© 2026 Zoe. All rights reserved.
Zoe is a legal information platform. Always consult the Federal Register of Legislation for authoritative text.
Commonwealth legislation
ASQM 1 requires audit and assurance firms to establish and maintain a risk‑based quality management system so their work is consistently reliable. It applies to firms, partners and staff, networks and service providers involved in audits, reviews and assurance engagements.
This protects the public interest by boosting confidence in audit reports, requires top‑level responsibility and annual evaluation, and includes Australian‑specific ethics and legal references (APES 110, Corporations Act) and some stricter prohibitions.
Want the full deep dive?
Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.
Direct links to the current provisions in Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services 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
| Auditing and Assurance Standards BoardPhone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA |
|---|
© 2025 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).
Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Director – National, 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 Management 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 Management. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Quality Management 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 Director – National, 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.
ISSN 1833-4393
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON QUALITY MANAGEMENT
Paragraphs
Application............................................................Aus 0.1
Operative Date.........................................................Aus 0.2
Introduction
Scope of this Auditing Standard.................................................1-5
The Firm’s System of Quality Management........................................6-11
Authority of this ASQM.......................................................12
Effective Date..............................................................13
Objective...............................................................14-15
Definitions.........................................................16-Aus 16.8
Requirements
Applying, and Complying with, Relevant Requirements..............................17-18
System of Quality Management...............................................19-22
The Firm’s Risk Assessment Process...........................................23-27
Governance and Leadership....................................................28
Relevant Ethical Requirements..................................................29
Acceptance and Continuance of Client Relationships and Specific Engagements...............30
Engagement Performance......................................................31
Resources.................................................................32
Information and Communication.................................................33
Specified Responses..........................................................34
Monitoring and Remediation Process...........................................35-47
Network Requirements or Network Services......................................48-52
Evaluating the System of Quality Management....................................53-56
Documentation...........................................................57-60
Application and Other Explanatory Material
Scope of this ASQM......................................................A1-A2
The Firm’s System of Quality Management......................................A3-A5
Authority of this ASQM...............................................A6-Aus A9.1
Definitions............................................................A10-A28
Applying, and Complying with, Relevant Requirements...............................A29
System of Quality Management.............................................A30-A38
The Firm’s Risk Assessment Process.........................................A39-A54
Governance and Leadership...............................................A55-A61
Relevant Ethical Requirements.............................................A62-A66
Acceptance and Continuance of Client Relationships and Specific Engagements.........A67-A74
Engagement Performance.................................................A75-A85
Resources...........................................................A86-A108
Information and Communication..........................................A109-A115
Specified Responses...................................................A116-A137
Monitoring and Remediation Process.......................................A138-A174
Network Requirements or Network Services..................................A175-A186
Evaluating the System of Quality Management................................A187-A201
Documentation.......................................................A202-A206
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
| Auditing and Assurance Standards BoardPhone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA |
|---|
© 2025 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).
Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Director – National, 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 Management 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 Management. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Quality Management 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 Director – National, 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.
ISSN 1833-4393
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON QUALITY MANAGEMENT
Paragraphs
Application............................................................Aus 0.1
Operative Date.........................................................Aus 0.2
Introduction
Scope of this Auditing Standard.................................................1-5
The Firm’s System of Quality Management........................................6-11
Authority of this ASQM.......................................................12
Effective Date..............................................................13
Objective...............................................................14-15
Definitions.........................................................16-Aus 16.8
Requirements
Applying, and Complying with, Relevant Requirements..............................17-18
System of Quality Management...............................................19-22
The Firm’s Risk Assessment Process...........................................23-27
Governance and Leadership....................................................28
Relevant Ethical Requirements..................................................29
Acceptance and Continuance of Client Relationships and Specific Engagements...............30
Engagement Performance......................................................31
Resources.................................................................32
Information and Communication.................................................33
Specified Responses..........................................................34
Monitoring and Remediation Process...........................................35-47
Network Requirements or Network Services......................................48-52
Evaluating the System of Quality Management....................................53-56
Documentation...........................................................57-60
Application and Other Explanatory Material
Scope of this ASQM......................................................A1-A2
The Firm’s System of Quality Management......................................A3-A5
Authority of this ASQM...............................................A6-Aus A9.1
Definitions............................................................A10-A28
Applying, and Complying with, Relevant Requirements...............................A29
System of Quality Management.............................................A30-A38
The Firm’s Risk Assessment Process.........................................A39-A54
Governance and Leadership...............................................A55-A61
Relevant Ethical Requirements.............................................A62-A66
Acceptance and Continuance of Client Relationships and Specific Engagements.........A67-A74
Engagement Performance.................................................A75-A85
Resources...........................................................A86-A108
Information and Communication..........................................A109-A115
Specified Responses...................................................A116-A137
Monitoring and Remediation Process.......................................A138-A174
Network Requirements or Network Services..................................A175-A186
Evaluating the System of Quality Management................................A187-A201
Documentation.......................................................A202-A206
This compilation takes into account amendments made up to and including 28 January 2025 and was prepared on 12 February 2025 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 ASQM 1 (March 2021) as amended by other Auditing Standards which are listed in the Table below.
