Using the Work of explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
SA 620 applies when an auditor needs help from a specialist outside accounting and auditing, such as a valuer, an actuary or a lawyer, to obtain audit evidence. It explains how to choose and brief the expert, how to judge the work, and why the auditor's report normally does not mention the expert.
SA 620, as effective for audits of financial statements for periods beginning on or after 1 April 2010, applies whenever the auditor uses such a specialist. ICAI may revise standards, so check icai.org for the current text. Valuation data packs are easier to assemble with financial and legal due diligence support.
The auditor has sole responsibility for the audit opinion, which is not reduced by using an expert (paragraph 3). If expertise outside accounting or auditing is needed, the auditor decides whether to use an expert, evaluates the expert's competence, capabilities and objectivity, understands the field, agrees the scope and roles, and evaluates whether the work is adequate. If it is not, further work is required. An unmodified report does not refer to the expert unless law requires it.
Scope and key terms (paragraphs 1-6)
The standard covers using the work of a person or organisation with expertise in a field other than accounting or auditing, where that work helps the auditor get sufficient appropriate evidence (paragraph 1). It does not cover specialists within the engagement team, who are dealt with under SA 220, or an expert used by the entity to prepare the statements (a management's expert), which falls under SA 500 (paragraph 2; see SA 500 and SA 540 part 1).
If the auditor, after following the standard, concludes the expert's work is adequate, the auditor may accept the expert's findings in the expert's field as appropriate audit evidence (paragraph 3).
| Term (paragraph 6) | Plain meaning |
|---|---|
| Auditor's expert | A person or organisation with expertise outside accounting or auditing whose work the auditor uses; either an internal expert (partner or staff of the firm or a network firm) or an external expert |
| Expertise | Skills, knowledge and experience in a particular field |
| Management's expert | A person or organisation with such expertise whose work the entity uses to prepare the statements |
Examples of fields in A1 include valuing complex financial instruments, land and buildings, plant, intangibles, assets and liabilities acquired in business combinations, actuarial calculations for insurance or employee benefits, oil and gas reserves, environmental liabilities, interpretation of contracts and laws, and complex tax compliance issues. An expert in deferred tax accounting methods is not an expert for this purpose because that is accounting expertise; an expert in tax law is (A2). Both the individual's attributes and the organisation's systems of quality control may matter (A3).
Do we need an expert? (paragraphs 7-8)
If expertise outside accounting or auditing is needed to obtain sufficient appropriate evidence, the auditor determines whether to use an auditor's expert (paragraph 7). An expert may help with understanding the entity, assessing risks, responding to them, or evaluating the evidence obtained (A4). Risk tends to rise when management itself lacks the expertise (A5).
The nature, timing and extent of the auditor's procedures depend on the matter the expert's work relates to, the risks of misstatement, the significance of the work, the auditor's experience of the expert's earlier work and whether the expert is subject to the firm's quality control policies (paragraph 8).
Competence, capabilities and objectivity (paragraph 9)
The auditor evaluates whether the expert has the necessary competence, capabilities and objectivity. For an external expert, the evaluation includes asking about interests and relationships that may threaten objectivity.
| Quality | What it means (A14) |
|---|---|
| Competence | The nature and level of the expert's expertise |
| Capabilities | The ability to use that competence in the engagement, including location, time and resources |
| Objectivity | Freedom from bias, conflict of interest or influence of others on professional or business judgement |
Sources include personal experience with the expert's earlier work, discussions with the expert or others familiar with the work, qualifications, membership of a professional body, licences, published papers and the firm's quality control policies (A15). The auditor looks at whether the expert's work is subject to technical standards, and whether the expert's specialty fits the task, for example an actuary experienced in insurance but not pensions (A16-A17). Threats to objectivity can be self-interest, advocacy, familiarity, self-review and intimidation; safeguards may reduce them, but not always, for instance where the proposed expert played a significant role in preparing the information being audited, which makes the person a management's expert (A18-A19). For an external expert the auditor may ask the entity about known interests and relationships, discuss safeguards with the expert (financial interests, business and personal relationships, other services provided), and in some cases obtain a written representation about interests (A20).
