Engagement PerformanceEngagement Performance

Engagement Performance

1. The firm shall establish policies and procedures designed to provide it with reasonable assurance that engagements are performed in accordance with AUASB Standards, relevant ethical requirements, and applicable legal and regulatory requirements, and that the firm or the engagement partner issue reports that are appropriate in the circumstances. Such policies and procedures shall include:
   1. Matters relevant to promoting consistency in the quality of engagement performance; (Ref: Para. A32‑A33)
   2. Supervision responsibilities; and (Ref: Para. A34)
   3. Review responsibilities. (Ref: Para. A35)
2. The firm’s review responsibility policies and procedures shall be determined on the basis that work of less experienced engagement team members is reviewed by more experienced engagement team members.

Consultation

1. The firm shall establish policies and procedures designed to provide it with reasonable assurance that:
   1. Appropriate consultation takes place on difficult or contentious matters;
   2. Sufficient resources are available to enable appropriate consultation to take place;
   3. The nature and scope of, and conclusions resulting from, such consultations are documented and are agreed by both the individual seeking consultation and the individual consulted; and
   4. Conclusions resulting from consultations are implemented; or

Aus 34.1 The reasons alternative courses of action from consultations were undertaken, are documented. (Ref: Para. A36‑A40)

Engagement Quality Control Review

1. The firm shall establish policies and procedures requiring, for appropriate engagements, an engagement quality control review that provides an objective evaluation of the significant judgements made by the engagement team and the conclusions reached in formulating the report. Such policies and procedures shall:
   1. Require an engagement quality control review for all audits of financial reports of listed entities;
   2. Set out criteria against which all other audits and reviews of historical financial information, other assurance engagements and related services engagements shall be evaluated to determine whether an engagement quality control review should be performed; and (Ref: Para. A41)
   3. Require an engagement quality control review for all engagements, if any, meeting the criteria established in compliance with subparagraph 35(b) of this Standard.
2. The firm shall establish policies and procedures setting out the nature, timing and extent of an engagement quality control review. Such policies and procedures shall require that the engagement report not be dated until the completion of the engagement quality control review. (Ref: Para. A42‑A43)