Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p35
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 99899–103284

audit engagement enables significant matters to be resolved to the engagement partner's satisfaction on or before the date of the auditor's report. The engagement partner need not review all audit documentation.

A92.         The engagement partner exercises professional judgement in identifying the areas of significant judgement made by the engagement team. The firm's policies or procedures may specify certain matters that are commonly expected to be significant judgements. Significant judgements in relation to the audit engagement may include matters related to the overall audit strategy and audit plan for undertaking the engagement, the execution of the engagement and the overall conclusions reached by the engagement team, for example:

           * Matters related to planning the engagement, such as matters related to determining materiality.

           * The composition of the engagement team, including:

                   + Personnel using expertise in a specialised area of accounting or auditing;

                   + The use of personnel from service delivery centres.

           * The decision to involve an auditor's expert, including the decision to involve an external expert.

           * The engagement team's consideration of information obtained in the acceptance and continuance process and proposed responses to that information.

           * The engagement team's risk assessment process, including situations where consideration of inherent risk factors and the assessment of inherent risk requires significant judgement by the engagement team.

           * The engagement team's consideration of related party relationships and transactions and disclosures.

           * Results of the procedures performed by the engagement team on significant areas of the engagement, for example, conclusions in respect of certain accounting estimates, accounting policies or going concern considerations.

           * The engagement team's evaluation of the work performed by experts and conclusions drawn therefrom.

           * In group audit situations:

                   + The proposed overall group audit strategy and group audit plan;

                   + Decisions about the involvement of component auditors, including how to direct and supervise them and review their work; and

                   + The evaluation of work performed by component auditors and the conclusions drawn therefrom.

           * How matters affecting the overall audit strategy and audit plan have been addressed.

           * The significance and disposition of corrected and uncorrected misstatements identified during the engagement.

           * The proposed audit opinion and matters to be communicated in the auditor's report, for example, key audit matters, or a "Material Uncertainty Related to Going Concern" paragraph.

A93.         The engagement partner exercises professional judgement in determining other matters to review, for example based on:

           * The nature and circumstances of the audit engagement.

           * Which engagement team member performed the work.

           * Matters relating to recent inspection findings.

           * The requirements of the firm's policies or procedures.

Nature, Timing and Extent

A94.         The nature, timing and extent of the direction, supervision and review are required to be planned