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Section PS 6420, Knowledge of the Audit Entity in Planning Value-for-money Audits in the Public Sector

Ef­fec­tive date:

Not specified


CSAE 3001, Direct Engagements, requires the auditor to be satisfied that those persons who are to perform the engagement collectively have the appropriate competence and capabilities. Section PS 6410, Planning Value-for-money Audits in the Public Sector, provides guidance to help the auditor interpret and apply the planning standard. One of the key elements of audit planning identified in Section PS 6410 is knowledge of the audit entity.

This Section provides further guidance on obtaining the knowledge of the audit entity and its environment necessary to plan a value-for-money audit, but is not intended to serve as a checklist or program for obtaining knowledge of the audit entity. Further, it does not identify specific sources of information or techniques for gathering information.

This Section describes the major features of the audit entity and its environment, and their inter relationships, that the auditor needs to understand to adequately plan a value-for-money audit.

His­tory of Section PS 6420




July 2015

Paragraphs 01 amended to include additional reporting requirements as a result of the issuance of CSAE 3001, Direct Engagements.

The amended requirements are effective for reports dated on or after June 30, 2017.

Amendments under consideration

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.