Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p14
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 39541–42620

or Network Services" section).[13] The requirements of this ASA are based on the premise that the firm is responsible for taking the necessary action to enable engagement teams to implement or use network requirements or network services on the audit engagement (for example, a requirement to use an audit methodology developed for use by a network firm). Under ASQM 1, the firm is responsible for determining how network requirements or network services are relevant to, and are taken into account in, the firm's system of quality management.[14]

A6.             Some firm-level responses to quality risks are not performed at the engagement level but are nevertheless relevant when complying with the requirements of this ASA. For example, firm-level responses that the engagement team may be able to depend on when complying with the requirements of this ASA include:

           * Personnel recruitment and professional training processes;

           * The information technology (IT) applications that support the firm's monitoring of independence;

           * The development of IT applications that support the acceptance and continuance of client relationships and audit engagements; and

           * The development of audit methodologies and related implementation tools and guidance.

A7.             Due to the specific nature and circumstances of each audit engagement and changes that may occur during the audit engagement, a firm cannot identify all quality risks that may arise at the engagement level or set forth all relevant and appropriate responses. Accordingly, the engagement team exercises professional judgement in determining whether to design and implement responses, beyond those set forth in the firm's policies or procedures, at the engagement level to meet the objective of this ASA.[15]

A8.             The engagement team's determination of whether engagement level responses are necessary (and, if so, what those responses are) is influenced by the requirements of this ASA, the engagement team's understanding of the nature and circumstances of the engagement and any changes during the audit engagement. For example, unanticipated circumstances may arise during the engagement that may cause the engagement partner to request the involvement of appropriately experienced personnel in addition to those initially assigned or made available.

A9.             The relative balance of the engagement team's efforts to comply with the requirements of this ASA (i.e., between implementing the firm's responses and designing and implementing engagement specific responses beyond those set forth in the firm's policies or procedures) may vary. For example, the firm may design an audit program to be used in circumstances that are applicable to the audit engagement (e.g., an industry-specific audit program). Other than determining the timing and extent of procedures to be performed, there may be little or no need for supplemental audit procedures to be added to the audit program at the engagement level. Alternatively, the engagement team's