| Standard | Date made | Operative Date |
|---|---|---|
| ASQM 1 [A] | 10 March 2021 | financial reporting periods commencing on or after 15 December 2022 |
| ASA 2022-1 [B] | 27 April 2022 | financial reporting periods commencing on or after 15 December 2023 |
| ASA 2025-2 [C] | 28 January 2025 | from 1 January 2025 |
Legislation History
| Standard | Registration Number | Registration Date | Commencement Date |
|---|---|---|---|
| ASQM 1 | F2021L00415 | 6 April 2021 | 7 April 2021 |
| ASA 2022-1 | F2022L00712 | 19 May 2022 | 14 December 2023 |
| ASA 2025-2 | F2025L00108 | 11 February 2025 | 12 February 2025 |
| Paragraph affected | How affected | By … [paragraph] |
|---|---|---|
| Footnote 17 in A96.1 | Amended | ASA 2022-1 [9] |
| A112 | Amended | ASA 2022-1 [10] |
| Aus 0.1 | Amended | ASA 2025-2 [8] |
| Aus 4.1 | Amended | ASA 2025-2 [9] |
| Aus 4.1Footnote * | Deleted | ASA 2025-2 [9] |
| Aus 16.7 | Amended | ASA 2025-2 [10] |
| Aus 16.8 | Amended | ASA 2025-2 [11] |
| Aus 16.9 | Addition | ASA 2025-2 [12] |
| A1 | Amended | ASA 2025-2 [13] |
| A1Footnotes 7 and 8 | Addition | ASA 2025-2 [13] |
| Renumbering of footnotes | Amended | ASA 2025-2 [14] |
| A2 | Amended | ASA 2025-2 [15] |
| A22 | Amended | ASA 2025-2 [16] |
| A23 | Amended | ASA 2025-2 [17] |
| A62 | Amended | ASA 2025-2 [18] |
| A83 | Amended | ASA 2025-2 [19] |
| A85 | Amended | ASA 2025-2 [20] |
Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (as amended to 28 January 2025) is set out in paragraphs Aus 0.1 to A206.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied.
Conformity with International Standards on Quality Management
This Auditing Standard conforms with International Standard on Quality Management ISQM 1 Quality Management for Firms that Performs Audits or Reviews of Financial Statements, or Other Assurance or 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, or amended from this Auditing Standard (and do not appear / appear differently in/from the text of the equivalent ISQM 1) are identified with the prefix “Aus”.
The following introductory paragraphs and definitions are additional to or have been amended from ISQM 1:
| Paragraph | Summary of Change |
|---|---|
| Aus 4.1 | Replaces ISQM 1 introductory paragraph 4, to introduce ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. |
| Aus 4.2 | Additional to ISQM 1 to serve as a reminder that it is the responsibility of the firm to ensure compliance with all relevant legal, regulatory or professional obligations. |
| Aus 10.1 | Replaces ISQM 1 paragraph 10 scalability, as the example used in ISQM 1 references Compilation Engagements. The AUASB does not issue a Compilation Engagement standard. |
| Aus 16.1-Aus16.2 and 16.5 | Additional to ISQM 1, to include definitions of ‘Assurance engagement’, ‘Assurance practitioner’ and ‘Other financial information’, within the legislative instrument of ASQM 1. |
| Aus 16.3 | Additional to ISQM 1 to include definition of ‘Date of report’, to represent current Australian principles and practices of dating reports. |
| Aus 16.4 | Replaces ISQM 1 paragraph 16(f) definition of ‘Engagement team’, to remove the reference to direct assistance of internal audit which is prohibited in Australia, consistent with ASA 610 Using the Work of Internal Auditors. |
| Aus 16.5 | Additional to ISQM 1, to include the definition of ‘Other financial information’. Consistent with ASA 100 Preamble to AUASB Standards, although Auditing Standards are written mainly in the context of an audit of a financial report, they apply also, as appropriate, to the audit of other financial information. |
| Aus 16.6 | Replaces ISQM 1 paragraph 16(m) definition of ‘Partner’, which references the term ‘professional services engagements’. This term is not defined within Australia and has been replaced with the words audit, review, other assurance engagement or related services engagement. |
| Aus 16.7 | Replaces ISQM paragraph 16(p) definition of ‘Professional standards’. The AUASB Preface defines the term AUASB Standards. |
| Aus 16.8 | Replaces ISQM 1 paragraph 16(t) definition of ‘Relevant ethical requirements’. Relevant ethical requirements are defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. |
The following application and other explanatory material is additional to or amended from ISQM 1:
| Paragraph | Summary of Change |
|---|---|
| Aus A9.1 | Replaces ISQM 1 paragraph A9 Glossary of terms to remove reference to the IAASB Handbook. |
| Aus A96.1 | Replaces ISQM 1 paragraph A96 to remove the reference to direct assistance of internal audit which is prohibited in Australia, consistent with ASA 610 Using the Work of Internal Auditors. |
This Auditing Standard incorporates terminology and definitions used in Australia.
