Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p14
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 38771–41803

nature, timing and extent of the planned direction and supervision of engagement team members and the review of their work,[7] and the reasons for such changes. (Ref: Para. A18-A21)

63.               Existing paragraph 13 is amended to read as follows:

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

(a)                Performing procedures required by ASA 220 regarding the acceptance of the client relationships and the specific audit engagements;7 and

(b)                …

64.               Existing footnote 7 in paragraph 13 is amended to read as follows:

See ASA 220, paragraphs 12-1322-24.

65.               The following paragraph A1 is inserted before the sub-heading "The Role and Timing of Planning":

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 of resources necessary to perform the engagement in the overall strategy, as required by paragraph 8 of this ASA.

66.               As a result of the insertion of the paragraph above, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.

67.               Existing paragraph A1 is amended to read as follows:

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[8] describes how such techniques and tools may support the engagement team in managing the quality of the engagement.

68.               Existing paragraph A3 is amended to read as follows:

The auditor may decide to discuss elements of planning with the entity's management, or those charged with governance, to facilitate the conduct and management of the audit engagementhelp 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