Section Documentation - 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 - Documentation

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Documentation

The firm shall prepare documentation of its system of quality management that is sufficient to: (Ref: Para. A202–A204)
1. Support a consistent understanding of the system of quality management by personnel, including an understanding of their roles and responsibilities with respect to the system of quality management and the performance of engagements;
2. Support the consistent implementation and operation of the responses; and
3. Provide evidence of the design, implementation and operation of the responses, to support the evaluation of the system of quality management by the individual(s) assigned ultimate responsibility and accountability for the system of quality management.
In preparing documentation, the firm shall include:
1. The identification of the individual(s) assigned ultimate responsibility and accountability for the system of quality management and operational responsibility for the system of quality management;
2. The firm’s quality objectives and quality risks; (Ref: Para. A205)
3. A description of the responses and how the firm’s responses address the quality risks;
4. Regarding the monitoring and remediation process:
  1. Evidence of the monitoring activities performed;
  2. The evaluation of findings, and identified deficiencies and their related root cause(s);
  3. Remedial actions to address identified deficiencies and the evaluation of the design and implementation of such remedial actions; and
  4. Communications about monitoring and remediation; and
5. The basis for the conclusion reached pursuant to paragraph 54.
The firm shall document the matters in paragraph 58 as they relate to network requirements or network services and the evaluation of the network requirements or network services in accordance with paragraph 49(b). (Ref: Para. A206)
The firm shall establish a period of time for the retention of documentation for the system of quality management that is sufficient to enable the firm to monitor the design, implementation and operation of the firm’s system of quality management, or for a longer period if required by law or regulation.

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