2. An auditor should seek outside experts to assist them when an expert who has work in a specific job field can be useful to the auditor to assist them in obtaining sufficient appropriate audit evidence. An expert is used to decrease the risk that a material misstatement will not be detected. An expert would be useful to an external auditor when the auditor hires an actuarial firm to help make the discount rate estimates of a client. The actuarial firm is independent of the internal and external auditor, competent, and has sufficient reliable information to develop the estimates. The discount rate estimate by the external actuarial firm will provide a unbiased discount rate which will help the external auditor decide if the discount rate applied by the client is sufficient.
3. I do not believe that Deloitte behaved properly by accepting GM's decision to apply a 6.75 percent discount rate to its pension liabilities. This selected discount rate is considerably higher than