Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p42
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 124885–127966

(Ref: Para. 32(b))

A91.         Timely evaluations and feedback help support and promote the continual development of the competence of personnel. Less formal methods of evaluation and feedback may be used, such as in the case of firms with fewer personnel.

A92.         Positive actions or behaviours demonstrated by personnel may be recognised through various means, such as through compensation, promotion, or other incentives. In some circumstances, simple or informal incentives that are not based on monetary rewards may be appropriate.

A93.         The manner in which the firm holds personnel accountable for actions or behaviours that negatively affect quality, such as failing to demonstrate a commitment to quality, develop and maintain the competence to perform their role or implement the firm's responses as designed, may depend on the nature of the action or behaviour, including its severity and frequency of occurrence. Actions the firm may take when personnel demonstrate actions or behaviours that negatively affect quality may include:

           * Training or other professional development.

           * Considering the effect of the matter on the evaluation, compensation, promotion or other incentives of those involved.

           * Disciplinary action, if appropriate.

Individuals Obtained from External Sources (Ref: Para. 32(c))

A94.         AUASB standards may include responsibilities for the engagement partner regarding the appropriateness of resources. For example, ASA 220[15] addresses the responsibility of the engagement partner for determining that sufficient and appropriate resources to perform the engagement are assigned or made available to the engagement team in a timely manner in accordance with the firm's policies or procedures.

Engagement Team Members Assigned to Each Engagement (Ref: Para. 32(d))

A95.         Engagement team members may be assigned to engagements by:

           * The firm, including assigning personnel from a service delivery centre in the firm.

           * The firm's network or another network firm when the firm uses individuals from the firm's network or another network firm to perform procedures on the engagement (e.g., a component auditor or a service delivery centre of the network or another network firm).

           * A service provider when the firm uses individuals from a service provider to perform procedures on the engagement (e.g., a component auditor from a firm that is not within the firm's network).

A96.         [Deleted by the AUASB. Refer Aus A96.1]

Aus A96.1 ASA 220[16] addresses the responsibility of the engagement partner to determine that members of the engagement team, and any auditor's external experts who are not part of the engagement team, collectively have the appropriate competence and capabilities, including sufficient time, to perform the engagement. ASA 600[17] expands on how ASA 220 is to be applied in relation to an audit of a group financial report. The responses designed and implemented by the firm to address the competence and capabilities