Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p21
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 58543–61567

otherwise be the case:

           * …

           * The expert is an auditor's external expert and is not, therefore, subject to the firm's system of quality control policies and proceduresmanagement.

102.           Existing paragraph A11 and its sub-heading are amended to read as follows:

The Auditor's Firm's System of Quality Control Policies and ProceduresManagement (Ref: Para. 8(e))

An auditor's internal expert may be a partner or staff (i.e., personnel), including temporary staff, of the auditor's firm, and therefore subject to the system of quality control policies and proceduresmanagement of that firm in accordance with ASQCM 1.9,10 Alternatively, an An auditor's internal expert may also be a partner or staff, including temporary staff, of a network firm, and is subject to the firm's policies or procedures for network requirements and network services in accordance with ASQM 1. In some instances, the auditor's internal expert of a network firm may be subject towhich may share common quality controlmanagement policies andor procedures as with the auditor's firm, given that they are part of the same network.

103.           Existing footnotes 9 and 10 in paragraph A11 are amended to read as follows:

9 See ASQCM 1 Quality ControlManagement for Firms that Perform Audits andor Reviews of Financial Reports and Other Financial Information, andor Other Assurance or Related Services Engagements, paragraph 12(f)16(w).

10 See ASA 220, paragraphs 2 and A13.

104.           Existing paragraph A12 is amended to read as follows:

ASQM 1 requires the firm to address the use of resources from a service provider, which includes the use of an external expert.[11] An auditor's external expert is not a member of the engagement team and ismay not be subject to quality control policies and procedures in accordance with ASQC 1.11 In some jurisdictions, however, the firm's policies or procedures under its system of quality management.[12] Furthermore, the firm's policies or procedures for relevant ethical requirements may include policies or procedures that apply to the auditor's external expert.[13] In some cases, relevant ethical requirements or law or regulation may require that an auditor's external expert be:

           * tTreated as a member of the engagement team (i.e., the external expert, and may therefore be subject to relevant ethical requirements, including those pertainingrelated to independence); or

           * Subject to, and other professional requirements, as determined by that law or regulation.

105.           As a result of the footnotes insertion above, subsequent footnotes of this Auditing Standard are re-numbered and references to these footnotes are updated accordingly.

106.           Existing paragraph A13 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,