Monitoring (Ref: Para. 23)Monitoring (Ref: Para. 23)

Monitoring (Ref: Para. 23)

1. ASQC 1 requires the firm to establish a monitoring process designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate and operating effectively.[17]
2. In considering deficiencies that may affect the audit engagement, the engagement partner may have regard to measures the firm took to rectify the situation that the engagement partner considers are sufficient in the context of that audit.
3. A deficiency in the firm’s system of quality control does not necessarily indicate that a particular audit engagement was not performed in accordance with Australian Auditing Standards, relevant ethical requirements, and applicable legal and regulatory requirements, or that the auditor’s report was not appropriate.