Question Tag: Experts

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  • 5 Marks

AA – April 2022 – L2 – Q1d – Audit and Assurance Evidence

Identify five circumstances when the work of an auditor's expert is needed.

ISA 620: “Using the Work of the Auditor’s Expert” provides guidance to auditors on relying on the work carried out by experts. Even though an expert’s work might be sought for relating to a particular issue, the Auditor has sole responsibility for the audit opinion being expressed.

Required:
Identify FIVE (5) circumstances the work of an Auditor’s Expert may be needed. (5 marks)

The work of an Auditor’s Expert may be needed in the following circumstances:

  1. Valuation of fixed assets including freehold and leasehold property, plant and machinery, works of art, and antiques.
  2. The measurement of work done on long-term contracts.
  3. Geological determination of mineral resources.
  4. Legal interpretation of agreements, statutes, or regulations.
  5. Legal opinion on the outcome of disputes and litigation.
  6. Actuarial evaluation of insurance and pension funds.
  • 6 Marks

AT – Nov 2015 – L3 – Q2b – Business income – Corporate income tax

Determining the tax treatment of payments to part-time lecturers, facilitators, and experts engaged by a training and research center.

A globally recognized Training and Research Centre on peacekeeping and peace support operations in Ghana has engaged you as a tax consultant to provide tax opinion on how the following transactions should be treated:

i. The Centre engages part-time lecturers on its Master’s Programmes which are run on a modular basis and run for a one-year period. Payments for the fees of these lecturers are based on the number of hours done.
(2 marks)

ii. The Centre engages facilitators who are to teach and direct the flow of class for courses that run for a short period. Payments for their services are based on hourly/daily work done.
(2 marks)

iii. The Centre engages experts/consultants to assist in developing new courses or review existing courses being run by the centre or undertake any other assignment as and when required by the Centre. Payment to this category of persons is also dependent on the duration of the task and based on man-days.
(2 marks)

i. Part-time lecturers should be subject to a final withholding tax at the rate of 10% under section (84)(a) of the Internal Revenue Act 2000, Act 592.
(2 marks)

ii. The engagement of facilitators to teach and direct the flow is a clear case of part-time teaching and should be subject to a withholding tax at the rate of 10%.
(2 marks)

iii. This is a clear case of a contract for service, and under section 84(2)(b), it is a clear case of the supply of service and should be subject to a 5% withholding tax paid to resident persons. It is not a final tax.
(2 marks)

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