Document ID: chunk:federal_register_of_legislation:F2023C01129:reg:11:p5
Version: federal_register_of_legislation:F2023C01129
Segment Type: reg
Provision Reference: reg 11 (pt 5/12)
Character Range: 20506–23601

Engagement Team Members (Ref: Para. 5)

A5.             The involvement of the engagement partner and other key members of the engagement team in planning the audit draws on their experience and insight, thereby enhancing the effectiveness and efficiency of the planning process.[11]

Preliminary Engagement Activities (Ref: Para. 6)

A6.             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 manage and achieve quality at the engagement level in accordance with ASA 220.

A7.             Performing these preliminary engagement activities enables the auditor to plan an audit engagement in order to, for example:

           * Maintain the necessary independence and ability to perform the engagement.

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

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

A8.             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.

Planning Activities

The Overall Audit Strategy (Ref: Para. 7‑8)

A9.             The process of establishing the overall audit strategy, 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. For example, the deployment of experienced team members for high risk areas or the assignment of experts to address complex matters;

           * The amount of resources to be allocated to specific audit areas. For example, the number of team members assigned to attend the physical inventory count at multiple locations, the nature and extent of direction and supervision of component auditors and the review of their work in the case of group audits, or the audit budget in hours to allocate to high risk areas;

           * When these resources are to be deployed, such as whether at an interim audit stage or at key cut‑off dates; and

           * How such resources are directed, supervised or used. For example, when team briefing and debriefing meetings are expected to be held, how engagement partner and manager reviews are expected to take place (for example, on‑site or off‑site).

A10.         ASA 220 contains requirements and guidance on engagement resources and engagement performance (including direction and supervision of the members of the engagement team and the review of their work).