Document ID: chunk:federal_register_of_legislation:F2021C01259:reg:11:p14
Version: federal_register_of_legislation:F2021C01259
Segment Type: reg
Provision Reference: reg 11 (pt 14/16)
Character Range: 46863–49944

a listed entity, and the risk that the auditor's report might not be appropriate in the circumstances.  The performance of an engagement quality control review does not reduce the responsibilities of the engagement partner for the audit engagement and its performance.

A29.         When ASA 701[13] applies, the conclusions reached by the engagement team in formulating the auditor's report include determining:

           * The key audit matters to be included in the auditor's report;

           * The key audit matters that will not be communicated in the auditor's report in accordance with paragraph 14 of ASA 701, if any; and

           * If applicable, depending on the facts and circumstances of the entity and the audit, that there are no key audit matters to communicate in the auditor's report.

In addition, the review of the proposed auditor's report in accordance with paragraph 20(b) includes consideration of the proposed wording to be included in the Key Audit Matters section.

Engagement Quality Control Review of Listed Entities (Ref: Para. Aus 21.1)

A30.         Other matters relevant to evaluating the significant judgements made by the engagement team that may be considered in an engagement quality control review of a listed entity include:

           * Significant risks identified during the engagement in accordance with ASA 315,[14] and the responses to those risks in accordance with ASA 330,[15] including the engagement team's assessment of, and response to, the risk of fraud in accordance with ASA 240.[16]

           * Judgements made, particularly with respect to materiality and significant risks.

           * The significance and disposition of corrected and uncorrected misstatements identified during the audit.

           * The matters to be communicated to management and those charged with governance and, where applicable, other parties such as regulatory bodies.

    These other matters, depending on the circumstances, may also be applicable for engagement quality control reviews for audits of financial reports of other entities.

Considerations Specific to Smaller Entities (Ref: Para. 20‑Aus 21.1)

A31.         In addition to the audits of financial reports of listed entities, an engagement quality control review is required for audit engagements that meet the criteria established by the firm that subjects engagements to an engagement quality control review.  In some cases, none of the firm's audit engagements may meet the criteria that would subject them to such a review.

Considerations Specific to Public Sector Entities (Ref: Para. 20‑Aus 21.1)

A32.         In the public sector, a statutorily appointed auditor (for example, an Auditor‑General, or other suitably qualified person appointed on behalf of the Auditor‑General), may act in a role equivalent to that of engagement partner with overall responsibility for public sector audits.  In such circumstances, where applicable, the selection of the engagement quality control reviewer includes consideration of the need for independence from the audited