The term Engagement Partner is defined in ASA 220 and ASQM 1^[47] as “the partner or other individual, appointed by the firm, who is responsible for the audit engagement and its performance, and for the auditor’s report [emphasis added] that is issued on behalf of the firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body.” In accordance with these Standards^[48] , ‘engagement partner’, ‘partner’ and ‘firm’ is to be read as referring to their public sector equivalents where relevant.

In the public sector, an Auditor-General, or other suitably qualified individual appointed on behalf of the Auditor-General,^[49] may act in a role equivalent to that of the Engagement Partner with overall responsibility for a public sector audit.^[50]

Challenges may arise in relation to some aspects of ASA 220 in the public sector when the individual assigned responsibility for the audit engagement and its performance in practice, is not also the individual responsible for signing and issuing the auditor’s report. ASA 220 does not specify that the Engagement Partner has to sign the auditor’s report; nor does ASA 700^[51] require this. Furthermore, ASA 700 does not include specific requirements as to the role and responsibilities of the individual responsible for signing and issuing the auditor’s report.

This section of the GS provides supplementary guidance on:

1. the concept of Engagement Partner in the public sector (ASA 220, paragraph 12(a)); and
2. the allocation of responsibilities under ASA 220 when the individual who is assigned responsibility for the audit engagement and its performance in practice, is not also the individual responsible for signing and issuing the auditor’s report.

Different scenarios may apply in the different jurisdictions in Australia depending on the applicable legislative mandate and chosen audit delivery model (for example, whether external Audit Service Providers form part of the engagement team or not). Each Audit Office will work within any delegation or authorisation clauses provided within their legislation to establish policies or procedures to ensure the objectives of ASA 220 are achieved.

Depending on the legislative mandate in each jurisdiction, an Auditor-General may not be required to perform the audit of a public sector entity. Instead, the public sector entity may engage a private sector auditor or firm to perform the audit. In these circumstances, the engaged auditor or firm has overall responsibility for the audit engagement and its performance, and will sign and issue the auditor’s report. These types of engagements fall outside the scope of this section, as ASA 220 is fit for purpose in these circumstances.