Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p16
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 44464–47498

example, the number of team members assigned to observeattend the physical inventory count at materialmultiple locations, the extent of review of other auditors' work in the case of group audits, or the audit budget in hours to allocate to high risk areas;

           * …

           * How such resources are managed, directed, and supervised, such as or used. For example, when team briefing and debriefing meetings are expected to be held, how engagement partner and manager reviews are expected to take place (for example, on-site or off-site), and whether to complete engagement quality control reviews.

73.               The following paragraph A9 is inserted following existing paragraph A8 of this Auditing Standard:

ASA 220 contains requirements and guidance on engagement resources and engagement performance (including direction and supervision of the members of the engagement team and the review of their work).

74.               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.

75.               Existing paragraph A16 is amended to read as follows:

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.The nature, timing and extent of the direction and supervision of engagement team members and review of their work vary depending on many factors, including:

           * The size and complexity of the entity.

           * The area of the audit.

           * The assessed risks of material misstatement (for example, an increase in the assessed risk of material misstatement for a given area of the audit ordinarily requires a corresponding increase in the extent and timeliness of direction and supervision of engagement team members, and a more detailed review of their work).

           * The capabilities and competence of the individual team members performing the audit work.

ASA 220 contains further guidance on the direction, supervision and review of audit work.10

76.               Existing footnote 10 in paragraph A16 is amended to read as follows:

See ASA 220, paragraphs 15-1729-31.

77.               Existing paragraph A17 is deleted and subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.

78.               Existing paragraph A18 is amended to read as follows:

The documentation of the overall audit strategy is a record of the key decisions considered necessary to properly plan the audit andin 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 of a memorandum that contains key decisions regarding the overall scope, timing and conduct of the audit.

79.               The following paragraph A21 is inserted