Document ID: chunk:federal_register_of_legislation:F2017C00509:body:0:p9
Version: federal_register_of_legislation:F2017C00509
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as to who will receive a copy of the assurance engagement report.

3.4  Assurance engagement terms to be agreed
 (1) The audit team leader must ensure that the assurance engagement terms are agreed to in writing by:
 (a) the Regulator, if the Regulator appoints the audit team leader to carry out the assurance engagement; or
 (b) the audited body, if the audited body appoints the audit team leader to carry out the assurance engagement.
 (2) The terms must:
 (a) state if the terms have been agreed to by the audit team leader and the person who appointed the audit team leader to carry out the assurance engagement; and
 (b) be signed by the audit team leader and the person who appointed the audit team leader.
 (3) If the terms are not so agreed and signed, the audit team leader must not carry out the assurance engagement and must inform the Regulator in writing accordingly.
 (4) If the terms are amended during the carrying out of the audit, the amendment of the terms of engagement must:
 (a) state the amendment and indicate if the amendment has been agreed to by the audit team leader and the person who appointed the audit team leader to carry out the assurance engagement; and
 (b) be signed by the audit team leader and the person who appointed the audit team leader.

Division 3.3—Requirements relating to planning and performing assurance engagement

Subdivision 3.3.1—Overview of Division

3.5  Overview of Division
 (1) The following is an overview of this Division.
 (2) An assurance engagement is a cumulative and iterative process the goal of which is to find sufficient evidence to support the giving of either a reasonable or limited assurance conclusion, as the case requires. In carrying out the assurance engagement, the audit team leader must use his or her professional judgment.
 (3) The assurance engagement needs to be planned so that it is carried out efficiently and effectively.
 (4) The assurance engagement must be carried out:
 (a) by performing risk assessments; and
 (b) if the audit team leader considers it necessary or appropriate to do so following a risk assessment—by doing either or both of the following:
 (i) using procedures designed to detect misstatements that are material in the matter being audited;
 (ii) undertaking tests of systems and processes of the audited body.
 (5) The audit team leader must gather evidence relating to the matter being audited and, if misstatements are found in the matter, assess the materiality of those misstatements.
 (6) At the end of the assurance engagement, the audit team leader must form a conclusion about the reliability, accuracy and completeness of the matter being audited and, in particular, if there are any misstatements in