Clark, PA, has been engaged to perform the audit of Kent Ltd.’s financial statements for the current year. Clark is about to commence auditing Kent’s employee pension expense. Her preliminary enquiries concerning Kent’s pension plan lead her to believe that some of the actuarial computations and assumptions are so complex that they are beyond the competence ordinarily required of an auditor. Clark is considering engaging Lane, an actuary, to assist with this portion of the audit.

a. What are Clark’s responsibilities with respect to the findings of Lane, if she wishes to rely on those findings?
b. Distinguish between the circumstances where it is and is not appropriate for Clark to refer to Lane in the auditor’s report.

  • CreatedJanuary 09, 2015
  • Files Included
Post your question