Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p15
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 15/31)
Character Range: 50483–53633

monitoring policies and procedures designed to comply with this Standard, and these firms place reliance on such a monitoring system, the firm's policies and procedures shall require that:

(a)                At least annually, the network communicate the overall scope, extent and results of the monitoring process to appropriate individuals within the network firms; and

(b)                The network communicate promptly any identified deficiencies in the system of quality control to appropriate individuals within the relevant network firm or firms so that the necessary action can be taken,

    in order that engagement partners in the network firms can rely on the results of the monitoring process implemented within the network, unless the firms or the network advise otherwise.

Complaints and Allegations

55.               The firm shall establish policies and procedures designed to provide it with reasonable assurance that it deals appropriately with:

(a)                Complaints and allegations that the work performed by the firm fails to comply with AUASB Standards, relevant ethical requirements, and applicable legal and regulatory requirements; and

(b)                Allegations of non‑compliance with the firm's system of quality control.

    As part of this process, the firm shall establish clearly defined channels for firm personnel to raise any concerns in a manner that enables them to come forward without fear of reprisals.  (Ref: Para. A70)

56.               If during the investigations into complaints and allegations, deficiencies in the design or operation of the firm's quality control policies and procedures or non‑compliance with the firm's system of quality control by an individual or individuals are identified, the firm shall take appropriate actions as set out in paragraph 51 of this Standard.  (Ref: Para. A71‑A72)

Documentation of the System of Quality Control

57.               The firm shall establish policies and procedures requiring appropriate documentation to provide evidence of the operation of each element of its system of quality control.  (Ref: Para. A73‑A75)

58.               The firm shall establish policies and procedures that require retention of documentation for a period of time sufficient to permit those performing monitoring procedures to evaluate the firm's compliance with its system of quality control, or for a longer period if required by law or regulation.

59.               The firm shall establish policies and procedures requiring documentation of complaints and allegations and the responses to them.

* * *

Application and Other Explanatory Material

Applying, and Complying with, Relevant Requirements (Ref: Para. 14)

Considerations Specific to Smaller Firms

A1.             This Standard does not call for compliance with requirements that are not relevant, for example, in the circumstances of a sole practitioner with no staff.  Requirements in this Standard such as those for policies and procedures for the assignment of appropriate personnel to the engagement team (see paragraph 31), for review responsibilities (see paragraph 33), and for