Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p22
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 61316–64353

is amended to read as follows:

Engagement teams are entitled to rely on the firm's system of quality control, unless information provided by the firm or other parties suggests otherwise.12 The extent of that reliance will vary with the circumstances, and may affect the nature, timing and extent of the auditor's procedures with respect to such matters asAs 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:

           * …

           * Objectivity. Auditor's internal experts are subject to relevant ethical requirements, including those pertainingrelating 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 and other firm processes, such as protocols for scoping the work of auditor's internal experts, may affect the nature, timing and extent of the auditor's procedures to evaluate the adequacy of the auditor's expert's work.

           * …

Such relianceMatters 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 does not reduce the auditor's responsibility to meet the requirements of this Auditing Standard.

107.           Existing paragraph A15 is amended to read as follows:

Information regarding the competence, capabilities and objectivity of an auditor's expert may come from a variety of sources, such as:

           * …

           * The auditor's firm's system of quality control policies and proceduresmanagement (see paragraphs A11-A13).

108.           Existing paragraph A26 is amended to read as follows:

When there is no written agreement between the auditor and the auditor's expert, evidence of the agreement may be included in, for example:

           * …

           * The policies andor procedures of the auditor's firm's system of quality management. In the case of an auditor's internal expert, the established policies and procedures to which that expert is subject firm's system of quality management may include particular policies andor procedures in relationrelating to thatthe expert's work. The extent of documentation in the auditor's working papers depends on the nature of such policies andor procedures. For example, no documentation may be required in the auditor's working papers if the auditor's firm has detailed protocols covering the circumstances in which the work of such an expert is used.

Amendments to ASA 700 Forming an Opinion and Reporting on a Financial Report

109.           Existing paragraph A36 is amended to