Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p79
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 259149–262554

circumstances of the engagement are more complex (e.g., when there are members of the engagement team spread across multiple jurisdictions), it may be necessary for the engagement leader to assign direction, supervision, and review to other members of the engagement team. However, as part of the engagement leader's overall responsibility for managing and achieving quality on the engagement and to be sufficiently and appropriately involved, the engagement leader is required to determine that the nature, timing and extent of direction, supervision and review is undertaken in accordance with paragraph 47. In such circumstances, personnel or members of the engagement team may provide information to the engagement leader to enable the engagement leader to make the determination required by paragraph 47.

Direction

 1.       Direction of the engagement team may involve informing the members of the engagement team of their responsibilities, such as:

           * Contributing to the management and achievement of quality at the engagement level through their personal conduct, communication and actions.

           * Maintaining a questioning mind and being aware of unconscious or conscious biases in exercising professional scepticism when gathering and evaluating evidence.

           * Addressing threats to the achievement of quality, and the engagement team's expected response. For example, budget constraints or resource constraints should not result in the engagement team members modifying planned procedures or failing to perform planned procedures.

           * Fulfilling relevant ethical requirements.

           * Understanding the objectives of the work to be performed and the detailed instructions regarding the nature, timing and extent of planned assurance procedures.

           * The responsibilities of respective engagement team members to perform procedures, and of more experienced engagement team members to direct, supervise and review the work of less experienced engagement team members.

Supervision

 1.       Supervision may include matters such as:

           * Tracking the progress of the engagement, which includes monitoring:

                   + The progress against the engagement plan;

                   + Whether the objective of work performed has been achieved; and

                   + The ongoing adequacy of assigned resources.

           * Taking appropriate action to address issues arising during the engagement, including for example, reassigning planned procedures to more experienced engagement team members when issues are more complex than initially anticipated.

           * Identifying matters for consultation or consideration by more experienced engagement team members during the engagement.

           * Providing coaching and on-the-job training to help engagement team members develop skills or competencies.

           * Creating an environment where engagement team members raise concerns without fear of reprisals.

Review

 1.       Review of the engagement team's work consists of consideration of whether, for example:

           * The work has been performed in accordance with the firm's policies or procedures, professional requirements and applicable legal and regulatory requirements.

           * Significant matters have been raised for further consideration.

           * Appropriate consultations have