AU-C Section 220.16: Assignment of Engagement Teams

AU-C Section 220.16 says:

".16 The engagement partner should be satisfied that the engagement team and any auditor's external specialists, collectively, have the appropriate competence and capabilities to

• perform the audit engagement in accordance with professional standards and applicable legal and regulatory requirements and
• enable an auditor's report that is appropriate in the circumstances to be issued. (Ref: par. .A9–.A11)"

The engagement partner has a responsibility to ensure that the engagement team members are competent and experienced enough to perform the audit engagement and issue an appropriate audit report.

In order to determine whether he has selected the appropriate engagement team, the engagement partner should make sure the engagement team has

•  understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.
•  understanding of professional standards and applicable legal and regulatory requirements.
•  technical expertise, including expertise with relevant IT and specialized areas of accounting or auditing.
• knowledge of relevant industries in which the entity operates.
• ability to apply professional judgment.
• understanding of the firm's quality control policies and procedures.