AU-C Section 220.20: Engagement Consultation

AU-C Section 220.20 says:

"The engagement partner should 

•  take responsibility for the engagement team undertaking appropriate consultation on difficult or contentious matters; 
• be satisfied that members of the engagement team have under-taken appropriate consultation during the course of the engagement, both within the engagement team and between the engagement team and others at the appropriate level within or outside the firm;
• be satisfied that the nature and scope of such consultations are agreed with, and conclusions resulting from such consultations are understood by, the party consulted; and 
• determine that conclusions resulting from such consultations have been implemented. (Ref: par. .A20–.A22)"

 
Members of the engagement team have a responsibility to bring to the attention of appropriate personnel matters that, in their professional judgment, are difficult or contentious and may require consultation.

Effective consultation on significant technical, ethical, and other matters within the firm or, when 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, authority, and experience.

The engagement team may consult outside the firm (for example, when the firm lacks appropriate internal resources).The engagement team may take advantage of advisory services provided by other firms, professional and regulatory bodies, or commercial organizations that provide relevant quality
control services.


https://www.aicpa.org/content/dam/aicpa/research/standards/auditattest/downloadabledocuments/au-c-00220.pdf