Assignment of Engagement Teams (Ref: ParAssignment of Engagement Teams (Ref: Para. 14)

Assignment of Engagement Teams (Ref: Para. 14)

1. 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.
2. 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 ethical requirements, and applicable legal and regulatory requirements.
• Technical expertise, including expertise with relevant information technology and specialised areas of accounting or auditing.
• Knowledge of relevant industries in which the client operates.
• Ability to apply professional judgement.
• Understanding of the firm’s quality control policies and procedures.

Considerations Specific to Public Sector Entities

1. In the public sector, additional appropriate competence may include skills that are necessary to discharge the terms of the audit mandate in a particular jurisdiction. Such competence may include an understanding of the applicable reporting arrangements, including reporting to the legislature or other governing body or in the public interest. The wider scope of a public sector audit may include, for example, some aspects of performance auditing or a comprehensive assessment of compliance with law, regulation or other authority and preventing and detecting fraud and corruption.