Compliance with this Auditing Standard enables compliance with ISQM 1.
This compilation takes into account amendments made up to and including 28 January 2025 and was prepared on 12 February 2025 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 ASQM 1 (March 2021) as amended by other Auditing Standards which are listed in the Table below.
| Standard | Date made | Operative Date |
|---|---|---|
| ASQM 1 [A] | 10 March 2021 | financial reporting periods commencing on or after 15 December 2022 |
| ASA 2022-1 [B] | 27 April 2022 | financial reporting periods commencing on or after 15 December 2023 |
| ASA 2025-2 [C] | 28 January 2025 | from 1 January 2025 |
Legislation History
| Standard | Registration Number | Registration Date | Commencement Date |
|---|---|---|---|
| ASQM 1 | F2021L00415 | 6 April 2021 | 7 April 2021 |
| ASA 2022-1 | F2022L00712 | 19 May 2022 | 14 December 2023 |
| ASA 2025-2 | F2025L00108 | 11 February 2025 | 12 February 2025 |
| Paragraph affected | How affected | By … [paragraph] |
|---|---|---|
| Footnote 17 in A96.1 | Amended | ASA 2022-1 [9] |
| A112 | Amended | ASA 2022-1 [10] |
| Aus 0.1 | Amended | ASA 2025-2 [8] |
| Aus 4.1 | Amended | ASA 2025-2 [9] |
| Aus 4.1Footnote * | Deleted | ASA 2025-2 [9] |
| Aus 16.7 | Amended | ASA 2025-2 [10] |
| Aus 16.8 | Amended | ASA 2025-2 [11] |
| Aus 16.9 | Addition | ASA 2025-2 [12] |
| A1 | Amended | ASA 2025-2 [13] |
| A1Footnotes 7 and 8 | Addition | ASA 2025-2 [13] |
| Renumbering of footnotes | Amended | ASA 2025-2 [14] |
| A2 | Amended | ASA 2025-2 [15] |
| A22 | Amended | ASA 2025-2 [16] |
| A23 | Amended | ASA 2025-2 [17] |
| A62 | Amended | ASA 2025-2 [18] |
| A83 | Amended | ASA 2025-2 [19] |
| A85 | Amended | ASA 2025-2 [20] |
Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (as amended to 28 January 2025) is set out in paragraphs Aus 0.1 to A206.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied.
Conformity with International Standards on Quality Management
This Auditing Standard conforms with International Standard on Quality Management ISQM 1 Quality Management for Firms that Performs Audits or Reviews of Financial Statements, or Other Assurance or 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, or amended from this Auditing Standard (and do not appear / appear differently in/from the text of the equivalent ISQM 1) are identified with the prefix “Aus”.
