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Article 19
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An expert basing its opinion on other expert reports (such as real estate appraisal reports or valuation reports) or a self-valuation report of the principal shall at least implement the following procedures:
- consider the requirements governing use of information generated by management’s experts as set forth in ARDF Auditing Standards nos. 620, “Using the Work of an Auditor's Expert,” and 500, “Audit Evidence,” when evaluating the professional capability, competence, and objectivity of other experts or the personnel of the principal conducting the valuation.
- evaluate, in light of each of the following with regard to the object under review, whether the procedures by which the opinions and conclusions in other expert reports or a self-valuation report of the principal are developed are comprehensive, correct, and reasonable, and confirm said procedures are legally compliant and consistent with the Regulations on Real Estate Appraisal, relevant Statement on Standards for Valuation, or international convention being drawn on or applied: relevant information, scope of the appraisal or valuation report, appraisal or valuation method employed, major assumptions, parameters, adjustment and inference procedures, opinions and conclusions, sources of data used, examinations, inquiries, calculations, or necessary analyses conducted. The expert shall, where necessary, request the principal to obtain the working papers from other experts.
- analyze the reasons for and reasonableness of any discrepancy in the opinions and conclusions of the reports if two or more reports are relied on.
- evaluate whether such other expert reports or the principal’s self-valuation report make sufficient basis for the expert to form an opinion, and, where necessary, collect other related data and implement other procedures, and, upon obtaining sufficient and proper information, analyze whether the difference between the results of evaluation and contents of engagement (such as the estimated transaction price or share exchange ratio, acquisition price etc. of the object under review) substantiates a reasonable conclusion sufficiently.
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