Engagement team definition: new fact sheet

01 June 2022
Auditing and Assurance
South African Accounting Academy

To help users adapt to the clarified and updated definition of “engagement team”, this fact sheet addresses the clarified definition and its possible impacts, including recognition that engagement teams may be organized in a variety of ways, including across different locations or by the activity they are performing.

The fact sheet also includes a diagram that walks users through who specifically is included and excluded.

An important change made to the definition was to clarify the previous reference to the inclusion of ‘any individuals engaged by the firm or a network firm who perform audit procedures on the engagement’ to ‘any other individuals who perform audit procedures on the engagement”. A similar definition is used in ISQM 1, paragraph 16(f) for other types of engagements.

Click here to download the Fact sheet:

https://www.ifac.org/system/files/publications/files/IAASB-ISA-220-Fact-Sheet-Engagement-Team.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

As an auditor and independent reviewer, you need to comply with International Standards on Auditing and other Assurance Services, and thus you need knowledge of newly revised standards that are approved as well as when they become effective.
You should also consider any publications issued by professional bodies to provide clarity on important concepts.
Failure to adhere to ISAs may be interpreted as negligence and you could be held liable.

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