Solar Tube Gen is a start-up company in the renewable energy sector. The founder, Fritz Herzberg, has developed cutting-edge technology to convert the energy in the sun’s rays to electricity via a novel system of mirrors designed to focus the sun’s rays onto tubes containing a patented type of gas, which then heats and expands to drive turbines. KenKen Partners has won the contract for the first statutory audit of Solar Tube Genon the basis of its expertise in the energy sector. However, the lead partner, Ken Kennedy, recognizes that the success of the audit is dependent on the correct assessment of the technology being used at Solar TubeGen. Ken specified in the successful tender documents that the audit will use an external expert to help with valuation of the company’s assets.

Fritz Herzberg is very protective of his company’s intellectual property and is resistant to Ken’s first suggested expert, Manfred Hamburg. Fritz believes that Manfred Hamburg is hostile toward him because they clashed when they both worked for a German company making photovoltaic cells in the1990s. Fritz has suggested another expert, Lily Beilherz, with whom he has had good working relations over the last 20 years.

What will an auditor ensure when using an expert? (Several choices may be correct)

a). The scope of work to be performed is determined by the expert

b). Proper qualifications and experience are held by the expert

c). Experts can remain objective when performing the work

d). Scope of work to be carried out is determined by the auditor in charge of the audit

e). The auditor needs to determine the validity and consistency of the expert’s conclusion

f). Expert has a previous working relationship with the client

Answer rating: 100% (QA)

ANSWER a The scope of work to be performed is determined by the expert The scope of work defines mor... View the full answer