Document ID: chunk:federal_register_of_legislation:F2021C01259:reg:11:p5
Version: federal_register_of_legislation:F2021C01259
Segment Type: reg
Provision Reference: reg 11 (pt 5/16)
Character Range: 19993–23340

that partner is assigned.  (Ref: Para. A3)

Relevant Ethical Requirements

9.                   Throughout the audit engagement, the engagement partner shall remain alert, through observation and making enquiries as necessary, for evidence of breaches of relevant ethical requirements by members of the engagement team.  (Ref: Para. A4‑A5)

10.               If matters come to the engagement partner's attention through the firm's system of quality control or otherwise that indicate that members of the engagement team have breached relevant ethical requirements, the engagement partner, in consultation with others in the firm, shall determine the appropriate action.  (Ref: Para. A5)

Independence

11.               The engagement partner shall form a conclusion on compliance with independence requirements that apply to the audit engagement.  In doing so, the engagement partner shall: (Ref: Para. A5‑Aus A5.1)

(a)                Obtain relevant information from the firm and, where applicable, network firms, to identify and evaluate threats to independence;

(b)                Evaluate information on identified breaches, if any, of the firm's independence policies and procedures to determine whether they create a threat to independence for the audit engagement;

(c)                Evaluate whether the identified threats are at an acceptable level; and

(d)                Take appropriate action to address the threats that are not at an acceptable level by eliminating the circumstances that create the threats, applying safeguards to reduce threats to an acceptable level, or withdrawing from the audit engagement, where withdrawal is possible under applicable law or regulation.  The engagement partner shall promptly report to the firm any inability to resolve the matter for appropriate action.  (Ref: Para. Aus A5.1, A6‑A7)

Acceptance and Continuance of Client Relationships and Audit Engagements

12.               The engagement partner shall be satisfied that appropriate procedures regarding the acceptance and continuance of client relationships and audit engagements have been followed, and shall determine that conclusions reached in this regard are appropriate.  (Ref: Para. A9‑A10)

13.               If the engagement partner obtains information that would have caused the firm to decline the audit engagement had that information been available earlier, the engagement partner shall communicate that information promptly to the firm, so that the firm and the engagement partner can take the necessary action.  (Ref: Para. A10)

Assignment of Engagement Teams

14.               The engagement partner shall be satisfied that the engagement team, and any auditor's experts who are not part of the engagement team, collectively have the appropriate competence and capabilities to:

(a)                Perform the audit engagement in accordance with Australian Auditing Standards, relevant ethical requirements, and applicable legal and regulatory requirements; and

(b)                Enable an auditor's report that is appropriate in the circumstances to be issued.  (Ref: Para. A11‑A13)

Engagement Performance

Direction, Supervision and Performance

15.               The engagement partner shall take responsibility for:

(a)                The direction, supervision and performance of the audit engagement in