9061 Completion sign-offs

Dec-2023

OAG Guidance

The engagement leader, team manager and engagement quality reviewer (where applicable) document completion sign‑off at the conclusion of the audit to evidence that audit objectives have been achieved (see further guidance in OAG Audit 1021), conclusions are consistent with the work done, the engagement has been appropriately executed in accordance with the CASs, including responsibility for the direction, supervision and review of the audit engagement, overall quality has been achieved and the audit report is appropriate and can be issued.

OAG Guidance

The date of the completion sign‑off is no later than the date of the audit report.

On or before the date of the auditor’s report, the engagement leader determines that sufficient appropriate audit evidence has been obtained through discussions with the team manager and engagement team and review of audit documentation. This includes determining that all audit work has been appropriately reviewed, coaching notes (other than those that are administrative in nature) are resolved and the documentation in the audit file is sufficient to support the final conclusions. When we obtained, discussed and agreed audit evidence before the date of the audit report but, for administrative reasons, some of the audit evidence is documented after the audit report date, the engagement leader needs to confirm that they are satisfied the subsequent documentation has been properly completed. Engagement teams are encouraged, where possible, to complete the documentation of all audit evidence in support of the audit report no later than the date of the audit report. If, on the date of the audit report, we have obtained but not documented all the evidence, the relevant completion procedure(s) “Engagement leader and team manager—Completion sign‑off” and “CA—Engagement leader and team manager—Completion sign‑off—Group reporting” (where applicable) is (are) signed off subject to completion of the documentation. Then, once the documentation is finalised, the engagement leader subsequently confirms that he/she is satisfied that the documentation has been properly completed by revisiting the completion procedures.

In addition, engagement teams comply with the guidance in OAG Audit 1172 when documenting audit evidence after the report date as well as OAG Audit 9043 when a fact becomes known to the auditor after the date of the auditor’s report but before the date the financial statements are issued.

Related Guidance:

See OAG Audit 1181 for guidance on multiple reporting situations.

OAG Guidance

The Team Manager confirms to the Engagement Leader that completion of the audit work, including detailed file review and documentation of Significant Matters using the ISSUE functionality in the audit working paper software, is complete and accurate by signing the procedure “Engagement leader and team manager—Completion sign‑off” as Prepared. The team manager’s sign‑off of completion includes addressing the applicable affirmations within the sign‑off procedures. The team manager is also proactive in achieving timely sign‑off by the engagement leader and engagement quality reviewer.

Where documentation is added after the report date, the team manager marks the procedure “Engagement leader and team manager—Completion sign‑off” as Prepared for a second time. See OAG Audit 1171 for guidance on documenting audit evidence after the report date.

OAG Guidance

The engagement leader’s sign‑off of completion requires the engagement leader to address the affirmations within the completion sign‑off procedure. The engagement leader must sign‑off the procedure “Engagement leader and team manager—Completion sign‑off” as Reviewed. Even though the engagement leader may not be required to review every existing procedure related to these affirmations in the audit file, it may be prudent to do so to further evidence their involvement in the audit documentation. The engagement leader uses their judgment on whether to mark those procedures, or any other procedures as reviewed.

Where documentation is added after the report date, the engagement leader marks the procedure “Engagement leader and team manager—Completion sign‑off” as Reviewed for a second time. See OAG Audit 1171 for guidance on documenting audit evidence after the report date.

OAG Guidance

Signing the Engagement Quality Reviewer Checklist and Sign‑off (CSQM 2) provides evidence that the engagement quality reviewer has considered, through review of the relevant audit documentation and appropriate discussion with the engagement leader and team manager, the matters required by CSQM 2 (see OAG Audit 3063).

The engagement quality reviewer may, but does not need to, electronically sign off each individual procedure(s) he/she has reviewed, but if not, documents the nature and extent of his/her review in the relevant quality reviewer’s checklist and the sign‑off procedure(s).

OAG Guidance

Signing the Completion sign‑off procedure “Clearance by the Auditor’s Report Signatory” evidences the Signatory’s final clearance of the auditor’s report for issuance.

OAG Guidance

Where two or more different reports are issued in respect of the same historical financial information, including disclosures of an entity, it is necessary to demonstrate that sufficient appropriate audit evidence has been obtained to support each of the audit reports.

Thus, in situations where group reporting is completed and then later in the year the audit of statutory financial statements is completed, completion sign‑off is evidenced for each report as if it were for a separate engagement.

Group reporting sign‑off is evidenced by completing and reviewing the procedure “CA—Engagement leader and team manager—Completion sign‑off—Group reporting.” The date of this sign‑off is no later than the date of the Memorandum of Work Performed and Report Clearance Summary.

At the time of the group completion sign‑off, the engagement leader is satisfied with the work performed, evidence obtained, and documentation recorded regarding the group reporting. Therefore, all the matters in the general sign‑off guidance are considered if they are applicable to the group reporting, e.g. all related significant matters in the engagement file are marked as Reviewed.

Statutory reporting completion sign‑off is performed no later than the statutory audit report date, in line with the general completion sign‑off guidance above.

Related Guidance:

See OAG Audit 1181 for detailed guidance on archiving procedures when interoffice and statutory reports are issued.

OAG Guidance

Before signing the auditor’s report, 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. By signing off the engagement leader completion sign‑off procedure, the engagement leader affirms that they have been sufficiently involved to fulfill this requirement.

The engagement leader’s sufficient and appropriate involvement is evidenced by:

• Documentation of their involvement in planning, specifically the team planning meeting. The team planning meeting provides one important element demonstrating that direction and supervision of the engagement team and review of their work has been appropriately planned, as required by CAS 220.30(a).
• Documentation of their participation at "taking stock" meetings. "Taking stock" meetings can be used to evidence the engagement leader’s ongoing direction and supervision of the engagement team and the review of their work (i.e., that direction, supervision and review was performed as planned, as required by CAS 220.30(a)). In addition, changes in the engagement circumstances that may require a change to the planned direction and supervision of the engagement team and the review of their work will typically be discussed at "taking stock" meetings. Documentation of these discussions evidencing engagement leader involvement provide evidence of the engagement leader’s ongoing involvement.
• Their review of working papers. Sign‑off of the planning and completion sign‑off procedures require the engagement leader to address the affirmations within the planning and completion sign‑off procedures.

At the completion stage, consider whether the engagement leader is satisfied that their involvement has been sufficient and appropriate throughout the audit engagement and is appropriately reflected in the audit documentation, such that the 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 audit engagement. Once the engagement is satisfied that these expectations are fulfilled, it will be appropriate to mark the completion sign‑off procedure as reviewed. In some cases, the engagement leader may determine that additional audit procedures or documentation may be necessary, or further consultation is needed. In this case the engagement leader marks the completion sign‑off procedure as reviewed only after they are satisfied that the additional work and related documentation has been completed.

Related Guidance

• Team Planning Meeting—OAG Audit 4011
• Taking Stock Meetings—OAG Audit 7022
• Review of Audit Work and Documentation—OAG Audit 3071

OAG Guidance

Consultations with other accountants

When management has consulted other accountants about significant accounting and auditing matters, if the other accountant’s opinion differs from our views, the engagement team may consult, as appropriate, with Audit Services before communicating with management or those charged with governance. See OAG Audit 3081 for further guidance.

OAG Guidance

Confirm that the following instances, applicable to the completion stage of an audit, have been considered and satisfactorily dealt with: