In acquisitions that are material to the purchasing entity,the auditor can just accept the specialist's appraisal and management's assessment of the fair value of the assets.

Question

Quizplus · Accepted Answer

The auditor must evaluate the specialist's appraisal, assess management's financial reporting process and controls, and perform procedures to obtain sufficient evidence to support the fair value of the assets. Simply accepting the specialist's appraisal and management's assessment without further evaluation would be considered inadequate auditing procedures.

In Acquisitions That Are Material to the Purchasing Entity,the Auditor