Engagement PerformanceEngagement Performance

Engagement Performance

Direction, Supervision and Review

1. The engagement partner shall take responsibility for the direction and supervision of the members of the engagement team and the review of their work. (Ref: Para. A80)
2. The engagement partner shall determine that the nature, timing and extent of direction, supervision and review is: (Ref: Para. A81–A89, A94–A97)
   1. Planned[7] and performed in accordance with the firm’s policies or procedures, Australian Auditing Standards and applicable legal and regulatory requirements; and
   2. Responsive to the nature and circumstances of the audit engagement and the resources assigned or made available to the engagement team by the firm.
3. The engagement partner shall review audit documentation at appropriate points in time during the audit engagement, including audit documentation relating to: (Ref: Para. A90–A93)
   1. Significant matters;[8]
   2. Significant judgements, including those relating to difficult or contentious matters identified during the audit engagement, and the conclusions reached; and
   3. Other matters that, in the engagement partner’s professional judgement, are relevant to the engagement partner’s responsibilities.
4. On or before the date of the auditor’s report, the engagement partner shall determine, through review of audit documentation and discussion with the engagement team, that sufficient appropriate audit evidence has been obtained to support the conclusions reached and for the auditor’s report to be issued. (Ref: Para. A90–A94)
5. Prior to dating the auditor’s report, the engagement partner shall review the financial report and the auditor’s report, including, if applicable, the description of the key audit matters[9] and related audit documentation, to determine that the report to be issued will be appropriate in the circumstances.[10]
6. The engagement partner shall review, prior to their issuance, formal written communications to management, those charged with governance or regulatory authorities. (Ref: Para. A98)

Consultation

1. The engagement partner shall: (Ref: Para. A99–A102)
   1. Take responsibility for the engagement team undertaking consultation on:
      1. Difficult or contentious matters and matters on which the firm’s policies or procedures require consultation; and
      2. Other matters that, in the engagement partner’s professional judgement, require consultation;
   2. Determine that members of the engagement team have undertaken appropriate consultation during the audit engagement, both within the engagement team, and between the engagement team and others at the appropriate level within or outside the firm;