Document ID: chunk:federal_register_of_legislation:F2023C01129:reg:11:p7
Version: federal_register_of_legislation:F2023C01129
Segment Type: reg
Provision Reference: reg 11 (pt 7/12)
Character Range: 25979–29044

balances and disclosures before planning all remaining further audit procedures.

A15.         Determining the nature, timing and extent of planned risk assessment procedures, and the further audit procedures, as they relate to disclosures is important in light of both the wide range of information and the level of detail that may be encompassed in those disclosures.  Further, certain disclosures may contain information that is obtained from outside of the general and subsidiary ledgers, which may also affect the assessed risks and the nature, timing and extent of audit procedures to address them.

A16.         Consideration of disclosures early in the audit assists the auditor in giving appropriate attention to, and planning adequate time for, addressing disclosures in the same way as classes of transactions, events and account balances.  Early consideration may also help the auditor to determine the effects on the audit of:

           * Significant new or revised disclosures required as a result of changes in the entity's environment, financial condition or activities (for example, a change in the required identification of segments and reporting of segment information arising from a significant business combination);

           * Significant new or revised disclosures arising from changes in the applicable financial reporting framework;

           * The need for the involvement of an auditor's expert to assist with audit procedures related to particular disclosures (for example, disclosures related to superannuation or other retirement benefit obligations); and

           * Matters relating to disclosures that the auditor may wish to discuss with those charged with governance.[12]

Changes to Planning Decisions during the Course of the Audit (Ref: Para. 10)

A17.         As a result of unexpected events, changes in conditions, or the audit evidence obtained from the results of audit procedures, the auditor may need to modify the overall audit strategy and audit plan and thereby the resulting planned nature, timing and extent of further audit procedures, based on the revised consideration of assessed risks.  This may be the case when information comes to the auditor's attention that differs significantly from the information available when the auditor planned the audit procedures.  For example, audit evidence obtained through the performance of substantive procedures may contradict the audit evidence obtained through tests of controls.

Direction, Supervision and Review (Ref: Para. 11)

A18.         ASA 220 deals with the engagement partner's responsibility for the nature, timing and extent of direction and supervision of the members of the engagement team and the review of their work. [13]

Documentation (Ref: Para. 12)

A19.         The documentation of the overall audit strategy is a record of the key decisions in managing quality at the engagement level and a means to communicate significant matters to the engagement team.  For example, the auditor may summarise the overall audit strategy in the form