Understanding the field and agreeing the work (paragraphs 10-11)
The auditor gets enough understanding of the expert's field to decide the nature, scope and objectives of the work and to evaluate its adequacy (paragraph 10). The auditor then agrees with the expert, in writing when appropriate, on:
- the nature, scope and objectives of the work;
- the respective roles and responsibilities of the auditor and the expert;
- the nature, timing and extent of communication, including the form of any report; and
- the need to observe confidentiality requirements (paragraph 11).
The standard's appendix lists matters that can go into an agreement with an external expert, in headings such as the scope and objectives of the work, the roles and responsibilities, communication and reporting, and confidentiality. It also notes that the list can help for an internal expert.
Evaluating the work (paragraphs 12-13)
| What is evaluated | Paragraph |
|---|---|
| Relevance and reasonableness of the expert's findings or conclusions and consistency with other evidence | 12(a) |
| Where significant assumptions and methods are used, their relevance and reasonableness in the circumstances | 12(b) |
| Where significant source data is used, its relevance, completeness and accuracy | 12(c) |
Factors for assumptions and methods include whether they are generally accepted in the expert's field, consistent with the financial reporting framework, dependent on specialised models, and consistent with management's, and if not, why and with what effect (A37). The auditor may test source data by verifying its origin and checking completeness and consistency, or, for highly technical data, rely on enquiry of the expert who tested it, or supervise or review the expert's tests (A38-A39).
If the work is not adequate, the auditor either agrees with the expert on further work or performs further procedures that are appropriate (paragraph 13). If that does not resolve the matter, which may involve engaging another expert, a modified opinion may be necessary because evidence is insufficient (A40; see SA 705).
Referring to the expert in the report (paragraphs 14-15)
The auditor shall not refer to the work of an auditor's expert in a report with an unmodified opinion unless law or regulation requires it, and if so, states that the reference does not reduce the auditor's responsibility (paragraph 14). In a report with a modified opinion, the auditor may refer to the expert where relevant to understanding the modification, again stating that this does not reduce responsibility (paragraph 15). The expert's permission may be needed for such a reference (A42).
Illustrative example
Lotus Realty Pvt Ltd is an invented company; all figures are illustrative. It holds investment property carried at Rs 48 crore and an employee gratuity liability. The auditor judges the property valuation a significant risk and engages an external valuer. It checks the valuer's registration and experience in the city's commercial market, asks about any relationship with Lotus Realty and about other services provided to it, and agrees in writing the valuation date, methods, communication and confidentiality. It tests the rent roll used as source data and compares the valuer's yield assumption with those in management's valuation, noting why they differ. It also uses an actuary within its firm for the gratuity liability, subject to the same competence and objectivity checks. The audit report contains no reference to either expert, as the opinion is unmodified.
Need help with valuation support?
Valuations and actuarial reports are checked closely; clear source data and consistent assumptions across management's and the auditor's experts save time. TaxClue's financial and legal due diligence team can help you prepare the data packs and review the records that valuers will rely on.
Key takeaways
- Using an expert does not reduce the auditor's sole responsibility for the opinion.
- Competence, capabilities and objectivity are evaluated before reliance.
- The scope, roles, communication and confidentiality are agreed, in writing when appropriate.
- Assumptions, methods and source data of the expert are evaluated.
- An unmodified report does not refer to the expert unless law requires it.
Read next
- SA 540 part 1: accounting estimates
- SA 610: using the work of internal auditors
- SA 600: using the work of another auditor
- SA 500: audit evidence
Disclaimer: Based on the Standards on Auditing and quality standards issued by the Institute of Chartered Accountants of India, in the versions named in the article, and ICAI's announcement of 31 March 2026 on SQM 1 and SQM 2, as consulted on 3 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org. This article is general information, not legal advice; check the official text before acting.