Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p67
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 196036–199109

network requirements (e.g., monitoring that the firm has implemented the network's methodology appropriately), or to the firm's system of quality management in general.

Examples of network services

      * Services or resources that are optional for the firm to use in its system of quality management or in the performance of engagements, such as voluntary training programs, use of component auditors or experts from within the network, or use of a service delivery centre established at the network level, or by another network firm or group of network firms.

A176.      The network may establish responsibilities for the firm in implementing the network requirements or network services.
Examples of responsibilities for the firm in implementing network requirements or network services

      * The firm is required to have certain IT infrastructure and IT processes in place to support an IT application provided by the network that the firm uses in the system of quality management.

      * The firm is required to provide firm-wide training on the methodology provided by the network, including when updates are made to the methodology.

A177.      The firm's understanding of the network requirements or network services and the firm's responsibilities relating to the implementation thereof may be obtained through enquiries of, or documentation provided by, the network about matters such as:

           * The network's governance and leadership.

           * The procedures undertaken by the network in designing, implementing and, if applicable, operating, the network requirements or network services.

           * How the network identifies and responds to changes that affect the network requirements or network services or other information, such as changes in the AUASB standards or information that indicates a deficiency in the network requirements or network services.

    How the network monitors the appropriateness of the network requirements or network services, which may include through the network firms' monitoring activities, and the network's processes for remediating identified deficiencies.

Network Requirements or Network Services in the Firm's System of Quality Management (Ref: Para. 49)

A178.      The characteristics of the network requirements or network services are a condition, event, circumstance, action or inaction in identifying and assessing quality risks.
Example of a network requirement or network service that gives rise to a quality risk

The network may require the firm to use an IT application for the acceptance and continuance of client relationships and specific engagements that is standardized across the network. This may give rise to a quality risk that the IT application does not address matters in law or regulation that need to be considered by the firm in accepting and continuing client relationships and specific engagements.

A179.      The purpose of the network requirements may include the promotion of consistent performance of quality engagements across the network firms. The firm