Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p35
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 104266–107525

from a client, even if the value is trivial and inconsequential.

      * The firm sets rotation periods for all engagement partners, including those performing other assurance or related services engagements, and extends the rotation periods to all senior engagement team members.

A64.         Other components may affect or relate to the relevant ethical requirements component.
Examples of relationships between the relevant ethical requirements component and other components

      * The information and communication component may address the communication of various matters related to relevant ethical requirements, including:

              + The firm communicating the independence requirements to all personnel and others subject to independence requirements.

              + Personnel and engagement teams communicating relevant information to the firm without fear of reprisals, such as situations that may create threats to independence, or breaches of relevant ethical requirements.

      * As part of the resources component, the firm may:

              + Assign individuals to manage and monitor compliance with relevant ethical requirements or to provide consultation on matters related to relevant ethical requirements.

              + Use IT applications to monitor compliance with relevant ethical requirements, including recording and maintaining information about independence.

A65.         The relevant ethical requirements that apply to others depend on the provisions of the relevant ethical requirements and how the firm uses others in its system of quality management, or in the performance of engagements.
Examples of relevant ethical requirements that apply to others

      * Relevant ethical requirements may include requirements for independence that apply to network firms or employees of network firms, for example, the APESB Code includes independence requirements that apply to network firms.

      * Relevant ethical requirements may include a definition of engagement team or other similar concept, and the definition may include any individual who performs assurance procedures on the engagement (e.g., a component auditor or a service provider engaged to attend a physical inventory count at a remote location). Accordingly, any requirements of the relevant ethical requirements that apply to the engagement team as defined in the relevant ethical requirements, or other similar concept, may also be relevant to such individuals.

      * The principle of confidentiality may apply to the firm's network, other network firms or service providers, when they have access to client information obtained by the firm.

Public Sector Considerations

A66.         In achieving the quality objectives in this ASQM related to independence, public sector auditors may address independence in the context of the public sector mandate and statutory measures.

Acceptance and Continuance of Client Relationships and Specific Engagements

The Nature and Circumstances of the Engagement and the Integrity and Ethical Values of the Client (Ref: Para. 30(a)(i))

A67.         The information obtained about the nature and circumstances of the engagement may include:

           * The industry of the entity for which the