Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p23
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 66176–69473

managing quality at the engagement level, ASA 220[43] permits the engagement partner to assign the design or performance of procedures, tasks or actions to other members of the engagement team to assist the engagement partner.  Accordingly, the group engagement partner may assign procedures, tasks or actions to other members of the engagement team and these members may assign procedures, tasks or actions further.  In such circumstances, ASA 220 requires that the engagement partner shall continue to take overall responsibility for managing and achieving quality on the audit engagement.

 2.          Policies or procedures established by the firm, or that are common network requirements or network services,[44] may support the group engagement partner by facilitating communication between the group auditor and component auditors and supporting the group auditor's direction and supervision of those component auditors and the review of their work.

 3.          ASA 220[45] explains that a culture that demonstrates a commitment to quality is shaped and reinforced by the engagement team members as they demonstrate expected behaviours when performing the engagement.  In addressing the requirement in paragraph 16(a), the group engagement partner may communicate directly to other members of the engagement team (including component auditors) and reinforce this communication through personal conduct and actions (e.g., leading by example).

Acceptance and Continuance

Determining Whether Sufficient and Appropriate Audit Evidence Can Reasonably Be Expected to Be Obtained (Ref: Para. 17–18)

 1.          In determining whether sufficient appropriate audit evidence can reasonably be expected to be obtained, the group engagement partner may obtain an understanding of matters such as:

           * The group structure, including both the legal and organisational structure.

           * Activities that are significant to the group, including the industry and regulatory, economic and political environments in which those activities take place.

           * The use of service organisations.

           * The use of shared service centres.

           * The consolidation process.

           * Whether the group auditor:

                   + Will have unrestricted access to those charged with governance of the group, group management, those charged with governance of the component, component management and component information, including of those components that are accounted for by the equity method; and

                   + Will be able to perform necessary work on the financial information of the components when applicable.

           * Whether sufficient and appropriate resources are assigned or will be made available.

 1.          In the case of an initial group audit engagement, the group auditor's understanding of the matters in paragraph A32 may be obtained from:

           * Information provided by group management;

           * Communication with group management;

           * Communication with those charged with governance of the group; and

           * When applicable, communication with component management or the predecessor auditor.

 1.          For a recurring engagement, the ability to obtain sufficient appropriate audit evidence