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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Scope of this Auditing Standard
- This Australian Standard on Quality Management (ASQM) deals with a firm’s responsibilities to design, implement and operate a system of quality management for audits or reviews of financial reports and other financial information, or other assurance or related services engagements.
- Engagement quality reviews form part of the firm’s system of quality management and:
- This ASQM deals with the firm’s responsibility to establish policies or procedures addressing engagements that are required to be subject to engagement quality reviews.
- ASQM 2[1] deals with the appointment and eligibility of the engagement quality reviewer, and the performance and documentation of the engagement quality review.
- Other pronouncements of the Australian Auditing and Assurance Standards Board (AUASB):
- Are premised on the basis that the firm is subject to the ASQMs or to national requirements that are at least as demanding;[2] and
- Include requirements for engagement partners and other engagement team members regarding quality management at the engagement level. For example, ASA 220 deals with the specific responsibilities of the auditor regarding quality management at the engagement level for an audit of a financial report and the related responsibilities of the engagement partner. (Ref: Para. A1)
- [Deleted by the AUASB. Refer Aus 4.1]
Aus 4.1 This ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8. 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).
Aus 4.2 This ASQM does not address the responsibilities of the firm that may exist in legislation, regulation or otherwise in connection with, for example, independence or other assurance related requirements of the Corporations Act 2001.
- This ASQM applies to all firms performing audits or reviews of financial reports and other financial information, or other assurance or related services engagements (i.e., if the firm performs any of these engagements, this ASQM applies and the system of quality management that is established in accordance with the requirements of this ASQM enables the consistent performance by the firm of all such engagements).