ACCA AAA ^INT Syllabus C. Practice Management - Engagement Performance - Notes ^{4 / 6}

Directing the engagement team means telling them about:

1. Their ethical responsibilities

2. Their need to plan and perform an audit with professional skepticism

3. The objectives of the work to be performed

4. The nature of the entity’s business

5. Risk-related issues

6. Problems that may arise

7. The detailed approach to the performance of the engagement

Supervision includes:

• Seeing if the team has enough time and competence to do their job

  Also whether they understand their instructions

• Addressing significant matters arising during the audit and modifying the plan appropriately

• Identifying matters for consultation with experienced engagement team members

Reviews include:

• Ensuring that work of less experienced team members is reviewed by more experienced ones

• Ensuring that significant matters have been raised for further consideration

• Appropriate consultations have happened

• The work performed supports the conclusions reached and is appropriately documented

This involves timely reviews of the following:

1. Critical areas of judgment

2. Significant risks

Note the following:

• It helps to see if sufficient appropriate evidence has been obtained

• It is done throughout the audit so significant matters are promptly resolved before the date of the auditor’s report.

• Documentation of the review may be completed after the  auditor’s report (as part of the assembly of the final audit file)

• The extent of the review depends on:

  1) The complexity of the audit
  2) If the entity is listed and
  3) The risk of an inappropriate auditor’s report