What does management's specialist mean on the CPA exam?
Management's specialist. An expert management uses to help prepare the financial statements, such as an actuary or an appraiser. Their work is evidence the auditor evaluates, not audit work the auditor performed.
Defined against AU-C 501.27.
Which CPA exam sections use management's specialist?
Management's specialist appears in the AUD section of the CPA exam.
Related terms
- audit committee: A subcommittee of the board of directors that oversees financial reporting and the external audit.
- written representations: Statements the auditor requires from management to confirm matters or support other evidence.
- management override: Management using its authority to bypass controls that otherwise work.
- financial statements: The formal set an entity publishes: balance sheet, income statement, statement of cash flows, statement of changes in equity, and the notes.
- management's discussion and analysis: A narrative overview management provides ahead of the financial statements.
- internal audit: An in-house function that evaluates controls and processes and reports to those charged with governance.