Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p48
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 141821–145025

indicate a deficiency in the firm's system of quality management.

      * Engagement teams communicate information to the engagement quality reviewer or individuals providing consultation.

      * The group auditor communicates matters to component auditors in accordance with the firm's policies or procedures, including matters related to quality management at the engagement level.

      * The individual(s) assigned operational responsibility for compliance with independence requirements communicates to relevant personnel and engagement teams changes in the independence requirements and the firm's policies or procedures to address such changes.

Communication with External Parties

Communication to or within the Firm's Network and to Service Providers (Ref: Para. 33(d)(i))

A113.      In addition to the firm communicating information to or within the firm's network or to a service provider, the firm may need to obtain information from the network, a network firm or a service provider that supports the firm in the design, implementation and operation of its system of quality management.
Example of information obtained by the firm from within the firm's network

The firm obtains information from the network or other network firms about clients of other network firms, where there are independence requirements that affect the firm.

Communication with Others External to the Firm (Ref: Para. 33(d)(ii))
A114.      Examples of when law, regulation or AUASB standards may require the firm to communicate information to external parties

           * The firm becomes aware of non-compliance with laws and regulations by a client, and relevant ethical requirements require the firm to report the non-compliance with laws and regulations to an appropriate authority outside the client entity, or to consider whether such reporting is an appropriate action in the circumstances.

           * Law or regulation requires the firm to publish a transparency report and specifies the nature of the information that is required to be included in the transparency report.

           * Securities law or regulation requires the firm to communicate certain matters to those charged with governance.

A115.      In some cases, law or regulation may preclude the firm from communicating information related to its system of quality management externally.
Examples of when the firm may be precluded from communicating information externally

      * Privacy or secrecy law or regulation prohibits disclosure of certain information.

      * Law, regulation or relevant ethical requirements include provisions addressing the duty of confidentiality.

Specified Responses (Ref: Para. 34)

A116.      The specified responses may address multiple quality risks related to more than one quality objective across different components. For example, policies or procedures for complaints and allegations may address quality risks related to quality objectives in resources (e.g., personnel's commitment to quality), relevant ethical requirements and governance and leadership. The specified responses alone are not sufficient to achieve the objectives of the system of quality management.

Relevant