Problem

When auditing Vandalay Jewelry, Costanza, CPA was not familiar with the quality and cut of...

When auditing Vandalay Jewelry, Costanza, CPA was not familiar with the quality and cut of the company’s precious jewel inventory. To address this shortcoming, Costanza hired Benes, an expert in jewel valuation, to assist in the inventory valuation. Should Costanza refer to Benes’s work in the audit report?

A. Yes, the auditors’ report should mention the fact that a specialist was used.

B. The auditors’ report should mention the use of the specialist only when the specialist’s findings affect the auditors’ conclusions.

C. The use of a specialist need not be mentioned if the auditors decide not to take responsibility for the specialist’s findings.

D. The auditors’ report should mention the specialist only if Vandalay agrees with the specialist’s findings.

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