Document ID: chunk:federal_register_of_legislation:F2022C01191:reg:8:p8
Version: federal_register_of_legislation:F2022C01191
Segment Type: reg
Provision Reference: reg 8 (pt 8/17)
Character Range: 27116–30167

matter.

           * The expert is an auditor's external expert and is not, therefore, subject to the firm's system of quality management.

The Auditor's Firm's System of Quality Management (Ref: Para. 8(e))

A11.         An auditor's internal expert may be a partner or staff (i.e., personnel), including temporary staff, of the auditor's firm, and therefore subject to the system of quality management of that firm in accordance with ASQM 1.[9],[10]  An auditor's internal expert may also be a partner or staff, including temporary staff, of a network firm, and is subject to the firm's policies or procedures for network requirements and network services in accordance with ASQM 1. In some instances, the auditor's internal expert of a network firm may be subject to common quality management policies or procedures as the auditor's firm, given that they are part of the same network.

A12.         ASQM 1 requires the firm to address the use of resources from a service provider, which includes the use of an external expert.[11] An auditor's external expert is not a member of the engagement team and may  not be subject to the firm's policies or procedures under its system of quality management.[12] Furthermore, the firm's policies or procedures for relevant ethical requirements may include policies or procedures that apply to the auditor's external expert.[13] In some cases, relevant ethical requirements or law or regulation may require that an auditor's external expert be:

           * Treated as a member of the engagement team (i.e., the external expert, may be subject to relevant ethical requirements, including those related to independence); or

           * Subject to other professional requirements.

A13.         As described in ASA 220, quality management at the engagement level is supported by the firm's system of quality management and informed by the specific nature and circumstances of the audit engagement.[14] For example, the auditor may be able to depend on the firm's related policies or procedures in respect of:

           * Competence and capabilities, through recruitment and training programs.

           * Objectivity.  Auditor's internal experts are subject to relevant ethical requirements, including those relating to independence.

           * The auditor's evaluation of the adequacy of the auditor's expert's work.  For example, the firm's training programs may provide auditor's internal experts with an appropriate understanding of the interrelationship of their expertise with the audit process.  Reliance on such training may affect the nature, timing and extent of the auditor's procedures to evaluate the adequacy of the auditor's expert's work.

           * Adherence to regulatory and legal requirements, through monitoring processes.

           * Agreement with the auditor's expert.

     Matters that the auditor may take into account when determining whether to depend on the firm's policies or procedures are described in ASA 220.[15] Depending on the firm's policies or procedures