Section Governance and Leadership - 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 - Governance and Leadership | Zoe
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
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The firm shall establish the following quality objectives that address the firm’s governance and leadership, which establishes the environment that supports the system of quality management:
The firm demonstrates a commitment to quality through a culture that exists throughout the firm, which recognises and reinforces: (Ref: Para. A55–A56)
The firm’s role in serving the public interest by consistently performing quality engagements;
The importance of professional ethics, values and attitudes;
The responsibility of all personnel for quality relating to the performance of engagements or activities within the system of quality management, and their expected behaviour; and
The importance of quality in the firm’s strategic decisions and actions, including the firm’s financial and operational priorities.
Leadership is responsible and accountable for quality. (Ref: Para. A57)
Leadership demonstrates a commitment to quality through their actions and behaviours. (Ref: Para. A58)
The organisational structure and assignment of roles, responsibilities and authority is appropriate to enable the design, implementation and operation of the firm’s system of quality management. (Ref: Para. A32, A33, A35, A59)
Resource needs, including financial resources, are planned for and resources are obtained, allocated or assigned in a manner that is consistent with the firm’s commitment to quality. (Ref: Para. A60–A61)