Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p38
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 113045–116284

* The availability of experts, if needed.

      * If an engagement quality review is needed, whether there is an individual available who meets the eligibility requirements in ASQM 2.

      * The need for technological resources, for example, IT applications that enable the engagement team to perform procedures on the entity's data.

      * The need for intellectual resources, for example, a methodology, industry or subject matter-specific guides, or access to information sources.

The Firm's Financial and Operational Priorities (Ref: Para. 30(b))

A73.         Financial priorities may focus on the profitability of the firm, and fees obtained for the performance of engagements have an effect on the firm's financial resources. Operational priorities may include strategic focus areas, such as growth of the firm's market share, industry specialisation or new service offerings. There may be circumstances when the firm is satisfied with the fee quoted for an engagement but it is not appropriate for the firm to accept or continue the engagement or client relationship (e.g., when the client lacks integrity and ethical values).

A74.         There may be other circumstances when the fee quoted for an engagement is not sufficient given the nature and circumstances of the engagement, and it may diminish the firm's ability to perform the engagement in accordance with AUASB standards and applicable legal and regulatory requirements. The APESB Code addresses fees and other types of remuneration, including circumstances that may create a threat to compliance with the fundamental principle of professional competence and due care if the fee quoted for an engagement is too low.

Engagement Performance

Responsibilities of the Engagement Team and Direction, Supervision and Review (Ref: Para. 31(a) and 31(b))

A75.         AUASB standards or applicable legal and regulatory requirements may include specific provisions regarding the overall responsibility of the engagement partner. For example, ASA 220 deals with the overall responsibility of the engagement partner for managing and achieving quality on the engagement and for being sufficiently and appropriately involved throughout the engagement, including having responsibility for appropriate direction and supervision of the engagement team and review of their work.
A76.         Examples of direction, supervision and review

           * Direction and supervision of the engagement team may include:

                   + Tracking the progress of the engagement;

                   + Considering the following with respect to members of the engagement team:

                   Whether they understand their instructions; and

                   Whether the work is being carried out in accordance with the planned approach to the engagement;

               * Addressing matters arising during the engagement, considering their significance and modifying the planned approach appropriately; and

               * Identifying matters for consultation or consideration by more experienced engagement team members during the engagement.

           * A review of work performed may include considering whether:

                   + The work has been performed