Paragraph Aus 0.1 of ASQM 1 is amended as follows:
Subparagraph (e) becomes subparagraph (g);
Subparagraph (f) becomes subparagraph (h);
Insert the following new subparagraphs:
(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;
(f) assurance over other sustainability information for other purposes;
Paragraph Aus 4.1 of ASQM 1 is amended as follows and footnote ‘*’ removed:
This ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).
Paragraph Aus 16.7 of ASQM 1 is amended as follows:
AUASB Standards means standards issued by the AUASB, comprising:
(a) Australian Auditing Standards which means the suite of auditing standards issued by the AUASB, comprising:
Auditing Standards made under section 336 of the Corporations Act 2001;
ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and
ASA 810 Engagements to Report on Summary Financial Statements.
(b) Australian Standards on Review Engagements;
(c) Australian Standards on Assurance Engagements; and
(d) Australian Standards on Sustainability Assurance; and
(de) Australian Standards on Related Services..
Paragraph Aus 16.8 of ASQM 1 is amended as follows:
Relevant ethical requirements means:
(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and
(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. (Ref: Para. A22-A24; A62)
Insert new paragraph Aus 16.9 after paragraph Aus 16.8 of ASQM 1 as follows:
The Code means:
for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and
for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.
As a result of the insertion, ‘APESB Code’ will be replaced with ‘the Code’ throughout ASQM 1.
Paragraph A1 of ASQM 1 is amended to read as follows and footnotes 7 and 8 are inserted:
Other pronouncements of the AUASB, including ASRE 24005 and ASAE 3000,6 also establish requirements for the engagement partner or engagement leader, as applicable, for the management of quality at the engagement level, including ASRE 24005 and ASAE 30006 for the engagement partner, and ASSA 5000[7] for the engagement leader.[8]for the management of quality at the engagement level.
As a result of the footnotes insertion above, subsequent footnotes of this ASQM 1 are re-numbered and references to these footnotes are updated accordingly.
Paragraph A2 of ASQM 1 is amended to read as follows and footnote 9 is deleted:
The APESB Code9 contains requirements and application material for members or practitioners that enable members and practitioners to meet their responsibility to act in the public interest. As indicated in paragraph 15, in the context of engagement performance as described in this ASQM, the consistent performance of quality engagements forms part of the member’s or practitioner’s responsibility to act in the public interest.
Paragraph A22 of ASQM 1 is amended to read as follows:
The relevant ethical requirements that are applicable in the context of a system of quality management may vary, depending on the nature and circumstances of the firm and its engagements. The term “member” may be defined in relevant ethical requirements. For example, the APESB Code defines the term “member” and further explains the scope of provisions in the APESB Code that apply to individual members in public practice or practitioners and their firms.
Paragraph A23 of ASQM 1 is amended to read as follows:
The APESB Code addresses circumstances when law or regulation precludes the member from complying with certain parts of the APESB Code. It further acknowledges that some jurisdictions might have provisions in law or regulation that differ from or go beyond those set out in the APESB Code and that members or practitioners in those jurisdictions need to be aware of those differences and comply with the more stringent provisions, unless prohibited by law or regulation.
Paragraph A62 of ASQM 1 is amended to read as follows:
The APESB Code sets out the fundamental principles of ethics that establish the standards of behaviour expected of a member or practitioner and establishes the Australian Independence Standards. The fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The APESB Code also specifies the approach that a member or practitioner is required to apply to comply with the fundamental principles and, when applicable, the Australian Independence Standards. In addition, the APESB Code addresses specific topics relevant to complying with the fundamental principles. Law or regulation in a jurisdiction may also contain provisions addressing ethical requirements, including independence, such as privacy laws affecting the confidentiality of information.
Paragraph A83 of ASQM 1 is amended to read as follows:
Law, regulation or AUASB standards may prescribe the time limits by which the assembly of final engagement files for specific types of engagements are to be completed. Where no such time limits are prescribed in law or regulation, the time limit may be determined by the firm. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, an appropriate time limit within which to complete the assembly of the final engagement file is ordinarily not more than 60 days after the date of the engagement report.
Paragraph A85 of ASQM 1 is amended to read as follows:
Law, regulation or AUASB standards may prescribe the retention periods for engagement documentation. If the retention periods are not prescribed, the firm may consider the nature of the engagements performed by the firm and the firm’s circumstances, including whether the engagement documentation is needed to provide a record of matters of continuing significance to future engagements. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, the retention period is ordinarily no shorter than five years from the date of the engagement report, or, if later, the date of the auditor’s report on the group financial report, when applicable.
Section Amendments to ASQM 1 - Auditing Standard ASA 2025-2 Amendments to Australian Auditing Standards - Amendments to ASQM 1 | Zoe