If your audit involves a significant valuation, actuarial calculation, pension liability or another specialist area, your auditor may use an expert to help obtain sufficient audit evidence.
The Financial Reporting Council opened a consultation on 2 June 2026 covering proposed narrow-scope amendments to ISA (UK) 620, Using the Work of an Auditor’s Expert, alongside related changes to ISAE (UK) 3000. The consultation closes on 10 July 2026.
For directors, finance leaders and trustees, the key point is not that every specialist report used in financial reporting will suddenly fall under a new regime. The proposed changes are narrower. They focus on the auditor’s responsibilities when using the work of an auditor’s expert.
The FRC consultation on ISA (UK) 620 and ISAE (UK) 3000 is intended to align UK standards with recent international amendments and updated ethical requirements relating to external experts.
What the consultation actually covers
An auditor’s expert is a person or organisation with expertise in a field outside accounting or auditing whose work is used by the auditor as part of the audit evidence.
Examples may include:
- A valuation specialist assessing complex financial instruments
- An actuary reviewing pension or insurance assumptions
- A property specialist supporting the audit of a material property valuation
- A tax specialist assisting with a complex or judgemental tax position
The proposals focus on how auditors evaluate an external expert’s competence, capabilities and objectivity, and on clarifying the auditor’s responsibilities when using that expert’s work.
This is different from suggesting that ISA (UK) 620 governs every report commissioned by management. A valuation or actuarial report prepared for management may still form part of the evidence available during an audit, but the current consultation is specifically concerned with the auditor’s use of an auditor’s expert.
Management remains responsible for the financial statements, including the estimates and judgements reflected in them.
When this may matter to your organisation
The consultation is most relevant where an audit includes material balances that require specialist judgement.
That may apply where your organisation has:
- Significant property or investment valuations
- Defined benefit pension obligations
- Complex financial instruments
- Material impairment calculations
- Insurance liabilities
- Significant provisions requiring specialist assumptions
- Unusual or technically complex tax exposures
If the proposed amendments are finalised, auditors may place greater emphasis on how they assess an external expert and how that assessment is documented.
That does not necessarily mean the audit should become more burdensome for the organisation being audited. However, it may increase the importance of identifying judgemental areas early and making sure the underlying information is available when needed.
What finance teams should prepare
The most useful response is not to produce more paperwork for its own sake. It is to make sure significant estimates are supported by reliable information and can be explained clearly.
Before the audit begins, finance teams should consider:
- Which balances are likely to require specialist audit input
- Whether the underlying accounting records are complete and reconciled
- Whether management’s assumptions are documented
- Whether significant changes from the prior year can be explained
- Whether valuations and calculations will be available in time for audit planning
- Who within the organisation understands and owns each significant estimate
For example, an auditor’s valuation expert may need access to assumptions about discount rates, expected cash flows, market evidence or useful economic lives. If those assumptions are unclear or the supporting data is late, the specialist review may delay the wider audit.
Early preparation gives the audit team time to understand the issue, involve the right people and raise questions before the reporting deadline becomes tight.
Clear communication matters more than extra process
The involvement of an auditor’s expert should not feel disconnected from the rest of the audit.
Management should understand:
- Why specialist audit input is needed
- What information the auditor is likely to request
- When that information will be needed
- Which assumptions are likely to receive the most scrutiny
- How findings or challenges will be communicated
A well-managed audit should bring these points into the planning process rather than introducing them unexpectedly near sign-off.
That is particularly important where internal finance resources are limited. A late request involving a property valuation, pension calculation or impairment model can create considerable pressure if the organisation has not prepared for it.
Why experienced audit leadership still matters
The use of an auditor’s expert does not transfer the audit partner’s responsibility to the specialist.
The auditor must still evaluate whether the expert’s work is appropriate for the auditor’s purposes and whether it supports the conclusions reached.
This is where senior audit involvement matters. The technical output of an actuary or valuation specialist must be considered in the context of the organisation, its financial statements and the wider audit evidence.
Experienced audit leadership can help ensure that:
- Specialist issues are identified early
- The scope of the expert’s work is appropriate
- Technical findings are understood in context
- Questions are explained clearly to management
- Issues are resolved before they disrupt completion
The expert contributes specialist knowledge. The auditor remains responsible for the audit opinion.
Questions to raise during audit planning
Organisations with significant estimates may find it useful to ask:
- Is the audit team expecting to use an auditor’s expert?
- Which balances or disclosures are likely to be affected?
- What information will the expert require?
- When should valuations or calculations be available?
- Are there new assumptions or methodologies this year?
- Who will explain the specialist findings to management or trustees?
- Could any unresolved issue affect the reporting timetable?
These questions can help reduce uncertainty without attempting to manage the auditor’s independent work.
Final thought
The FRC consultation is a targeted proposal about the auditor’s use of experts. It should not be interpreted as a broad new framework governing every specialist report used by management.
For organisations with material valuations, pensions, provisions or other complex estimates, the practical lesson is straightforward: identify those areas early, make sure the underlying information is reliable and discuss the audit timetable before specialist work becomes urgent.
At Accendo, we support businesses, charities and organisations with audit and assurance services focused on clear communication, appropriate senior involvement and a well-managed reporting process. If your next audit involves significant estimates, valuations or specialist judgement, reviewing the evidence and timetable early can help reduce pressure later in the process.
Accendo supports businesses, charities and not-for-profit organisations with audit and assurance services focused on clear communication, appropriate senior involvement and a well-managed reporting process.
This article is for general information only and should not be treated as legal, accounting, tax or governance advice. Specific advice should be obtained based on your organisation’s circumstances.
