Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p15
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 41544–44708

audit strategy and the audit plan remain the auditor's responsibility. When discussing matters included in the overall audit strategy or audit plan, care is required in order not to compromise the effectiveness of the audit. For example, discussing the nature and timing of detailed audit procedures with management, or those charged with governance, may compromise the effectiveness of the audit by making the audit procedures too predictable.

69.               Existing paragraph A5 is amended to read as follows:

Performing the preliminary engagement activities specified in paragraph 6 at the beginning of the current audit engagement assists the auditor in identifying and evaluating events or circumstances that may adversely affect the auditor's ability to plan and perform the audit engagementmanage and achieve quality at the engagement level in accordance with ASA 220.

70.               Existing paragraph A6 is amended to read as follows:

Performing these preliminary engagement activities enables the auditor to plan an audit engagement for whichin order to, for example:

           * The auditor maintainsMaintain the necessary independence and ability to perform the engagement.

           * ThereDetermine that there are no issues with management integrity that may affect the auditor's willingness to continue the engagement.

           * ThereDetermine that there is no misunderstanding with the client as to the terms of the engagement.

71.               Existing paragraph A7 is amended to read as follows and footnote * will be placed following  the wording "relevant ethical requirements":

The auditor's consideration of client continuance and relevant ethical requirements, including independence,* occurs throughout the audit engagement as conditions and changes in circumstances occur. Performing initial procedures on both client continuance and evaluation of relevant ethical requirements* (including independence) at the beginning of the current audit engagement means that they are completed prior to the performance of other significant activities for the current audit engagement. For continuing audit engagements, such initial procedures often occur shortly after (or in connection with) the completion of the previous audit.

72.               Existing paragraph A8 is amended to read as follows:

The process of establishing the overall audit strategy assists the auditor to determine, subject to the completion of the auditor's risk assessment procedures, may include such matters as:

           * The nature of resources (human, technological or intellectual) to be deployed for specific audit areas, such as. For example,  the usedeployment of appropriately experienced team members for high risk areas or the involvementassignment of experts onto address complex matters;

           * The amount of resources to allocatebe allocated to specific audit areas, such as. For example, the number of team members assigned to observeattend the physical inventory count at materialmultiple locations, the extent of review of other auditors' work in the case of group audits, or the audit budget in hours to allocate to high