Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p23
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 23/31)
Character Range: 74515–77750

consult on difficult or contentious matters.

A38.         Effective consultation on significant technical, ethical and other matters within the firm, or where applicable, outside the firm can be achieved when those consulted:

           * are given all the relevant facts that will enable them to provide informed advice; and

           * have appropriate knowledge, seniority and experience,

           * and when conclusions resulting from consultations are appropriately documented and implemented.

A39.         Documentation of consultations with other professionals that involve difficult or contentious matters that is sufficiently complete and detailed contributes to an understanding of:

           * The issue on which consultation was sought; and

           * The results of the consultation, including any decisions taken, the basis for those decisions and how they were implemented.

Considerations Specific to Smaller Firms

A40.         A firm needing to consult externally, for example, a firm without appropriate internal resources, may take advantage of advisory services provided by:

           * Other firms;

           * Professional and regulatory bodies; or

           * Commercial organisations that provide relevant quality control services.

           * Before contracting for such services, consideration of the competence and capabilities of the external provider helps the firm to determine whether the external provider is suitably qualified for that purpose.

Engagement Quality Control Review

Criteria for an Engagement Quality Control Review (Ref: Para. 35(b))

A41.         Criteria for determining which engagements other than audits of financial reports of listed entities are to be subject to an engagement quality control review may include, for example:

           * The nature of the engagement, including the extent to which it involves a matter of public interest.

           * The identification of unusual circumstances or risks in an engagement or class of engagements.

           * Whether laws or regulations require an engagement quality control review.

Nature, Timing and Extent of the Engagement Quality Control Review (Ref: Para. 36‑37)

A42.         The date of the engagement report cannot be earlier than the date on which the engagement quality control review is completed.  However, documentation of the engagement quality control review may be completed after the date of the report.

A43.         Conducting the engagement quality control review in a timely manner at appropriate stages during the engagement allows significant matters to be promptly resolved to the engagement quality control reviewer's satisfaction on or before the date of the report.

A44.         The extent of the engagement quality control review may depend, among other things, on the complexity of the engagement, whether the entity is a listed entity, and the risk that the report might not be appropriate in the circumstances.  The performance of an engagement quality control review does not reduce the responsibilities of the engagement partner.

Engagement Quality Control Review of a Listed Entity (Ref: Para. 38)

A45.         Other matters relevant to evaluating the significant