Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p21
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 65907–69488

involves use of significant assumptions and methods, the relevance and reasonableness of those assumptions and methods in the circumstances; and

         3.                 If that expert's work involves the use of source data that is significant to that expert's work, the relevance, completeness, and accuracy of that source data.

 3.                If the practitioner determines that the work of the practitioner's expert is not adequate for the practitioner's purposes, the practitioner shall:

         1.                 Agree with that expert on the nature and extent of further work to be performed; or

         2.                 Perform additional procedures appropriate to the circumstances.

Using the Work of the Internal Audit Function

 1.                If the practitioner plans to use the work of the internal audit function, the practitioner shall: (Ref: Para. A152–A154)

         1.                 Evaluate the extent to which the internal audit function's organisational status and relevant policies and procedures support the objectivity of the internal auditors;

         2.                 Evaluate the level of competence of the internal audit function, including in sustainability matters and applicable criteria;

         3.                 Evaluate whether the internal audit function applies a systematic and disciplined approach, including a system of quality control;

         4.                 Determine whether, and to what extent, to use specific work of the internal audit function; and

         5.                 Determine whether that work is adequate for the practitioner's purposes.

Communications Among Those Involved in the Engagement

 1.                The engagement leader shall take responsibility for determining that communications take place at appropriate times throughout the engagement among the engagement team and, as applicable, practitioner's external experts and the internal audit function. (Ref: Para. A155–A159)

Consultation

 1.                The engagement leader shall take responsibility for the engagement team undertaking consultation on:

         1.                 Difficult or contentious matters and matters on which the firm's policies or procedures require consultation; and

         2.                 Other matters that, in the engagement leader's professional judgement, require consultation.

Engagement Quality Review

 1.                For those engagements for which an engagement quality review is required in accordance with ASQM 1 or the firm's policies or procedures, the engagement leader shall discuss significant matters and significant judgements arising during the engagement, including those identified during the engagement quality review, with the engagement quality reviewer.

Monitoring and Remediation

 1.                The engagement leader shall: (Ref: Para. A160–A161)

         1.                 Consider information from the firm's monitoring and remediation process, as communicated by the firm, including, as applicable, information from the monitoring and remediation process of the network and across the network firms; and

         2.                 Determine whether the information may affect the engagement and, if so, take appropriate action.

Fraud and Non-Compliance with Laws and Regulations

 1.                The practitioner shall maintain professional scepticism throughout the engagement, recognising the possibility that a material misstatement due to fraud could exist, notwithstanding the practitioner's past experience of the honesty and