Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p90
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 291812–295030

procedures that would be applicable to an internal audit function (such as those relating to leadership, human resources and engagement performance) or quality control requirements in standards set by the relevant professional bodies for internal auditors. Such bodies may also establish other appropriate requirements such as conducting periodic external quality assessments.

Communications Among Those Involved in the Engagement (Ref: Para. 60)

 1.       Clear and timely communication about responsibilities, along with clear direction about the nature, timing and extent of the work to be performed, and the matters expected to be communicated to the practitioner, helps establish the basis for effective two-way communication. Effective two-way communication also helps to set expectations for work performed at various locations (e.g., by component practitioners) and facilitates the practitioner's direction, supervision and review of that work. Such communication also provides an opportunity for the engagement leader to reinforce the need to exercise professional scepticism in performing the work.

 2.       Other factors that may also contribute to effective two-way communication include:

           * Clarity of any instructions issued (e.g., to a component practitioner).

           * A mutual understanding of relevant issues and the expected actions arising from the communication process.

           * The form of communications. For example, matters that need timely attention may be more appropriately discussed in a meeting rather than by exchanging emails.

           * A mutual understanding between the practitioner and component practitioner about which individuals have responsibility for managing communications regarding particular matters.

           * The process for reporting back to the practitioner on the results of the work performed or significant issues encountered in performing the work.

 1.       The communications depend on the facts and circumstances of the engagement, including, for example, the nature and extent of involvement of component practitioners and the degree to which the practitioner and component practitioners are subject to common systems of quality management, or the involvement of a practitioner's external expert.

 2.       The form of the communications may be affected by such factors as:

           * The significance, complexity or urgency of the matter.

           * Whether the matter has been or is expected to be communicated to the entity's management or those charged with governance.

 1.       The appropriate timing of communications will vary with the circumstances of the engagement. Relevant circumstances may include the nature, timing and extent of work to be performed by others. For example, communications regarding planning matters may often be made early in the engagement and, for an initial sustainability assurance engagement, may be made as part of agreeing the terms of the engagement.

Monitoring and Remediation (Ref: Para. 63)

 1.       In considering information communicated by the firm through its monitoring and remediation process and how it may affect the engagement, the engagement leader may consider