Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p37
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 110153–113310

resources). In some cases, the firm may use a service provider to perform the background search.

A70.         Information that is obtained during the firm's acceptance and continuance process may often also be relevant to the engagement team when planning and performing the engagement. AUASB standards may specifically require the engagement team to obtain or consider such information. For example, ASA 220[11] requires the engagement partner to take into account information obtained in the acceptance and continuance process in planning and performing the audit engagement.

A71.         AUASB standards or applicable legal and regulatory requirements may include specific provisions that need to be addressed before accepting or continuing a client relationship or specific engagement and may also require the firm to make enquiries of an existing or predecessor firm when accepting an engagement. For example, when there has been a change of auditors, ASA 300[12] requires the auditor, prior to starting an initial audit, to communicate with the predecessor auditor in compliance with relevant ethical requirements. The APESB Code also includes requirements for the consideration of conflicts of interests in accepting or continuing a client relationship or specific engagement and communication with the existing or predecessor firm when accepting an engagement that is an audit or review of a financial report.

The Firm's Ability to Perform the Engagement (Ref: Para. 30(a)(ii))

A72.         The firm's ability to perform the engagement in accordance with AUASB standards and applicable legal and regulatory requirements may be affected by:

           * The availability of appropriate resources to perform the engagement;

           * Having access to information to perform the engagement, or to the persons who provide such information; and

           * Whether the firm and the engagement team are able to fulfill their responsibilities in relation to the relevant ethical requirements.
Examples of factors the firm may consider in determining whether appropriate resources are available to perform the engagement

      * The circumstances of the engagement and the reporting deadline.

      * The availability of individuals with the appropriate competence and capabilities, including sufficient time, to perform the engagement. This includes having:

              + Individuals to take overall responsibility for directing and supervising the engagement;

              + Individuals with knowledge of the relevant industry or the underlying subject matter or criteria to be applied in the preparation of the subject matter information and experience with relevant regulatory or reporting requirements; and

              + Individuals to perform audit procedures on the financial information of a component for purposes of an audit of a group financial report.

      * The availability of experts, if needed.

      * If an engagement quality review is needed, whether there is an individual available who meets the eligibility requirements in ASQM 2.

      * The need for technological resources, for example, IT applications that