Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p50
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 147616–150622

at the time of the firm's decision to accept or continue the client relationship or specific engagement and the firm was not aware of such information; or

           * Relate to new information that has arisen since the decision to accept or continue the client relationship or specific engagement.
Examples of matters addressed in the firm's policies or procedures for circumstances when information becomes known subsequent to accepting or continuing a client relationship or specific engagement that may have affected the firm's decision to accept or continue a client relationship or specific engagement

      * Undertaking consultation within the firm or with legal counsel.

      * Considering whether there is a professional, legal or regulatory requirement for the firm to continue the engagement.

      * Discussing with the appropriate level of the client's management and with those charged with governance or the engaging party the action that the firm might take based on the relevant facts and circumstances.

      * When it is determined that withdrawal is an appropriate action:

              + Informing the client's management and those charged with governance or the engaging party of this decision and the reasons for the withdrawal.

              + Considering whether there is a professional, legal or regulatory requirement for the firm to report the withdrawal from the engagement, or from both the engagement and the client relationship, together with the reasons for the withdrawal, to regulatory authorities.

A123.      In some circumstances, jurisdictional law or regulation may impose an obligation on the firm to accept or continue a client engagement, or in the case of the public sector, the firm may be appointed through statutory provisions.
Example of matters addressed in the firm's policies or procedures in circumstances when the firm is obligated to accept or continue an engagement or the firm is unable to withdraw from an engagement, and the firm is aware of information that would have caused the firm to decline or discontinue the engagement

      * The firm considers the effect of the information on the performance of the engagement.

      * The firm communicates the information to the engagement partner, and requests the engagement partner to increase the extent and frequency of the direction and supervision of the engagement team members and review of their work.

      * The firm assigns more experienced personnel to the engagement.

      * The firm determines that an engagement quality review should be performed.

Communication with External Parties (Ref. Para: 34(e))

A124.      The firm's ability to maintain stakeholder confidence in the quality of its engagements may be enhanced through relevant, reliable and transparent communication by the firm about the activities that it has undertaken to address quality, and the effectiveness of those activities.

A125.      External parties who may use information about the firm's