CTHIn ForceLegislation
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
Relevant Ethical Requirements (Ref: ParaRelevant Ethical Requirements (Ref: Para. Aus 16.8, 29)
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Relevant Ethical Requirements (Ref: Para. Aus 16.8, 29)
- The 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 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 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.
- In some cases, the matters addressed by the firm in its system of quality management may be more specific than, or additional to, the provisions of relevant ethical requirements.
| Examples of matters that a firm may include in its system of quality management that are more specific than, or additional to, the provisions of relevant ethical requirements The firm prohibits the acceptance of gifts and hospitality from a client, even if the value is trivial and inconsequential. The firm sets rotation periods for all engagement partners, including those performing other assurance or related services engagements, and extends the rotation periods to all senior engagement team members. |
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- Other components may affect or relate to the relevant ethical requirements component.
| Examples of relationships between the relevant ethical requirements component and other components The information and communication component may address the communication of various matters related to relevant ethical requirements, including:o The firm communicating the independence requirements to all personnel and others subject to independence requirements.o Personnel and engagement teams communicating relevant information to the firm without fear of reprisals, such as situations that may create threats to independence, or breaches of relevant ethical requirements. As part of the resources component, the firm may:o Assign individuals to manage and monitor compliance with relevant ethical requirements or to provide consultation on matters related to relevant ethical requirements.o Use IT applications to monitor compliance with relevant ethical requirements, including recording and maintaining information about independence. |
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