Understanding the level of engagement partner involvement in audit engagements is crucial for evaluating audit quality and team dynamics. Let’s delve into the description, interpretation, and considerations regarding Workload: Engagement Partner Role.
Indicator: Workload: Engagement Partner Role (%) represents the engagement partner’s (excluding EQ review partner) hours charged to the audit client as a percentage of the total audit hours for completed engagements.
Purpose: This metric measures the extent of engagement partner involvement.
How to Interpret the AQI:
Higher Ratios: Indicate greater engagement partner involvement, potentially leading to higher-quality audit files or audits with more areas of significant judgment. However, high ratios may also suggest understaffing, inexperienced teams, or execution issues.
Comparison with Other Ratios: This ratio can be compared with the workload to manager supervision (%) ratio and the EQ review partner hours (%) ratio to provide a comprehensive assessment of team dynamics and audit quality.
IRBA Code Considerations:
Professional Competence and Due Care: Engagement partners are obligated to maintain professional knowledge and skill at the required level and act diligently in accordance with applicable standards.
Client and Engagement Acceptance: Safeguards such as assigning sufficient personnel with necessary competencies and agreeing on realistic timeframes address self-interest threats associated with engagement complexity and resource allocation.
Analysing Workload: Engagement Partner Role (%) offers insights into engagement partner involvement and its impact on audit quality and team dynamics.
As audit professionals, it’s crucial to ensure appropriate resource allocation, maintain professional competence, and uphold the highest standards of diligence and professionalism.
ISA 220(Revised) – Quality Management for an Audit of Financial Statements clarified and added Engagement Partner responsibilities. I believe will see an increase on the ratio in upcoming years.
Our audit templates have been updated to accommodate for the added responsibility and we have done this in efficient and automated documents and reports. It is imperative that engagement partners ensure engagement files created are on the latest versions:
