Conformity with International Standards Conformity with International Standards on Quality Control

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)