Annual Audit Manual

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4014 Other discussions at the team planning meetings
Dec-2023

In This Section

Discussion topics related to the direction of the audit

Discussion topics related to the direction of the audit

CAS Guidance

That the engagement partner has taken responsibility for the direction and supervision of the engagement team and the review of their work may be evidenced in a number of ways within the audit documentation. This may include documentation that evidences the engagement partner’s sufficient and appropriate involvement in the audit, such as participation in engagement team discussions (CAS 230.A7).

OAG Guidance

The engagement leader may use the team planning meetings to give direction to the engagement team. As a consequence, discussions at the team planning meetings may relate to:

  • Responsibilities of the engagement team, including the need to comply with independence and ethical requirements

  • Responsibility of the engagement team to plan and perform the audit with professional skepticism

  • Objectives of the work to be performed

  • Agreement on times to discuss and on personal development objectives for all team members

  • Results of client satisfaction survey

  • Nature of the entity’s business

  • Risk-related issues

  • The detailed approach to the performance of the audit

  • Problems that may arise

Discussion of risk-related issues may include:

  • Results of risk assessment analytics

  • Changes in the internal control framework and whether we plan to obtain evidence over the operating effectiveness of internal controls

  • Plans for or results of meetings

  • Plans for or results of initial meeting(s) with management

  • Significant risks identified

  • Impact on materiality

  • Climate-related risks (OAG Audit 5026)

  • Use of the going concern basis of accounting (OAG Audit 7520)

  • Local laws and regulations (OAG Audit 7510)

We form our own point of view of risks facing the client and the existing management controls to address these risks (we need to be able to challenge management’s assessment of the effectiveness of their measures in identifying and mitigating risks).

Discussion of the detailed approach to the performance of the audit may include:

  • Scope of engagement, e.g., industry-specific reporting requirements and locations of the components of the entity

  • Discussion of which procedure cabinets to be used in the audit working paper software

  • Matters arising from the prior year debrief

  • Involvement of experts in the audit (OAG Audit 3101)

  • Materiality

  • Audit Planning Template, which sets out the nature, timing and extent of audit procedures to be performed by the team and demonstrates how the risks of material misstatement at the financial statement and assertion levels will be addressed. Although this template is an output of the team planning meetings, it is recommended that it be used as a basis for discussion at the team planning meetings, where practicable.

  • Incorporation of unpredictable procedures into the audit plan

  • Encourage all team members to bring matters involving differences of opinion arising during the audit to the attention of the engagement leader as necessary

  • Resource plan

    1. Plan the resources to allocate to specific audit areas
    2. Agree roles and responsibilities (e.g., multiple principals on the team, project manager, knowledge broker, etc.)

  • Project plan

    1. Agree team deliverables for all stages in the process (including deliverables of experts)
    2. Planned date for taking stock meetings and milestones in the audit process
    3. Agree audit budget target recovery rate

  • Nature, timing and extent of the planned direction and supervision of engagement team members and review of their work. (CAS 300.9(a))

    1. Identify higher risk areas that may require multiple levels of review
    2. Define how engagement leader and manager reviews are expected to take place and
    3. Plan the involvement of the engagement quality reviewer, where applicable

  • Timely audit documentation

  • Audit quality

  • Reporting to management and expected deliverables

  • Other administrative matters