Document ID: chunk:federal_register_of_legislation:F2023C01129:reg:11:p4
Version: federal_register_of_legislation:F2023C01129
Segment Type: reg
Provision Reference: reg 11 (pt 4/12)
Character Range: 17744–20776

appropriate resources to perform the engagement have been assigned or made available to the engagement team, taking into account the nature and circumstances of the audit engagement. Such a determination is directly relevant when ascertaining the nature, timing and extent of resources necessary to perform the engagement in the overall strategy, as required by paragraph 8 of this ASA.

The Role and Timing of Planning (Ref: Para. 2)

A2.             The nature and extent of planning activities will vary according to the size and complexity of the entity, the key engagement team members' previous experience with the entity, and changes in circumstances that occur during the audit engagement. In planning the audit, the auditor may use project management techniques and tools. ASA 220[10] describes how such techniques and tools may support the engagement team in managing the quality of the engagement.

A3.             Planning is not a discrete phase of an audit, but rather a continual and iterative process that often begins shortly after (or in connection with) the completion of the previous audit and continues until the completion of the current audit engagement.  Planning, however, includes consideration of the timing of certain activities and audit procedures that need to be completed prior to the performance of further audit procedures.  For example, planning includes the need to consider, prior to the auditor's identification and assessment of the risks of material misstatement, such matters as:

           * The analytical procedures to be applied as risk assessment procedures.

           * Obtaining a general understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework.

           * The determination of materiality.

           * The involvement of experts.

           * The performance of other risk assessment procedures.

A4.             The auditor may decide to discuss elements of planning with the entity's management, or those charged with governance, to help the auditor manage and achieve quality at the engagement level (for example, to co‑ordinate some of the planned audit procedures with the work of the entity's personnel).  Although these discussions often occur, the overall 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.

Involvement of Key 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