Subdivision Tasks - ASIC Class Order [CO 12/1687] - Tasks

B.1 Planning

Identify the engagement objectives and any risks to be addressed during the engagement.
The engagement plan should, at a minimum address the risks, and the nature and extent of the planned audit work, in relation to the fund's financial statements and the trustee's compliance with the provisions of the SIS Act and Regulations identified in the report required under section 35C of the SIS Act.
The plan must be tailored to suit the engagement being undertaken.

B.2 Evidence gathering

Gather evidence relevant to the development of the engagement plan.
This evidence includes the trust deed, the fund’s investment strategy, financial statements and minutes and other relevant supporting documents.

B.3 Evidence evaluation

The gathered documents must be reviewed to identify any potential high risk engagement areas and the detailed documentation which will be required in connection with the performance of the engagement.

B.4 Decision making

Determine an appropriate materiality level.
Decide on the preferred engagement approach, based on the knowledge gained and the risks identified.
Decide on the preferred engagement approach to be undertaken in respect of SIS Act compliance.
Document the engagement plan.

Related knowledge requirements

Approved SMSF auditors must understand the requirements of auditing and assurance standards addressing engagement planning in relation to the tasks specified in paragraphs 18 to 27, including all of the following:

(a) understanding the entity and its environment and assessing the risks of material misstatement;

(b) consideration of fraud in an audit of financial statements;

(d) procedures in response to assessed risks.

Approved SMSF auditors must understand the requirements of the SIS Act (including the Regulations) in relation to the tasks specified in paragraphs 18 to 27.

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