Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p44
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 130524–133680

differ

      * In a less complex firm, the technological resources may comprise a commercial IT application used by engagement teams, which has been purchased from a service provider. The IT processes that support the operation of the IT application may also be relevant, although they may be simple (e.g., processes for authorising access to the IT application and processing updates to the IT application).

      * In a more complex firm, the technological resources may be more complex and may comprise:

              + Multiple IT applications, including custom developed applications or applications developed by the firm's network, such as:

                                IT applications used by engagement teams (e.g., engagement software and automated audit tools).

                                IT applications developed and used by the firm to manage aspects of the system of quality management (e.g., IT applications to monitor independence or assign personnel to engagements).

           * The IT processes that support the operation of these IT applications, including the individuals responsible for managing the IT infrastructure and IT processes and the firm's processes for managing program changes to the IT applications.

A100.      The firm may consider the following matters in obtaining, developing, implementing and maintaining an IT application:

           * The data inputs are complete and appropriate;

           * Confidentiality of the data is preserved;

           * The IT application operates as designed and achieves the purpose for which it is intended;

           * The outputs of the IT application achieve the purpose for which they will be used;

           * The general IT controls necessary to support the IT application's continued operation as designed are appropriate;

           * The need for specialised skills to utilise the IT application effectively, including the training of individuals who will use the IT application; and

           * The need to develop procedures that set out how the IT application operates.

A101.      The firm may specifically prohibit the use of IT applications or features of IT applications until such time that it has been determined that they operate appropriately and have been approved for use by the firm. Alternatively, the firm may establish policies or procedures to address circumstances when the engagement team uses an IT application that is not approved by the firm. Such policies or procedures may require the engagement team to determine that the IT application is appropriate for use prior to using it on the engagement, through considering the matters in paragraph A100. ASA 220[18] addresses the engagement partner's responsibilities for engagement resources.

Intellectual Resources (Ref: Para. 32(g))

A102.      Intellectual resources include the information the firm uses to enable the operation of the system of quality management and promote consistency in the performance of engagements.
Examples of intellectual resources

Written policies or procedures, a methodology, industry or subject matter-specific guides, accounting guides,