The engagement partner shall take overall responsibility for managing and achieving quality on the audit engagement, including taking responsibility for creating an environment for the engagement that emphasises the firm’s culture and expected behaviour of engagement team members. In doing so, the engagement partner shall be sufficiently and appropriately involved throughout the audit engagement such that the engagement partner has the basis for determining whether the significant judgements made, and the conclusions reached, are appropriate given the nature and circumstances of the engagement. (Ref: Para. A28–A37)

In creating the environment described in paragraph 13, the engagement partner shall take responsibility for clear, consistent and effective actions being taken that reflect the firm’s commitment to quality and establish and communicate the expected behaviour of engagement team members, including emphasising: (Ref: Para. A30–A34)

1. That all engagement team members are responsible for contributing to the management and achievement of quality at the engagement level;
2. The importance of professional ethics, values and attitudes to the members of the engagement team;
3. The importance of open and robust communication within the engagement team, and supporting the ability of engagement team members to raise concerns without fear of reprisal; and
4. The importance of each engagement team member exercising professional scepticism throughout the audit engagement.

If the engagement partner assigns the design or performance of procedures, tasks or actions related to a requirement of this ASA to other members of the engagement team to assist the engagement partner in complying with the requirements of this ASA, the engagement partner shall continue to take overall responsibility for managing and achieving quality on the audit engagement through direction and supervision of those members of the engagement team, and review of their work. (Ref: Para. 9, A37)

The engagement partner shall have an understanding of the relevant ethical requirements, including those related to independence, that are applicable given the nature and circumstances of the audit engagement. (Ref: Para. A38–A42, A48)

The engagement partner shall take responsibility for other members of the engagement team having been made aware of relevant ethical requirements that are applicable given the nature and circumstances of the audit engagement, and the firm’s related policies or procedures, including those that address: (Ref: Para. A23–A25, A40–A44)

1. Identifying, evaluating and addressing threats to compliance with relevant ethical requirements, including those related to independence;
2. Circumstances that may cause a breach of relevant ethical requirements, including those related to independence, and the responsibilities of members of the engagement team when they become aware of breaches; and
3. The responsibilities of members of the engagement team when they become aware of an instance of non-compliance with laws and regulations by the entity.^[6]

If matters come to the engagement partner’s attention that indicate that a threat to compliance with relevant ethical requirements exists, the engagement partner shall evaluate the threat through complying with the firm’s policies or procedures, using relevant information from the firm, the engagement team or other sources, and take appropriate action. (Ref: Para. A43–A44)

The engagement partner shall remain alert throughout the audit engagement, through observation and making enquiries as necessary, for breaches of relevant ethical requirements or the firm’s related policies or procedures by members of the engagement team. (Ref: Para. A45)

If matters come to the engagement partner’s attention through the firm’s system of quality management, or from other sources, that indicate that relevant ethical requirements applicable to the nature and circumstances of the audit engagement have not been fulfilled, the engagement partner, in consultation with others in the firm, shall take appropriate action. (Ref: Para. A46)

Prior to dating the auditor’s report, the engagement partner shall take responsibility for determining whether relevant ethical requirements, including those related to independence, have been fulfilled. (Ref: Para. A38 and A47)

The engagement partner shall determine that the firm’s policies or procedures for the acceptance and continuance of client relationships and audit engagements have been followed, and that conclusions reached in this regard are appropriate. (Ref: Para. A49–A52, A58)

The engagement partner shall take into account information obtained in the acceptance and continuance process in planning and performing the audit engagement in accordance with the ASAs and complying with the requirements of this ASA. (Ref: Para. A53–A56)

If the engagement team becomes aware of information that may have caused the firm to decline the audit engagement had that information been known by the firm prior to accepting or continuing the client relationship or specific engagement, the engagement partner shall communicate that information promptly to the firm, so that the firm and the engagement partner can take the necessary action. (Ref: Para. A57)

The engagement partner shall determine that sufficient and appropriate resources to perform the engagement are assigned or made available to the engagement team in a timely manner, taking into account the nature and circumstances of the audit engagement, the firm’s policies or procedures, and any changes that may arise during the engagement. (Ref: Para. A59–A70, A73–A74, A79)

