.02 The objective of the auditor is to supervise the audit engagement, including supervising the work of engagement team members so that the work is performed as directed and supports the conclusions reached.
Responsibility of the Engagement Partner for Supervision
.03 The engagement partner1 is responsible for the engagement and its performance. Accordingly, the engagement partner is responsible for proper supervision of the work of engagement team members and for compliance with PCAOB standards, including standards regarding using the work of specialists,2 other auditors, 3 internal auditors,4 and others who are involved in testing controls.5 Paragraphs .05-.06 of this standard describe the nature and extent of supervisory activities necessary for proper supervision of engagement team members.6
.04 The engagement partner may seek assistance from appropriate engagement team members in fulfilling his or her responsibilities pursuant to this standard. Engagement team members who assist the engagement partner with supervision of the work of other engagement team members also should comply with the requirements in this standard with respect to the supervisory responsibilities assigned to them.
Supervision of Engagement Team Members
.05 The engagement partner and, as applicable, other engagement team members performing supervisory activities, should:
a. Inform engagement team members of their responsibilities,7 including:
1. The objectives of the procedures that they are to perform;
2. The nature, timing, and extent of procedures they are to perform; and
3. Matters that could affect the procedures to be performed or the evaluation of the results of those procedures, including relevant aspects of the company, its environment, and its internal control over financial reporting,8 and possible accounting and auditing issues;
b. Direct engagement team members to bring significant accounting and auditing issues arising during the audit to the attention of the engagement partner or other engagement team members performing supervisory activities so they can evaluate those issues and determine that appropriate actions are taken in accordance with PCAOB standards;9