Annual Audit Manual

COPYRIGHT NOTICE — This document is intended for internal use. It cannot be distributed to or reproduced by third parties without prior written permission from the Copyright Coordinator for the Office of the Auditor General of Canada. This includes email, fax, mail and hand delivery, or use of any other method of distribution or reproduction. CPA Canada Handbook sections and excerpts are reproduced herein for your non-commercial use with the permission of The Chartered Professional Accountants of Canada (“CPA Canada”). These may not be modified, copied or distributed in any form as this would infringe CPA Canada’s copyright. Reproduced, with permission, from the CPA Canada Handbook, The Chartered Professional Accountants of Canada, Toronto, Canada.

2365 Group Engagement Leader - Taking Overall Responsibility for Quality
Dec-2023

CAS Requirement

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 (CAS 220.40):

a) 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 judgments made and the conclusions reached are appropriate given the nature and circumstances of the engagement; and

b) 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 CAS.

OAG Guidance

As described in OAG Audit 9061, CAS 220 requires the engagement leader to "stand back" and evaluate whether their involvement in the engagement has been sufficient to allow them to take overall responsibility for the quality of the audit engagement.

The group engagement leader applies the guidance in OAG Audit 9061 when considering whether their involvement in the work performed for the overall group audit has been sufficient and appropriate throughout the engagement and is appropriately reflected in the audit documentation, such that the group engagement leader has the basis for determining that the significant judgments made and the conclusions reached are appropriate given the nature and circumstances of the group audit.