Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p45
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 133386–136569

the information the firm uses to enable the operation of the system of quality management and promote consistency in the performance of engagements.
Examples of intellectual resources

Written policies or procedures, a methodology, industry or subject matter-specific guides, accounting guides, standardised documentation or access to information sources (e.g., subscriptions to websites that provide in-depth information about entities or other information that is typically used in the performance of engagements).

A103.      Intellectual resources may be made available through technological resources, for example, the firm's methodology may be embedded in the IT application that facilitates the planning and performance of the engagement.

Use of Technological and Intellectual Resources (Ref: Para. 32(f)–32(g))

A104.      The firm may establish policies or procedures regarding the use of the firm's technological and intellectual resources. Such policies or procedures may:

           * Require the use of certain IT applications or intellectual resources in the performance of engagements, or relating to other aspects of the engagement, such as in archiving the engagement file.

           * Specify the qualifications or experience that individuals need to use the resource, including the need for an expert or training, for example, the firm may specify the qualifications or expertise needed to use an IT application that analyses data, given that specialised skills may be needed to interpret the results.

           * Specify the responsibilities of the engagement partner regarding the use of technological and intellectual resources.

           * Set out how the technological or intellectual resources are to be used, including how individuals should interact with an IT application or how the intellectual resource should be applied, and the availability of support or assistance in using the technological or intellectual resource.

Service Providers (Ref: Para. 16(v), 32(h))

A105.      In some circumstances, the firm may use resources that are provided by a service provider, particularly in circumstances when the firm does not have access to the appropriate resources internally. Notwithstanding that a firm may use resources from a service provider, the firm remains responsible for its system of quality management.
Examples of resources from a service provider

      * Individuals engaged to perform the firm's monitoring activities or engagement quality reviews, or to provide consultation on technical matters.

      * A commercial IT application used to perform audit engagements.

      * Individuals performing procedures on the firm's engagements, for example, component auditors from other firms not within the firm's network or individuals engaged to attend a physical inventory count at a remote location.

      * An auditor's external expert used by the firm to assist the engagement team in obtaining audit evidence.

A106.      In identifying and assessing quality risks, the firm is required to obtain an understanding of the conditions, events, circumstances, actions or inactions that may adversely affect the achievement of