Document ID: chunk:federal_register_of_legislation:F2021C01259:reg:11:p10
Version: federal_register_of_legislation:F2021C01259
Segment Type: reg
Provision Reference: reg 11 (pt 10/16)
Character Range: 35139–38368

engagements are appropriate:

           * The integrity of the principal owners, key management and those charged with governance of the entity;

           * Whether the engagement team is competent to perform the audit engagement and has the necessary capabilities, including time and resources;

           * Whether the firm and the engagement team can comply with relevant ethical requirements; and

           * Significant matters that have arisen during the current or previous audit engagement, and their implications for continuing the relationship.

A9.             Law, regulation, or relevant ethical requirements[6] may require the auditor to request, prior to accepting the engagement, the predecessor auditor to provide known information regarding any facts or circumstances that, in the predecessor auditor's judgement, the auditor needs to be aware of before deciding whether to accept the engagement. In some circumstances, the predecessor auditor may be required, on request by the proposed successor auditor, to provide information regarding identified or suspected non‑compliance with laws and regulations to the proposed successor auditor. For example, where the predecessor auditor has withdrawn from the engagement as a result of identified or suspected non‑compliance with laws and regulations, the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) requires that the predecessor auditor, on request by a proposed successor auditor, provides all such facts and other information concerning such non‑compliance that, in the predecessor auditor's opinion, the proposed successor auditor needs to be aware of before deciding whether to accept the audit appointment.[7]

Considerations Specific to Public Sector Entities (Ref: Para. 12‑13)

A10.         In the public sector, auditors may be appointed in accordance with statutory procedures.  Accordingly, certain of the requirements and considerations regarding the acceptance and continuance of client relationships and audit engagements as set out in paragraphs 12, 13 and A8 may not be relevant.  Nonetheless, information gathered as a result of the process described may be valuable to public sector auditors in performing risk assessments and in carrying out reporting responsibilities.

Assignment of Engagement Teams (Ref: Para. 14)

A11.         An engagement team includes a person using expertise in a specialised area of accounting or auditing, whether engaged or employed by the firm, if any, who performs audit procedures on the engagement.  However, a person with such expertise is not a member of the engagement team, if that person's involvement with the engagement is only consultation.  Consultations are addressed in paragraph 18, and paragraphs A22‑A23.

A12.         When considering the appropriate competence and capabilities expected of the engagement team as a whole, the engagement partner may take into consideration such matters as the team's:

           * Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.

           * Understanding of Australian Auditing Standards, relevant