Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p19
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 56404–59664

to the individual(s) assigned ultimate responsibility and accountability for the system of quality management and the individual(s) assigned operational responsibility for the system of quality management: (Ref: Para. A174)

(a)                A description of the monitoring activities performed;

(b)                The identified deficiencies, including the severity and pervasiveness of such deficiencies; and

(c)                The remedial actions to address the identified deficiencies.

47.               The firm shall communicate the matters described in paragraph 46 to engagement teams and other individuals assigned activities within the system of quality management to enable them to take prompt and appropriate action in accordance with their responsibilities.

Network Requirements or Network Services

48.               When the firm belongs to a network, the firm shall understand, when applicable: (Ref: Para. A19, A175)

(a)                The requirements established by the network regarding the firm's system of quality management, including requirements for the firm to implement or use resources or services designed or otherwise provided by or through the network (i.e., network requirements);

(b)                Any services or resources provided by the network that the firm chooses to implement or use in the design, implementation or operation of the firm's system of quality management (i.e., network services); and

(c)                The firm's responsibilities for any actions that are necessary to implement the network requirements or use network services. (Ref: Para. A176)

The firm remains responsible for its system of quality management, including professional judgements made in the design, implementation and operation of the system of quality management. The firm shall not allow compliance with the network requirements or use of network services to contravene the requirements of this ASQM. (Ref: Para. A177)

49.               Based on the understanding obtained in paragraph 48, the firm shall:

(a)                Determine how the network requirements or network services are relevant to, and are taken into account in, the firm's system of quality management, including how they are to be implemented; and (Ref: Para. A178)

(b)                Evaluate whether and, if so, how the network requirements or network services need to be adapted or supplemented by the firm to be appropriate for use in its system of quality management. (Ref: Para. A179–A180)

Monitoring Activities Undertaken by the Network on the Firm's System of Quality Management

50.               In circumstances when the network performs monitoring activities relating to the firm's system of quality management, the firm shall:

(a)                Determine the effect of the monitoring activities performed by the network on the nature, timing and extent of the firm's monitoring activities performed in accordance with paragraphs 36–38;

(b)                Determine the firm's responsibilities in relation to the monitoring activities, including any related actions by the firm; and

(c)                As part of evaluating findings and identifying deficiencies in paragraph 40, obtain the results of the monitoring activities from