Use of external experts narrow-scope amendments

Background

The proposed introduction of requirements to the code of ethics in relation to using the work of external experts, requires narrow-scope amendments to certain  standards. These amendments are to ensure that those standards and the code of ethics can continue to be effectively applied together when the practitioner uses the work of an external expert.

The exposure draft proposes targeted amendments to:

• ISA 620 Using the Work of an Auditor’s Expert
• ISRE 2400 Engagements to Review Historical Financial Statements
• ISAE 3000 (Revised) Assurance Engagements Other Than Audits or Reviews of Historical Financial Information
• ISRS 4400 Agreed-Upon Procedures Engagements

The proposed amendments include:

• A requirement to consider relevant ethical requirements when auditor uses an external expert (ISA 620)
• New application material, including that relevant ethical requirements may prohibit use of work of external expert if not competent, capable or objective (ISA 620 and other standards)

Exposure draft

The IAASB’s exposure draft is here.

We seek comments on the questions on page 15-16. Furthermore, any comments on benefits or costs/risks of adoption of this standard in New Zealand or any other comments relating to adoption in New Zealand are also welcome.

How to provide feedback

You can:

• send your comments directly to the XRB via assurance@xrb.govt.nz or
• complete our feedback form
• complete the form, with attachments, below.

The XRB seeks your feedback by 10 July 2025.

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