Document ID: chunk:federal_register_of_legislation:F2017C00509:body:0:p15
Version: federal_register_of_legislation:F2017C00509
Segment Type: other
Provision Reference: 
Character Range: 36601–39502

provide a written representation as sought by the audit team leader under subsection (2) or (3), the audit team leader:
 (a) must, in accordance with subparagraph 3.22(2)(b)(ix), report on the refusal under Part A of the assurance engagement report; and
 (b) must not give a reasonable assurance conclusion or a limited assurance conclusion in relation to the matter being audited.
 (6) Subsection (5) applies only if the audit team leader reasonably believes that the refusal will affect the conclusion he or she will be able to give in relation to the matter being audited.

3.15  Methods for gathering evidence
 (1) There are various methods for gathering evidence. The choice of which methods to use is for the audit team leader to make using his or her professional judgment.
 (2) The methods of gathering evidence include the following:
 (a) confirmation of existing information or processes by a third party;
 (b) recalculation of mathematical calculations used in the matter being audited;
 (c) re‑performance of systems and processes that were originally in place, or performed as part of the audited body's systems and processes, for ensuring the reliability and accuracy of the matter being audited;
 (d) employing analytical procedures;
 (e) inspection of records or documents relating to the audited body or a physical examination of the audited body's assets;
 (f) observation of a process or procedure being performed by others;
 (g) inquiry by seeking information from persons within or outside the audited body;
 (h) sampling and extrapolating the results of the sampling.

3.16  Consideration of materiality of misstatement
 (1) In considering the materiality of a misstatement in the matter being audited, the audit team leader must consider the following:
 (a) the significance of the misstatement in the matter being audited;
 (b) the pervasiveness of the misstatement in relation to the matter being audited;
 (c) the effect of the misstatement on the matter being audited as a whole.
 (2) The audit team leader must also identify if the misstatement is material individually or when it is aggregated with other identified misstatements.

3.17  Giving conclusions in a reasonable assurance engagement
 (1) If the audit team leader is carrying out a reasonable assurance engagement, the audit team leader must consider the evidence gathered in the course of carrying out the reasonable assurance engagement and give 1 of the following conclusions for the engagement:
 (a) a reasonable assurance conclusion;
 (b) a qualified reasonable assurance conclusion;
 (c) an adverse conclusion;
 (d) a conclusion that he or she is unable to form an opinion about the matter being audited.

Reasonable assurance conclusion
 (2) In giving a reasonable assurance conclusion, the audit team leader is giving a conclusion of the audit team leader's opinion, expressed in the positive, that there