Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p21
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 62352–65803

that the objectives of the system of quality management are being achieved; or (Ref: Para. A192)

(c)                The system of quality management does not provide the firm with reasonable assurance that the objectives of the system of quality management are being achieved. (Ref: Para. A192–A194)

55.               If the individual(s) assigned ultimate responsibility and accountability for the system of quality management reaches the conclusion described in paragraph 54(b) or 54(c), the firm shall: (Ref: Para. A196)

(a)                Take prompt and appropriate action; and

(b)                Communicate to:

(i)                 Engagement teams and other individuals assigned activities within the system of quality management to the extent that it is relevant to their responsibilities; and (Ref: Para. A197)

(ii)               External parties in accordance with the firm's policies or procedures required by paragraph 34(e). (Ref: Para. A198)

56.               The firm shall undertake periodic performance evaluations of the individual(s) assigned ultimate responsibility and accountability for the system of quality management, and the individual(s) assigned operational responsibility for the system of quality management. In doing so, the firm shall take into account the evaluation of the system of quality management. (Ref: Para. A199–A201)

Documentation

57.               The firm shall prepare documentation of its system of quality management that is sufficient to: (Ref: Para. A202–A204)

(a)                Support a consistent understanding of the system of quality management by personnel, including an understanding of their roles and responsibilities with respect to the system of quality management and the performance of engagements;

(b)                Support the consistent implementation and operation of the responses; and

(c)                Provide evidence of the design, implementation and operation of the responses, to support the evaluation of the system of quality management by the individual(s) assigned ultimate responsibility and accountability for the system of quality management.

58.               In preparing documentation, the firm shall include:

(a)                The identification of the individual(s) assigned ultimate responsibility and accountability for the system of quality management and operational responsibility for the system of quality management;

(b)                The firm's quality objectives and quality risks; (Ref: Para. A205)

(c)                A description of the responses and how the firm's responses address the quality risks;

(d)                Regarding the monitoring and remediation process:

(i)                 Evidence of the monitoring activities performed;

(ii)               The evaluation of findings, and identified deficiencies and their related root cause(s);

(iii)             Remedial actions to address identified deficiencies and the evaluation of the design and implementation of such remedial actions; and

(iv)             Communications about monitoring and remediation; and

(e)                The basis for the conclusion reached pursuant to paragraph 54.

59.               The firm shall document the matters in paragraph 58 as they relate to network requirements or network services and the evaluation of the network requirements or network services in accordance with paragraph 49(b). (Ref: Para. A206)

60.               The