Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p30
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 85310–88525

For this purpose, the engagement team may be required, in accordance with the firm's policies or procedures, to use the firm's audit methodology and specific tools and guidance. The engagement team may also consider whether the use of other intellectual resources is appropriate and relevant based on the nature and circumstances of the engagement, for example, an industry specific methodology or related guides and performance aids.

Sufficient and Appropriate Resources to Perform the Engagement (Ref: Para. 25)

A71.         In determining whether sufficient and appropriate resources to perform the engagement have been assigned or made available to the engagement team, ordinarily the engagement partner may depend on the firm's related policies or procedures (including resources) as described in paragraph A6. For example, based on information communicated by the firm, the engagement partner may be able to depend on the firm's technological development, implementation and maintenance programs when using firm-approved technology to perform audit procedures.

Competence and Capabilities of the Engagement Team (Ref: Para. 26)

A72.         When determining that the engagement team has the appropriate competence and capabilities, the engagement partner may take into consideration such matters as the team's:

           * Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.

           * Understanding of Australian Auditing Standards and applicable legal and regulatory requirements.

           * Expertise in specialised areas of accounting or auditing.

           * Expertise in IT used by the entity or automated tools or techniques that are to be used by the engagement team in planning and performing the audit engagement.

           * Knowledge of relevant industries in which the entity being audited operates.

           * Ability to exercise professional scepticism and professional judgement.

           * Understanding of the firm's policies or procedures.

A73.         Internal auditors and an auditor's external expert are not members of the engagement team. ASA 610[36] and ASA 620[37] include requirements and guidance relating to the assessment of the competence and capabilities of internal auditors and an auditor's external expert, respectively.

Project Management

A74.         In situations where there are many engagement team members, for example in an audit of a larger or more complex entity, the engagement partner may involve an individual who has specialised skills or knowledge in project management, supported by appropriate technological and intellectual resources of the firm. Conversely, in an audit of a less complex entity with few engagement team members, project management may be achieved by a member of the engagement team through less formal means.

A75.         Project management techniques and tools may support the engagement team in managing the quality of the audit engagement by, for example:

           * Increasing the engagement team's ability to exercise professional scepticism through alleviating budget or time constraints that may otherwise