Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p120
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 380336–383407

useful for planning the assurance engagement (e.g., to inform each other about common sustainability matters that may be susceptible to risks of misstatement, or to discuss other matters that may be identified during the course of the respective engagements). If such matters are identified, communication between the practitioner and the auditor of the financial report may take place at appropriate times throughout the assurance engagement. In some cases, authorisation from management may be needed to share the entity's information with the auditor of the financial report.

           * The expected timing and the nature of the communications required with management or those charged with governance.

           * The reporting boundary.

           * The practitioner's understanding of the entity and its environment, including the risks that the disclosures may be materially misstated due to error or fraud.

           * The intended users and their information needs.

           * The nature, timing and extent of resources necessary to perform the engagement, such as expertise required, including the nature and extent of the involvement of experts.

           * If the entity has an internal audit function, the impact on the engagement.

 1.       Information obtained in the acceptance and continuance process may assist the engagement leader in planning and performing the engagement. Such information may include:

           * Information about the size, complexity and nature of the entity, including the industry in which it operates and the applicable criteria.

           * The entity's timetable for reporting.

           * If the assurance engagement relates to a group, the nature and extent of the control relationships between the entity and other entities within the group.

           * Relevant knowledge gained on other engagements performed by the engagement team for the entity.

           * Whether there have been changes in the entity or in the industry in which the entity operates since the previous assurance engagement that may affect the nature of resources required, as well as the manner in which the work of the engagement team will be directed, supervised and reviewed.

 1.       The practitioner may decide to discuss elements of planning with the entity when obtaining a preliminary knowledge of the engagement circumstances, determining the scope of the engagement or to facilitate the conduct and management of the engagement (e.g., to co-ordinate some of the planned procedures with the work of the entity's personnel). Although these discussions often occur, the approach to the engagement remains the practitioner's responsibility. When discussing the approach to the engagement, care is needed in order not to compromise the effectiveness of the engagement. For example, discussing the nature and timing of detailed procedures with the entity may compromise the effectiveness of the engagement by making the procedures too predictable.

 2.       Planning is not a discrete phase, but rather a continual and