Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p26
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 73797–76996

engagements.

A51.         Information such as the following may assist the engagement partner in determining whether the conclusions reached regarding the acceptance and continuance of client relationships and audit engagements are appropriate:

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

           * Whether sufficient and appropriate resources are available to perform the engagement;

           * Whether management and those charged with governance have acknowledged their responsibilities in relation to the engagement;

           * Whether the engagement team has the competence and capabilities, including sufficient time, to perform the engagement; and

           * Whether significant matters that have arisen during the current or previous engagement have implications for continuing the engagement.

A52.         Under ASQM 1, for acceptance and continuance decisions, the firm is required to make judgements about the firm's ability to perform the engagement in accordance with Australian Auditing Standards and applicable legal and regulatory requirements. The engagement partner may use the information considered by the firm in this regard in determining whether the conclusions reached regarding the acceptance and continuance of client relationships and audit engagements are appropriate. If the engagement partner has concerns regarding the appropriateness of the conclusions reached, the engagement partner may discuss the basis for those conclusions with those involved in the acceptance and continuance process.

A53.         If the engagement partner is directly involved throughout the firm's acceptance and continuance process, the engagement partner will be aware of the information obtained or used by the firm, in reaching the related conclusions. Such direct involvement may also provide a basis for the engagement partner's determination that the firm's policies or procedures have been followed and that the conclusions reached are appropriate.

A54.         Information obtained during the acceptance and continuance process may assist the engagement partner in complying with the requirements of this ASA and making informed decisions about appropriate courses of action. Such information may include:

           * Information about the size, complexity and nature of the entity, including whether it is a group audit, the industry in which it operates and the applicable financial reporting framework;

           * The entity's timetable for reporting, such as at interim and final stages;

           * In relation to group audits, the nature of the control relationships between the parent and its entities and business units; and

           * Whether there have been changes in the entity or in the industry in which the entity operates since the previous audit engagement that may affect the nature of resources required, as well as the manner in which the work of the engagement team will be directed, supervised and reviewed.

A55.         Information obtained during acceptance and continuance may also be relevant in complying with the requirements of other