Document ID: chunk:federal_register_of_legislation:F2023C01129:reg:11:p11
Version: federal_register_of_legislation:F2023C01129
Segment Type: reg
Provision Reference: reg 11 (pt 11/12)
Character Range: 37142–40333

manner in which the auditor emphasises to engagement team members the need to maintain a questioning mind and to exercise professional scepticism in gathering and evaluating audit evidence.

      * Results of previous audits that involved evaluating the operating effectiveness of internal control, including the nature of identified deficiencies and action taken to address them.

      * The discussion of matters that may affect the audit with firm personnel responsible for performing other services to the entity.

      * Evidence of management's commitment to the design, implementation and maintenance of sound internal control, including evidence of appropriate documentation of such internal control.

      * Changes within the applicable financial reporting framework, such as changes in accounting standards, which may involve significant new or revised disclosures.

      * Volume of transactions, which may determine whether it is more efficient for the auditor to rely on internal control.

      * The process(es) management uses to identify and prepare the disclosures required by the applicable financial reporting framework, including disclosures containing information that is obtained from outside of the general and subsidiary ledgers.

      * Importance attached to internal control throughout the entity to the successful operation of the business.

      * Significant business developments affecting the entity, including changes in information technology and business processes, changes in key management, and acquisitions, mergers and divestments.

      * Significant industry developments such as changes in industry regulations and new reporting requirements.

      * Other significant relevant developments, such as changes in the legal environment affecting the entity.

Nature, Timing and Extent of Resources

      * The human, technological and intellectual resources assigned or made available to the engagement (e.g., assignment of the engagement team and the assignment of audit work to the team members, including the assignment of appropriately experienced team members to areas where there may be higher risks of material misstatement).

      * Engagement budgeting, including considering the appropriate amount of time to set aside for areas where there may be higher risks of material misstatement.

[*]  Early adoption, in conjunction with ASA 315 Identifying and Assessing the Risks of Material Misstatement, permitted.
[1]   See ASA 220 Quality Management for an Audit of a Financial Report and Other Historical Financial Information, paragraphs 22‑24.
[2]   See ASA 220, paragraphs 16‑21.
[3]   See ASA 210 Agreeing the Terms of Audit Engagements, paragraphs 9‑13.
[4]  See ASA 220, paragraph 25.
[5]   See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment.
[6]   See ASA 330 The Auditor's Responses to Assessed Risks.
[7]   See ASA 230 Audit Documentation, paragraphs 8‑11 and paragraph A6.
[8]  See ASA 220, paragraphs 30 and A91-A92.
[9]   See ASA 220, paragraphs 22‑24.
[10]  See ASA 220, paragraphs A73-A74.
[11] ASA 315, paragraph 17, establishes requirements