Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p13
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 13/31)
Character Range: 44415–47731

that:

(a)                The procedures required by the firm's policies on engagement quality control review have been performed;

(b)                The engagement quality control review has been completed on or before the date of the report; and

(c)                The reviewer is not aware of any unresolved matters that would cause the reviewer to believe that the significant judgements the engagement team made and the conclusions it reached were not appropriate.

Differences of Opinion

43.               The firm shall establish policies and procedures for dealing with and resolving differences of opinion within the engagement team, with those consulted and, where applicable, between the engagement partner and the engagement quality control reviewer.  (Ref: Para. A52‑A53)

44.               Such policies and procedures shall require that:

(a)                Conclusions reached be documented and implemented; and

(b)                The date of the report cannot be earlier than the date on which the matter is resolved.

Engagement Documentation

Completion of the Assembly of Final Engagement Files

45.               The firm shall establish policies and procedures for engagement teams to complete the assembly of final engagement files on a timely basis after the engagement reports have been finalised.  (Ref: Para. A54‑A55)

Confidentiality, Safe Custody, Integrity, Accessibility and Retrievability of Engagement Documentation

46.               The firm shall establish policies and procedures designed to maintain the confidentiality, safe custody, integrity, accessibility and retrievability of engagement documentation.  (Ref: Para. A56‑A59)

Retention of Engagement Documentation

47.               The firm shall establish policies and procedures for the retention of engagement documentation for a period sufficient to meet the needs of the firm or as required by law or regulation.  (Ref: Para. A60‑Aus A63.1)

Monitoring

Monitoring the Firm's Quality Control Policies and Procedures

48.               The firm shall establish a monitoring process designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, and operating effectively.  This process shall:

(a)                Include an ongoing consideration and evaluation of the firm's system of quality control including, on a cyclical basis, inspection of at least one completed engagement for each engagement partner;

(b)                Require responsibility for the monitoring process to be assigned to a partner or partners or other persons with sufficient and appropriate experience and authority in the firm to assume that responsibility; and

(c)                Require that those performing the engagement or the engagement quality control review are not involved in inspecting the engagements.  (Ref: Para. A64‑Aus A68.1)

Evaluating, Communicating and Remedying Identified Deficiencies

49.               The firm shall evaluate the effect of deficiencies noted as a result of the monitoring process and determine whether they are either:

(a)                Instances that do not necessarily indicate that the firm's system of quality control is insufficient to provide it with reasonable assurance that it complies with AUASB