4080 Examination Approval

Dec-2022

What CSAE 3001 means for examination approval

CSAE 3001 requires that

• the audit team collectively has the appropriate competence and capabilities, including having sufficient time, to perform the audit in accordance with OAG policies and standards for assurance engagements. This evaluation is done during the engagement risk assessment (OAG Audit 4020 Risk assessment);

• 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 engagement, the office’s policies or procedures, and any changes that may arise during the engagement;

• the audit has been planned to ensure that it will be performed in an effective manner, by setting the objective, scope, timing, and direction of the audit, and determining the nature, timing, and extent of planned procedures required to conduct the audit. This is done by preparing the audit logic matrix (OAG Audit 4044 Developing the audit strategy: audit logic matrix) and audit programs (OAG Audit 4070 Audit programs);

• the audit team has considered significance when planning the engagement (OAG Audit 2020 Significance), the significance of the subject under audit, and whether it is free from significant deviation. This is done during the subject matter risk assessment (OAG Audit 4020 Risk assessment);

• as new evidence is obtained during the examination phase, the audit team continues to monitor the risk of significant deviation to ensure that the initial assessment does not change. If there are changes, the assessment will need to be revised and planned procedures could be modified (as appropriate);

• audit team members comply with relevant ethical requirements, including independence with respect to the audit and that monitoring is conducted throughout the audit to ensure that audit team members continue to comply with these requirements (OAG Audit 3031 Independence);

• the audit team has conducted procedures to obtain an understanding of internal controls relevant to the audit (OAG Audit 4025 Internal controls); and

• the audit team has confirmed the terms of the engagement and has sought to obtain a written acknowledgement from the audited entity that it is responsible for the subject matter and that the audit criteria are suitable for the engagement. This is done when the audit plan summary (OAG Audit 4090 Audit plan summary for performance audits) or the special examination plan (OAG Audit 4100 Special examination plan) is sent to the entity.

The examination approval requires sign-offs in the audit working paper software on all these areas related to standards, but also on two other elements that are directly related to OAG policies on consultations and budgets.

• Before starting the examination phase of the audit, the engagement leader should ensure that all the required reviews and consultations have taken place and that the advice received has been documented and addressed (OAG Audit 3081 Consultations).

• The engagement leader should also ensure that detailed budgets to enable the audit to be completed within the set timelines have been prepared and justified (OAG Audit 2010 Project management).

The examination approval sign-off need to be completed in the audit working paper software.

Next steps

After signing-off that the required planning work has been completed, the examination phase can proceed.