Document ID: chunk:federal_register_of_legislation:F2023C01129:reg:11:p3
Version: federal_register_of_legislation:F2023C01129
Segment Type: reg
Provision Reference: reg 11 (pt 3/12)
Character Range: 14750–18016

of the communications required;

(c)                Consider the factors that, in the auditor's professional judgement, are significant in directing the engagement team's efforts;

(d)                Consider the results of preliminary engagement activities and, where applicable, whether knowledge gained on other engagements performed by the engagement partner for the entity is relevant; and

(e)                Ascertain the nature, timing and extent of resources necessary to perform the engagement.[4]  (Ref: Para. A9‑A13)

9.                   The auditor shall develop an audit plan that shall include a description of:

(a)                The nature, timing and extent of the planned direction and supervision of engagement team members and the review of their work. (Ref: Para. A18–A19)

(b)                The nature, timing and extent of planned risk assessment procedures, as determined under ASA 315.[5]

(c)                The nature, timing and extent of planned further audit procedures at the assertion level, as determined under ASA 330.[6]

(d)                Other planned audit procedures that are required to be carried out so that the engagement complies with the Australian Auditing Standards.  (Ref: Para. A14‑A16)

10.               The auditor shall update and change the overall audit strategy and the audit plan as necessary during the course of the audit.  (Ref: Para. A17)

11.               The engagement partner shall review the overall audit strategy and audit plan.

Documentation

12.               The auditor shall include in the audit documentation:[7]

(a)                The overall audit strategy;

(b)                The audit plan; and

(c)                Any significant changes made during the audit engagement to the overall audit strategy or the audit plan, including significant changes to the nature, timing and extent of the planned direction and supervision of engagement team members and the review of their work,[8] and the reasons for such changes.  (Ref: Para. A19‑A23)

Additional Considerations in Initial Audit Engagements

13.               The auditor shall undertake the following activities prior to starting an initial audit:

(a)                Performing procedures required by ASA 220 regarding the acceptance of client relationships and audit engagements;[9] and

(b)                Communicating with the predecessor auditor, where there has been a change of auditors, in compliance with relevant ethical requirements.  (Ref: Para. A24)

* * *

Application and Other Explanatory Material

A1.             ASA 220 deals with the specific responsibilities of the auditor regarding quality management at the engagement level for an audit of financial reports, and the related responsibilities of the engagement partner. Information obtained from complying with the requirements of ASA 220 is relevant to this ASA. For example, in accordance with ASA 220, the engagement partner is required to determine that sufficient and 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