Document ID: chunk:federal_register_of_legislation:F2023C01138:reg:4:p12
Version: federal_register_of_legislation:F2023C01138
Segment Type: reg
Provision Reference: reg 4 (pt 12/43)
Character Range: 38214–41148

direction and supervision of the members of the engagement team and the review of their work,[10] and determine that the nature, timing and extent of direction, supervision and review is planned and performed in accordance with the firm's policies or procedures, Australian Auditing Standards and applicable legal and regulatory requirements.[11] In the context of this Auditing Standard, factors that may be taken into account when determining the appropriate engagement team members to address the requirements of paragraphs 14–15, include:

           * The relative experience of engagement team members.

           * Whether the engagement team members to be assigned the tasks have the relevant knowledge obtained in the audit to identify inconsistencies between the other information and that knowledge.

           * The degree of judgement involved in addressing the requirements of paragraph 14–15.  For example, performing procedures to evaluate the consistency of amounts in the other information that are intended to be the same as amounts in the financial report may be carried out by less experienced engagement team members.

           * Whether, in the case of a group audit, it is necessary to make enquiries of a component auditor in addressing the other information related to that component.

Considering Whether There is a Material Inconsistency between the Other Information and the Financial Report (Ref: Para. 14(a))

A25.         Other information may include amounts or other items that are intended to be the same as, to summarise, or to provide greater detail about, the amounts or other items in the financial report.  Examples of such amounts or other items may include:

           * Tables, charts or graphs containing extracts of the financial report.

           * A disclosure providing greater detail about a balance or account shown in the financial report, such as "Revenue for 20X1 comprised XXX million from product X and YYY million from product Y."

           * Descriptions of the financial results, such as "Total research and development expense was XXX in 20X1."

A26.         In evaluating the consistency of selected amounts or other items in the other information with the financial report, the auditor is not required to compare all amounts or other items in the other information that are intended to be the same as, to summarise, or to provide greater detail about, the amounts or other items in the financial report, with such amounts or other items in the financial report.

A27.         Selecting the amounts or other items to compare is a matter of professional judgement.  Factors relevant to this judgement include:

           * The significance of the amount or other item in the context in which it is presented, which may affect the importance that users would attach to the amount or other item (for example, a key ratio or amount).

           * If quantitative, the