ASQC 1 - Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements
COMPILATION DETAILSCOMPILATION DETAILS
Start here
Get a plain-English read of COMPILATION DETAILS
Turn the raw legal text into a practical explanation grounded in ASQC 1 - Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements.
The most recently compiled versions of Auditing Standards, original Standards and amending Standards (see Compilation Details) are available on the AUASB website: www.auasb.gov.au
Contact Details
Auditing and Assurance Standards BoardPodium LevelLevel 14, 530 Collins StreetMelbourne Victoria 3000AUSTRALIA
Phone: (03) 8080 7400E‑mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA
Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
This Auditing Standard reproduces substantial parts of the corresponding International Standard on Quality Control issued by the International Auditing and Assurance Standards Board (IAASB) and published by the International Federation of Accountants (IFAC), in the manner described in the statement on Conformity with International Standards on Quality Control. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Quality Control incorporated in this Auditing Standard throughout the world.
All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use only.
Further information and requests for authorisation to reproduce this Auditing Standard for commercial purposes outside Australia should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne Victoria 8007 or sent to enquiries@auasb.gov.au. Any decision to approve a request may also require the agreement of IFAC.
Part COMPILATION DETAILS - ASQC 1 - Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements - COMPILATION DETAILS | Zoe
ISSN 1833‑4393
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON QUALITY CONTROL
Documentation of the System of Quality Control................................A73-A75
COMPILATION DETAILS
Auditing Standard ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, Other Assurance Engagements and Related Services Engagements (as Amended)
This compilation takes into account amendments made up to and including 30 June 2020 and was prepared on 8 July 2020 by the Auditing and Assurance Standards Board (AUASB).
This compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASQC 1 (October 2009) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Standard
Date made
Operative Date
ASQC 1 [A]
27 October 2009
financial reporting periods commencing on or after 1 January 2010
ASA 2011‑1 [B]
27 June 2011
financial reporting periods commencing on or after 1 July 2011
ASA 2013‑2 [C]
11 November 2013
financial reporting periods commencing on or after 1 January 2014
ASA 2017-2 [D]
30 May 2017
financial reporting periods commencing on or after 1 January 2018
ASA 2020-2 [E]
30 June 2020
financial reporting periods ending on or after 15 July 2020
[A] Federal Register of Legislation – registration number F2009L04063, 12 November 2009
[B] Federal Register of Legislation – registration number F2011L01379, 30 June 2011
[C] Federal Register of Legislation – registration number F2013L01939, 14 November 2013
[D] Federal Register of Legislation – registration number F2017L01179, 13 September 2016
[E] Federal Register of Legislation – registration number F2020L00885, 7 July 2020
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
Aus A63.1
Amended
ASA 2011-1 [11]
Aus 12.12 Footnote *
Amended
ASA 2011-1 [12]
A53 Footnote *
Amended
ASA 2011-1 [13]
Title
Amended
ASA 2013-2 [8]
Conformity Statement
Amended
ASA 2013-2 [9]
Aus 0.1
Amended
ASA 2013-2 [10]
Aus 1.1
Amended
ASA 2013-2 [11]
Aus 4.1
Amended
ASA 2013-2 [12]
9
Amended
ASA 2013-2 [13]
Aus 12.2
Amended
ASA 2013-2 [14]
Aus 12.5
Amended
ASA 2013-2 [15]
12(f)
Amended
ASA 2013-2 [16]
12(f)Footnote 3
Addition
ASA 2013-2 [17]
12(f)Footnote #
Addition
ASA 2013-2 [17]
Footnote references
Re-numbered
ASA 2013-2 [18]
Aus 12.6
Addition
ASA 2013-2 [19]
Aus 12.7-Aus 12.13
Re-numbered
ASA 2013-2 [20]
Aus 12.10
Amended
ASA 2013-2 [21]
Aus 12.11
Amended
ASA 2013-2 [22]
Aus 12.13
Amended
ASA 2013-2 [23]
14
Amended
ASA 2013-2 [24]
35(b)
Amended
ASA 2013-2 [25]
Aus A7.1
Amended
ASA 2013-2 [26]
A45
Amended
ASA 2013-2 [27]
Aus 12.13 Footnote *
Amended
ASA 2017-2 [7]
A53 Footnote *
Amended
ASA 2017-2 [8]
A56
Amended
ASA 2017-2 [9]
21
Amended
ASA 2020-2 [8]
Aus 21.1
Addition
ASA 2020-2 [9]
22
Amended
ASA 2020-2 [10]
25
Amended
ASA 2020-2 [11]
A11
Amended
ASA 2020-2 [12]
A12
Amended
ASA 2020-2 [13]
Aus A12.1
Amended
ASA 2020-2 [14]
Aus A13.1
Amended
ASA 2020-2 [15]
Aus A14.1
Amended
ASA 2020-2 [16]
A56 Footnote 5
Amended
ASA 2020-2 [17]
AUTHORITY STATEMENT
Auditing Standard ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, Other Assurance Engagements and Related Services Engagements (as amended to 30 June 2020) is set out in paragraphs Aus 0.1 to A75.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to Australian Auditing Standards, which sets out the intentions of the AUASB on how the Australian Auditing Standards, operative for financial reporting periods commencing on or after 1 January 2010, are to be understood, interpreted and applied.
Conformity with International Standards on Quality Control
This Auditing Standard conforms with International Standard on Quality Control ISQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISQC) are identified with the prefix “Aus”.
The following requirements are additional to ISQC 1:
At least annually, the firm shall obtain written confirmation of compliance with its policies and procedures on independence from all firm personnel required to be independent by relevant ethical requirements, and applicable legal and regulatory requirements. (Ref: Para. Aus 24.1)
The firm shall establish policies and procedures designed to provide it with reasonable assurance that:
Appropriate consultation takes place on difficult or contentious matters;
Sufficient resources are available to enable appropriate consultation to take place;
The nature and scope of, and conclusions resulting from, such consultations are documented and are agreed by both the individual seeking consultation and the individual consulted; and
Conclusions resulting from consultations are implemented; or
The reasons alternative courses of action from consultations were undertaken, are documented. (Ref: Para. Aus 34.1)
The following application and other explanatory material are additional to ISQC 1:
For audits or reviews of financial reports conducted under the Corporations Act 2001 (the Act), section 307B of that Act requires an auditor or member of an audit firm to retain all audit working papers prepared by or for, or considered or used by, the auditor in accordance with the requirements of the Australian Auditing Standards until:
(a) The end of seven years after the date of the audit report prepared in relation to the audit or review to which the audit working papers relate; or
(b) An earlier date determined by the Australian Securities and Investments Commission for the audit working papers. (Ref: Para. Aus A61.1)
Relevant law or regulation, other than the Corporations Act 2001, may require the retention of audit working papers for specified periods. (Ref: Para. Aus A61.2)
Unless otherwise specified by law or regulation, engagement documentation remains the property of the firm. The firm may, at its discretion, make portions of, or extracts from, engagement documentation available to clients, provided such disclosure does not undermine the validity of the work performed or the independence of the firm or its personnel. (Ref: Para. Aus A63.1)
In the public sector, an auditor appointed under statute (for example, an Auditor‑General) may delegate responsibility for an engagement. The monitoring process needs to include, on a cyclical basis, inspection of at least one completed engagement of each person with delegated responsibility for an engagement and its performance. This includes an external person engaged as the person responsible for an engagement. (Ref: Para. Aus A68.1)
This Auditing Standard incorporates terminology and definitions used in Australia.
The equivalent requirements and related application and other explanatory material included in ISQC 1 in respect of “relevant ethical requirements”, have been included in another Auditing Standard, ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. There is no international equivalent to ASA 102.
Compliance with this Auditing Standard enables compliance with ISQC 1.