Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p9
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 9/31)
Character Range: 32152–35399

that create threats to independence so that appropriate action can be taken; and

(c)                The accumulation and communication of relevant information to appropriate personnel so that:

(i)                 The firm and its personnel can readily determine whether they satisfy independence requirements;

(ii)               The firm can maintain and update its records relating to independence; and

(iii)             The firm can take appropriate action regarding identified threats to independence that are not at an acceptable level.

23.               The firm shall establish policies and procedures designed to provide it with reasonable assurance that it is notified of breaches of independence requirements, and to enable it to take appropriate actions to resolve such situations.  The policies and procedures shall include requirements for:  (Ref: Para. A10‑Aus A10.1)

(a)                Personnel to promptly notify the firm of independence breaches of which they become aware;

(b)                The firm to promptly communicate identified breaches of these policies and procedures to:

(i)                 The engagement partner who, with the firm, needs to address the breach; and

(ii)               Other relevant personnel in the firm and, where appropriate, the network, and those subject to the independence requirements who need to take appropriate action; and

(c)                Prompt communication to the firm, if necessary, by the engagement partner and the other individuals referred to in subparagraph 23(b)(ii) of this Standard, of the actions taken to resolve the matter, so that the firm can determine whether it should take further action.

24.               [Deleted by the AUASB.  Refer Aus 24.1]

Aus 24.1 At least annually, the firm shall obtain written confirmation of compliance with its policies and procedures on independence from all firm personnel required to be independent by relevant ethical requirements, and applicable legal and regulatory requirements.  (Ref: Para. A10‑A11)

25.               The firm shall establish policies and procedures:  (Ref: Para. A10‑Aus A10.1)

(a)                Setting out criteria for determining the need to eliminate the circumstances that create a threat of long association with an entity to an acceptable level when using the same senior personnel on an assurance engagement over a long period of time or criteria for applying safeguards to reduce the threat; and

(b)                Requiring, for audits of financial reports of listed entities, the rotation of the engagement partner and the individuals responsible for engagement quality control review, and where applicable, others subject to rotation requirements, after a specified period in compliance with relevant ethical requirements.  (Ref: Para. A12‑A17)

Acceptance and Continuance of Client Relationships and Specific Engagements

26.               The firm shall establish policies and procedures for the acceptance and continuance of client relationships and specific engagements, designed to provide the firm with reasonable assurance that it will only undertake or continue relationships and engagements where the firm:

(a)                Is competent to perform the engagement and has