
a. What kind of specialist would you consider bringing into to assist you in testing the reasonableness of the pension account transactions and balance?
b. If you decide to use a specialist, what must you, as the auditor, along with the client and the specialist understand according to AU 336?
c. What evidence can the specialist provide for the ICFR audit? For the financial statement audit?
d. List the audit steps you perform related to the specialist. List the audit steps you perform related to the specialist’s work.