The following introductory paragraphs and definitions are additional to or have been amended from ISQM 1:
| Paragraph | Summary of Change |
|---|---|
| Aus 4.1 | Replaces ISQM 1 introductory paragraph 4, to introduce ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. |
| Aus 4.2 | Additional to ISQM 1 to serve as a reminder that it is the responsibility of the firm to ensure compliance with all relevant legal, regulatory or professional obligations. |
| Aus 10.1 | Replaces ISQM 1 paragraph 10 scalability, as the example used in ISQM 1 references Compilation Engagements. The AUASB does not issue a Compilation Engagement standard. |
| Aus 16.1-Aus16.2 and 16.5 | Additional to ISQM 1, to include definitions of ‘Assurance engagement’, ‘Assurance practitioner’ and ‘Other financial information’, within the legislative instrument of ASQM 1. |
| Aus 16.3 | Additional to ISQM 1 to include definition of ‘Date of report’, to represent current Australian principles and practices of dating reports. |
| Aus 16.4 | Replaces ISQM 1 paragraph 16(f) definition of ‘Engagement team’, to remove the reference to direct assistance of internal audit which is prohibited in Australia, consistent with ASA 610 Using the Work of Internal Auditors. |
| Aus 16.5 | Additional to ISQM 1, to include the definition of ‘Other financial information’. Consistent with ASA 100 Preamble to AUASB Standards, although Auditing Standards are written mainly in the context of an audit of a financial report, they apply also, as appropriate, to the audit of other financial information. |
| Aus 16.6 | Replaces ISQM 1 paragraph 16(m) definition of ‘Partner’, which references the term ‘professional services engagements’. This term is not defined within Australia and has been replaced with the words audit, review, other assurance engagement or related services engagement. |
| Aus 16.7 | Replaces ISQM paragraph 16(p) definition of ‘Professional standards’. The AUASB Preface defines the term AUASB Standards. |
| Aus 16.8 | Replaces ISQM 1 paragraph 16(t) definition of ‘Relevant ethical requirements’. Relevant ethical requirements are defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. |
The following application and other explanatory material is additional to or amended from ISQM 1:
| Paragraph | Summary of Change |
|---|---|
| Aus A9.1 | Replaces ISQM 1 paragraph A9 Glossary of terms to remove reference to the IAASB Handbook. |
| Aus A96.1 | Replaces ISQM 1 paragraph A96 to remove the reference to direct assistance of internal audit which is prohibited in Australia, consistent with ASA 610 Using the Work of Internal Auditors. |
This Auditing Standard incorporates terminology and definitions used in Australia.
Compliance with this Auditing Standard enables compliance with ISQM 1.
Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (as amended to 28 January 2025) is set out in paragraphs Aus 0.1 to A206.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
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
| Auditing and Assurance Standards BoardPhone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA |
|---|
© 2025 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).
Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Director – National, 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 Management 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 Management. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Quality Management 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 Director – National, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to . Any decision to approve a request may also require the agreement of IFAC.
ISSN 1833-4393
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON QUALITY MANAGEMENT
Paragraphs
Application............................................................Aus 0.1
Operative Date.........................................................Aus 0.2
Introduction
Scope of this Auditing Standard.................................................1-5
The Firm’s System of Quality Management........................................6-11
Authority of this ASQM.......................................................12
Effective Date..............................................................13
Objective...............................................................14-15
Definitions.........................................................16-Aus 16.8
Requirements
Applying, and Complying with, Relevant Requirements..............................17-18
System of Quality Management...............................................19-22
The Firm’s Risk Assessment Process...........................................23-27
Governance and Leadership....................................................28
Relevant Ethical Requirements..................................................29
Acceptance and Continuance of Client Relationships and Specific Engagements...............30
Engagement Performance......................................................31
Resources.................................................................32
Information and Communication.................................................33
Specified Responses..........................................................34
Monitoring and Remediation Process...........................................35-47
Network Requirements or Network Services......................................48-52
Evaluating the System of Quality Management....................................53-56
Documentation...........................................................57-60
Application and Other Explanatory Material
Scope of this ASQM......................................................A1-A2
The Firm’s System of Quality Management......................................A3-A5
Authority of this ASQM...............................................A6-Aus A9.1
Definitions............................................................A10-A28
Applying, and Complying with, Relevant Requirements...............................A29
System of Quality Management.............................................A30-A38
The Firm’s Risk Assessment Process.........................................A39-A54
Governance and Leadership...............................................A55-A61
Relevant Ethical Requirements.............................................A62-A66
Acceptance and Continuance of Client Relationships and Specific Engagements.........A67-A74
Engagement Performance.................................................A75-A85
Resources...........................................................A86-A108
Information and Communication..........................................A109-A115
Specified Responses...................................................A116-A137
Monitoring and Remediation Process.......................................A138-A174
Network Requirements or Network Services..................................A175-A186
Evaluating the System of Quality Management................................A187-A201
Documentation.......................................................A202-A206
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
| Auditing and Assurance Standards BoardPhone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA |
|---|
© 2025 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).
Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Director – National, 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 Management 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 Management. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Quality Management 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 Director – National, 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.
ISSN 1833-4393
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON QUALITY MANAGEMENT
Paragraphs
Application............................................................Aus 0.1
Operative Date.........................................................Aus 0.2
Introduction
Scope of this Auditing Standard.................................................1-5
The Firm’s System of Quality Management........................................6-11
Authority of this ASQM.......................................................12
Effective Date..............................................................13
Objective...............................................................14-15
Definitions.........................................................16-Aus 16.8
Requirements
Applying, and Complying with, Relevant Requirements..............................17-18
System of Quality Management...............................................19-22
The Firm’s Risk Assessment Process...........................................23-27
Governance and Leadership....................................................28
Relevant Ethical Requirements..................................................29
Acceptance and Continuance of Client Relationships and Specific Engagements...............30
Engagement Performance......................................................31
Resources.................................................................32
Information and Communication.................................................33
Specified Responses..........................................................34
Monitoring and Remediation Process...........................................35-47
Network Requirements or Network Services......................................48-52
Evaluating the System of Quality Management....................................53-56
Documentation...........................................................57-60
Application and Other Explanatory Material
Scope of this ASQM......................................................A1-A2
The Firm’s System of Quality Management......................................A3-A5
Authority of this ASQM...............................................A6-Aus A9.1
Definitions............................................................A10-A28
Applying, and Complying with, Relevant Requirements...............................A29
System of Quality Management.............................................A30-A38
The Firm’s Risk Assessment Process.........................................A39-A54
Governance and Leadership...............................................A55-A61
Relevant Ethical Requirements.............................................A62-A66
Acceptance and Continuance of Client Relationships and Specific Engagements.........A67-A74
Engagement Performance.................................................A75-A85
Resources...........................................................A86-A108
Information and Communication..........................................A109-A115
Specified Responses...................................................A116-A137
Monitoring and Remediation Process.......................................A138-A174
Network Requirements or Network Services..................................A175-A186
Evaluating the System of Quality Management................................A187-A201
Documentation.......................................................A202-A206
This compilation takes into account amendments made up to and including 28 January 2025 and was prepared on 12 February 2025 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 ASQM 1 (March 2021) as amended by other Auditing Standards which are listed in the Table below.
| Standard | Date made | Operative Date |
|---|---|---|
| ASQM 1 [A] | 10 March 2021 | financial reporting periods commencing on or after 15 December 2022 |
| ASA 2022-1 [B] | 27 April 2022 | financial reporting periods commencing on or after 15 December 2023 |
| ASA 2025-2 [C] | 28 January 2025 | from 1 January 2025 |
Legislation History
| Standard | Registration Number | Registration Date | Commencement Date |
|---|---|---|---|
| ASQM 1 | F2021L00415 | 6 April 2021 | 7 April 2021 |
| ASA 2022-1 | F2022L00712 | 19 May 2022 | 14 December 2023 |
| ASA 2025-2 | F2025L00108 | 11 February 2025 | 12 February 2025 |
| Paragraph affected | How affected | By … [paragraph] |
|---|---|---|
| Footnote 17 in A96.1 | Amended | ASA 2022-1 [9] |
| A112 | Amended | ASA 2022-1 [10] |
| Aus 0.1 | Amended | ASA 2025-2 [8] |
| Aus 4.1 | Amended | ASA 2025-2 [9] |
| Aus 4.1Footnote * | Deleted | ASA 2025-2 [9] |
| Aus 16.7 | Amended | ASA 2025-2 [10] |
| Aus 16.8 | Amended | ASA 2025-2 [11] |
| Aus 16.9 | Addition | ASA 2025-2 [12] |
| A1 | Amended | ASA 2025-2 [13] |
| A1Footnotes 7 and 8 | Addition | ASA 2025-2 [13] |
| Renumbering of footnotes | Amended | ASA 2025-2 [14] |
| A2 | Amended | ASA 2025-2 [15] |
| A22 | Amended | ASA 2025-2 [16] |
| A23 | Amended | ASA 2025-2 [17] |
| A62 | Amended | ASA 2025-2 [18] |
| A83 | Amended | ASA 2025-2 [19] |
| A85 | Amended | ASA 2025-2 [20] |
Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (as amended to 28 January 2025) is set out in paragraphs Aus 0.1 to A206.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied.
Conformity with International Standards on Quality Management
This Auditing Standard conforms with International Standard on Quality Management ISQM 1 Quality Management for
This is an opening excerpt, not the complete document.