Document ID: chunk:federal_register_of_legislation:F2023C01129:reg:11:p9
Version: federal_register_of_legislation:F2023C01129
Segment Type: reg
Provision Reference: reg 11 (pt 9/12)
Character Range: 31452–34520

law or regulation, arrangements to be made with the predecessor auditor, for example, to review the predecessor auditor's working papers.

           * Any major issues (including the application of accounting principles or of auditing and reporting standards) discussed with management in connection with the initial selection as auditor, the communication of these matters to those charged with governance and how these matters affect the overall audit strategy and audit plan.

           * The audit procedures necessary to obtain sufficient appropriate audit evidence regarding opening balances.[15]

           * Other responses designed and implemented by the firm for initial audit engagements (e.g., the firm's system of quality management may include responses that require another partner or individual with appropriate authority to review the overall audit strategy prior to commencing significant audit procedures or to review reports prior to their issuance).

Appendix 1

(Ref: Para. 7‑8 and A8‑A11)

Considerations in Establishing the Overall Audit Strategy

This appendix provides examples of matters the auditor may consider in managing quality at the engagement level.  Many of these matters will influence the auditor's overall audit strategy and detailed audit plan.  The examples provided cover a broad range of matters applicable to many engagements.  While some of the matters referred to below may be required by other Auditing Standards, not all matters are relevant to every audit engagement and the list is not necessarily complete.

Characteristics of the Engagement

      * The financial reporting framework on which the financial information to be audited has been prepared, including any need for reconciliations to another financial reporting framework.

      * Industry‑specific reporting requirements such as reports mandated by industry regulators.

      * The expected audit scope, including the components at which audit work is expected to be performed for purposes of a group audit, and the extent to which component auditors will be involved.

      * The nature of the control relationships between a parent and its entities or business units that determine how the group is to be consolidated.

      * The nature of the business segments to be audited, including the need for specialised knowledge.

      * The reporting currency to be used, including any need for currency translation for the financial information audited.

      * The requirement for an audit of a financial report for statutory, regulatory or other reasons, in addition to audit work performed for purposes of a group audit.

              *                  [Deleted by the AUASB.  Refer Aus 0.4][#]

              *                  Aus 0.4 Whether the entity has an internal audit function and if so, whether, in which areas and to what extent, the work of the function can be used for purposes of the audit.

      * The entity's use of service organisations and how the auditor may obtain evidence concerning the design or operation of controls