Yes! A recent update to the Engage App setting options enables members to record their outsourced services and cloud hosting details required for inclusion in the terms
Background
The Accounting Professional and Ethical Standards Board Limited (APESB) recently updated APES 305 Terms of Engagement requiring professionals to include the details of all outsourced services and cloud computing in their engagement letters. The new standard is effective for engagements commencing on or after 1 July 2021, with earlier adoption permitted.
An outsourced service means a service involved in outsourcing a material business activity to an outsourced service provider, who may not be located in the same country or may not even be a member of a professional body.
On the other hand, cloud computing refers to computing resources provided over the internet, including on-demand access to networks, servers, data storage, databases, software and applications. Cloud computing entrusts the remote third party with data and information of the firm’s clients.
Where either of these new requirements are met, practitioners must document and communicate with clients by updating all engagement letters to include:
• The details of the provider
• The geographic location of where the services will be performed
• The nature and extent of the services to be utilised
Action required by you
To add the required details to the Engagement Terms please update the following Engage App settings:
- Users with Admin access can log in to the ChangeGPS platform and navigate to
Settings > General > Engage Section - Update both the details in the Cloud Computing and Outsourcing sections
- Cloud Computing values to be entered: Provider, Description and Location
- Outsourced Services details (if applicable) to added: Provider, Location and Services
- If no outsourced services are used please leave fields blank and this section will be excluded
When done, be sure to scroll down to the bottom of the page and click Save Changes
Updated Terms of Engagement
The Terms of Engagement now include these details on Page 9 as follows:
