Document ID: chunk:federal_register_of_legislation:F2021C01259:reg:11:p12
Version: federal_register_of_legislation:F2021C01259
Segment Type: reg
Provision Reference: reg 11 (pt 12/16)
Character Range: 41113–44348

audit engagement, considering their significance and modifying the planned approach appropriately.

           * Identifying matters for consultation or consideration by more experienced engagement team members during the audit engagement.

Reviews

Review Responsibilities (Ref: Para. 16)

A17.         Under ASQC 1, the firm's review responsibility policies and procedures are determined on the basis that work of less experienced engagement team members is reviewed by more experienced engagement team members.[9]

A18.         A review consists of consideration whether, for example:

           * The work has been performed in accordance with Australian Auditing Standards, relevant ethical requirements, and applicable legal and regulatory requirements;

           * Significant matters have been raised for further consideration;

           * Appropriate consultations have taken place and the resulting conclusions have been documented and implemented;

           * There is a need to revise the nature, timing and extent of work performed;

           * The work performed supports the conclusions reached and is appropriately documented;

           * The evidence obtained is sufficient and appropriate to support the auditor's report; and

           * The objectives of the engagement procedures have been achieved.

The Engagement Partner's Review of Work Performed (Ref: Para. 17)

A19.         Timely reviews of the following by the engagement partner at appropriate stages during the engagement allow significant matters to be resolved on a timely basis to the engagement partner's satisfaction on or before the date of the auditor's report:

           * Critical areas of judgement, especially those relating to difficult or contentious matters identified during the course of the engagement;

           * Significant risks; and

           * Other areas the engagement partner considers important.

    The engagement partner need not review all audit documentation, but may do so.  However, as required by ASA 230, the partner documents the extent and timing of the reviews.[10]

A20.         An engagement partner taking over an audit during the engagement may apply the review procedures as described in paragraph A18 to review the work performed to the date when that partner assumes the responsibilities of engagement partner.

Considerations Relevant Where a Member of the Engagement Team with Expertise in a Specialised Area of Accounting or Auditing Is Used (Ref: Para. 15‑17)

A21.         Where a member of the engagement team with expertise in a specialised area of accounting or auditing is used, direction, supervision and review of that engagement team member's work may include matters such as:

           * Agreeing with that member the nature, scope and objectives of that member's work; and the respective roles of, and the nature, timing and extent of communication between that member and other members of the engagement team.

           * Evaluating the adequacy of that member's work including the relevance and reasonableness of that member's findings or conclusions and their consistency with other audit evidence.

Consultation (Ref: Para. 18)

A22.         Effective consultation on