Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p21
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 21/31)
Character Range: 68234–71693

Independence education for personnel who are required to be independent.

A26.         The continuing competence of the firm's personnel depends to a significant extent on an appropriate level of continuing professional development so that personnel maintain their knowledge and capabilities.  Effective policies and procedures emphasise the need for continuing training for all levels of firm personnel, and provide the necessary training resources and assistance to enable personnel to develop and maintain the required competence and capabilities.

A27.         The firm may use a suitably qualified external person, for example, when internal technical and training resources are unavailable.

A28.         Performance evaluation, compensation and promotion procedures give due recognition and reward to the development and maintenance of competence and commitment to ethical principles.  Steps a firm may take in developing and maintaining competence and commitment to ethical principles include:

           * Making personnel aware of the firm's expectations regarding performance and ethical principles;

           * Providing personnel with evaluation of, and counselling on, performance, progress and career development; and

           * Helping personnel understand that advancement to positions of greater responsibility depends, among other things, upon performance quality and adherence to ethical principles, and that failure to comply with the firm's policies and procedures may result in disciplinary action.

Considerations Specific to Smaller Firms

A29.         The size and circumstances of the firm will influence the structure of the firm's performance evaluation process.  Smaller firms, in particular, may employ less formal methods of evaluating the performance of their personnel.

Assignment of Engagement Teams

Engagement Partners (Ref: Para. 30)

A30.         Policies and procedures may include systems to monitor the workload and availability of engagement partners so as to enable these individuals to have sufficient time to adequately discharge their responsibilities.

Engagement Teams (Ref: Para. 31)

A31.         The firm's assignment of engagement teams and the determination of the level of supervision required, include for example, consideration of the engagement team's:

           * Understanding of, and practical experience with, engagements of a similar nature and complexity through appropriate training and participation;

           * Understanding of AUASB Standards, relevant ethical requirements, and applicable legal and regulatory requirements;

           * Technical knowledge and expertise, including knowledge of relevant information technology;

           * Knowledge of relevant industries in which the clients operate;

           * Ability to apply professional judgement; and

           * Understanding of the firm's quality control policies and procedures.

Engagement Performance

Consistency in the Quality of Engagement Performance (Ref: Para. 32(a))

A32.         The firm promotes consistency in the quality of engagement performance through its policies and procedures.  This is often accomplished through written or electronic manuals, software tools or other forms of standardised documentation, and industry or subject matter‑specific guidance materials.  Matters addressed may include:

           * How engagement teams are briefed on the engagement to obtain an understanding