Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p6
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 15707–18870

In accordance with ASA 200,[2] the engagement team is required to plan and perform an audit with professional scepticism and to exercise professional judgement. Professional judgement is exercised in making informed decisions about the courses of action that are appropriate to manage and achieve quality given the nature and circumstances of the audit engagement. Professional scepticism supports the quality of judgements made by the engagement team and, through these judgements, supports the overall effectiveness of the engagement team in achieving quality at the engagement level. The appropriate exercise of professional scepticism may be demonstrated through the actions and communications of the engagement team. Such actions and communications may include specific steps to mitigate impediments that may impair the appropriate exercise of professional scepticism, such as unconscious bias or resource constraints. (Ref: Para. A33–A36)

Scalability

8.                   The requirements of this ASA are intended to be applied in the context of the nature and circumstances of each audit. For example:

(a)                When an audit is carried out entirely by the engagement partner, which may be the case for an audit of a less complex entity, some requirements in this ASA are not relevant because they are conditional on the involvement of other members of the engagement team. (Ref: Para. A13–A14)

(b)                When an audit is not carried out entirely by the engagement partner or in an audit of an entity whose nature and circumstances are more complex, the engagement partner may assign the design or performance of some procedures, tasks or actions to other members of the engagement team.

The Engagement Partner's Responsibilities

9.                   The engagement partner remains ultimately responsible, and therefore accountable, for compliance with the requirements of this ASA. The term "the engagement partner shall take responsibility for…" is used for those requirements that the engagement partner is permitted to assign the design or performance of procedures, tasks or actions to appropriately skilled or suitably experienced members of the engagement team. For other requirements, this ASA expressly intends that the requirement or responsibility be fulfilled by the engagement partner and the engagement partner may obtain information from the firm or other members of the engagement team. (Ref: Para. A22–A25)

Effective Date

10.               [Deleted by the AUASB.  Refer Aus 0.3]

Objective

11.               The objective of the auditor is to manage quality at the engagement level to obtain reasonable assurance that quality has been achieved such that:

(a)                The auditor has fulfilled the auditor's responsibilities, and has conducted the audit, in accordance with Australian Auditing Standards and applicable legal and regulatory requirements; and

(b)                The auditor's report issued is appropriate in the circumstances.

Definitions

12.               For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

(a)                Engagement