[Deleted by the AUASB. Refer Aus 26.1]

The engagement partner shall determine that members of the engagement team, and any auditor’s external experts who are not part of the engagement team, collectively have the appropriate competence and capabilities, including sufficient time, to perform the audit engagement. (Ref: Para. A62, A71–A74)

If, as a result of complying with the requirements in paragraphs 25 and 26, the engagement partner determines that resources assigned or made available are insufficient or inappropriate in the circumstances of the audit engagement, the engagement partner shall take appropriate action, including communicating with appropriate individuals about the need to assign or make available additional or alternative resources to the engagement. (Ref: Para. A75‒A78)

The engagement partner shall take responsibility for using the resources assigned or made available to the engagement team appropriately, given the nature and circumstances of the audit engagement. (Ref: Para. A63–A69)

Direction, Supervision and Review

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)

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.

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.

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)

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 matters9 and related audit documentation, to determine that the report to be issued will be appropriate in the circumstances.^[10]

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

The engagement partner shall: (Ref: Para. A99–A102)

1. Take responsibility for the engagement team undertaking consultation on:
   1. (i) Difficult or contentious matters and matters on which the firm’s policies or procedures require consultation; and
   2. (ii) 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;
3. Determine that the nature and scope of, and conclusions resulting from, such consultations are agreed with the party consulted; and
4. Determine that conclusions agreed have been implemented.

Engagement Quality Review

For audit engagements for which an engagement quality review is required, the engagement partner shall: (Ref: Para. A103)

1. Determine that an engagement quality reviewer has been appointed;
2. Cooperate with the engagement quality reviewer and inform other members of the engagement team of their responsibility to do so;
3. Discuss significant matters and significant judgements arising during the audit engagement, including those identified during the engagement quality review, with the engagement quality reviewer; and
4. Not date the auditor’s report until the completion of the engagement quality review. (Ref: Para. A104–A106)

Differences of Opinion

If differences of opinion arise within the engagement team, or between the engagement team and the engagement quality reviewer or individuals performing activities within the firm’s system of quality management, including those who provide consultation, the engagement team shall follow the firm’s policies or procedures for dealing with and resolving such differences of opinion. (Ref: Para. A107–A108)

The engagement partner shall:

1. Take responsibility for differences of opinion being addressed and resolved in accordance with the firm’s policies or procedures;
2. Determine that conclusions reached are documented and implemented; and
3. Not date the auditor’s report until any differences of opinion are resolved.

The engagement partner shall take responsibility for: (Ref: Para. A109‒A112)

1. Obtaining an understanding of the information from the firm’s monitoring and remediation process, as communicated by the firm including, as applicable, the information from the monitoring and remediation process of the network and across the network firms;
2. Determining the relevance and effect on the audit engagement of the information referred to in paragraph 39(a) and take appropriate action; and
3. Remaining alert throughout the audit engagement for information that may be relevant to the firm’s monitoring and remediation process and communicate such information to those responsible for the process.

Prior to dating the auditor’s report, the engagement partner shall determine that the engagement partner has taken overall responsibility for managing and achieving quality on the audit engagement. In doing so, the engagement partner shall determine that: (Ref: Para. A113–A116)

1. The engagement partner’s involvement has been sufficient and appropriate throughout the audit engagement such that the engagement partner has the basis for determining that the significant judgements made and the conclusions reached are appropriate given the nature and circumstances of the engagement; and
2. The nature and circumstances of the audit engagement, any changes thereto, and the firm’s related policies or procedures have been taken into account in complying with the requirements of this ASA.

In applying ASA 230,^[11] the auditor shall include in the audit documentation: (Ref: Para. A117– A120)

1. Matters identified, relevant discussions with personnel, and conclusions reached with respect to:
   1. (i) Fulfillment of responsibilities relating to relevant ethical requirements, including those related to independence.
   2. (ii) The acceptance and continuance of the client relationship and audit engagement.
2. The nature and scope of, and conclusions resulting from, consultations undertaken during the audit engagement and how such conclusions were implemented.
3. If the audit engagement is subject to an engagement quality review, that the engagement quality review has been completed on or before the date of the auditor’s report.