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3061 Engagement Team: Assigning and Managing Tasks
Dec-2023
Overview
This section discusses the importance of being satisfied that the engagement team has the appropriate competence and capabilities, including sufficient time to conduct the engagement, as well as the assignment of roles and responsibilities.
OAG Policy
The engagement leader shall
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assess and be satisfied 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 any changes that may arise during the engagement;
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assess and be satisfied that members of the engagement team, and any auditor’s external experts and internal auditors who provide direct assistance who are not part of the engagement team, collectively have the appropriate competence and capabilities, including sufficient time, to perform the audit engagement; and
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be satisfied with the assigned roles and responsibilities. [Dec-2022]
If the engagement leader determines that resources assigned or made available are insufficient or inappropriate in the circumstances of the audit engagement, the engagement leader shall take appropriate action, including communicating with appropriate individuals about the need to assign or make available additional or alternative resources to the engagement. [Dec-2022]
OAG Guidance
The engagement leader is responsible for the overall quality of the engagement and, is accountable for compliance with Office policies, professional standards and for the appropriateness of the assurance report that is issued. The engagement leader is responsible to 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 assurance engagement. The engagement leader is also responsible to determine that members of the engagement team, and any auditor’s external experts and internal auditors who provide direct assistance who are not part of the engagement team, collectively have the appropriate competence and capabilities, including sufficient time, to perform the audit engagement.
This means the engagement leader
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models, through their personal conduct and actions, behaviors that emphasize a commitment to audit quality;
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properly assesses the assignment and structure of the engagement team, and any auditor's external experts and internal auditors who provide direct assistance who are not part of the engagement team;
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is satisfied that the planned resources have been allocated to the team and there is sufficient time to perform the work expected of them;
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is satisfied that engagement team roles and responsibilities are properly assigned and communicated, including responsibilities for maintaining an objective state of mind and an appropriate level of professional skepticism, and for performing work in accordance with relevant ethical requirements;
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in assigning roles and responsibilities, matches the level of knowledge and experience to the risk and complexity of the tasks;
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encourages a culture of knowledge sharing and communication, so that engagement team members draw on the totality of their understanding of the entity and their personal knowledge and experience;
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clearly defines the tasks to be performed, including the review responsibilities and reporting lines to the engagement leader; and
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is proactively involved, together with the team manager, in assessing team capabilities and performance throughout the audit, and takes appropriate action where they become aware that additional resources or expertise is needed.
The composition of the engagement team and the proper assignment of roles and responsibilities are essential to the performance of an effective audit. Every audit is different, and the engagement team is structured to meet those specific circumstances.
The engagement leader is satisfied that assigned roles and responsibilities, supported by an integrated coaching culture, provide for the development of each team member. The development of team members is achieved by
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providing team members with a range of challenging opportunities to build their knowledge, relationships, and experience;
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engaging team members in setting expectations and measurable goals aligned to the audit, Office, and personal success;
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leading by example and sharing knowledge and experience; and
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providing for high-quality on-the-job coaching.
This means that auditors
- develop their technical competence, team-working skills, knowledge-sharing abilities, and professionalism;
- perform high-quality engagements; and
- manage risk appropriately.
If the engagement leader determines that resources assigned or made available are insufficient or inappropriate in the circumstances of the engagement and additional or alternative resources have not been made available, appropriate actions may include:
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communicating with appropriate individuals about the need to assign or make available additional or alternative resources to the engagement,
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changing the planned approach to the nature, timing and extent of direction, supervision and review;
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discussing an extension to reporting deadlines with management or those charged with governance, when an extension is possible under applicable law or regulation; or
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following the Office's policies or procedures for withdrawing from the assurance engagement, when withdrawal is possible under applicable law or regulation.