DefinitionsDefinitions

Definitions

8 In this Auditing Standard, the following terms have the meanings attributed below:

(a) “Engagement partner” means the partner or other person in the firm who is responsible for the audit engagement and its performance, and for the auditor’s report that is issued on behalf of the firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body.

(b) “Engagement quality control review” means a process designed to provide an objective evaluation, before the auditor’s report is issued, of the significant judgements the engagement team made and the conclusions they reached in formulating the auditor’s report.

(c) “Engagement quality control reviewer” means a partner, other person in the firm, suitably qualified external person, or a team made up of such individuals, with sufficient and appropriate experience and authority to objectively evaluate, before the auditor’s report is issued, the significant judgements the engagement team made and the conclusions they reached in formulating the auditor’s report.

(d) “Engagement team” means all personnel performing an audit engagement, including any experts contracted by the firm in connection with that audit engagement.

(e) “Firm” means a sole practitioner, partnership, corporation or other entity of professional accountants.

(f) “Inspection” means in relation to completed audit engagements, procedures designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures.

(g) “Listed entity” means an entity whose shares, stock or debt are quoted or listed on a recognised stock exchange, or are marketed under the regulations of a recognised stock exchange or other equivalent body.

(h) “Monitoring” means a process comprising an ongoing consideration and evaluation of the firm’s system of quality control, including a periodic inspection of a selection of completed engagements, designed to enable the firm to obtain reasonable assurance that its system of quality control is operating effectively.

(i) “Network firm” means an entity under common control, ownership or management with the firm or any entity that a reasonable and informed third party having knowledge of all relevant information would reasonably conclude as being part of the firm nationally or internationally.

(j) “Partner” means any individual with authority to bind the firm with respect to the performance of a professional auditing engagement.

(k) “Personnel” means partners and staff.

(l) “Professional accounting body” includes:

The Institute of Chartered Accountants in Australia;
CPA Australia; and
National Institute of Accountants.