Sometimes due to circumstances like geographical constraints or want of expertise on any specific subject matter, an Auditor may be required to rely on the Third Party reports. What precautions should be taken by the Aud

As per CSAS-3-Auditing Standard on Forming of opinion Third Party Report or Opinion is used as one of the external sources of obtaining the Audit Evidences that would help in building the strong and quality Audit Opinion. The Auditor shall adhere to the following while forming an opinion based on Third party reports or opinions: The Auditor shall indicate the fact of use of Third-party report or opinion and shall also record the circumstances necessitating the use of Third-party report or opinion; The Auditor shall indicate the fact if Third party report or opinion is provided by the Auditee; The Auditor shall consider the important findings/observation of Third party; The Auditor shall, if necessary and feasible, carry out a supplemental test to check veracity of the Third-party report or opinion. While using the work of Third Party, the Auditor should: Consider the independence and objectivity of the Third Party; Take account of the Third Party's professional competence for the specific audit; Consider the scope of the Third Party's work; Determine the cost-effectiveness of using such work; Perform procedures to obtain sufficient appropriate Audit Evidence that the work of the Third Party is adequate in the context of the specific audit (which may require access to the Third Party's working papers); and Consider the significant findings of the other Auditor when analyzing and interpreting the results of that work. Where these findings are significant to the opinion, Auditor should discuss these findings with the Third Party and consider whether it is necessary to carry out additional audit testing him. When using the work of Third Party, Auditor should carefully consider that, the Third Party may only recognize a duty of care to the addressee of the audit report