Firm-level Quality Management (Ref: ParaFirm-level Quality Management (Ref: Para. 30)

Firm-level Quality Management (Ref: Para. 30)

1. This ASSA has been written in the context of a range of measures taken to support the quality of sustainability assurance engagements. Such measures include:

• Competency requirements, such as education and experience, and ongoing continuing professional development as well as life-long learning requirements.
• A system of quality management implemented across the firm, i.e., ASQM 1, or professional requirements, or requirements in law or regulation, that are at least as demanding.
• When applicable, in accordance with ASQM 1, performance of engagement quality reviews in accordance with ASQM 2. [3]
• A comprehensive set of ethical requirements, including detailed independence requirements, founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

1. ASQM 1 deals with the firm’s responsibilities to design, implement and operate a system of quality management for assurance engagements. It sets out the responsibilities of the firm for establishing quality objectives, identifying and assessing risks to the achievement of the quality objectives, and designing and implementing responses to address such risks, including certain specified responses. The specified responses in ASQM 1 include the firm’s responsibility to establish policies or procedures addressing engagements that are required to be subject to engagement quality reviews. ASQM 2 deals with the appointment and eligibility of the engagement quality reviewer, and the performance and documentation of the engagement quality review.
2. A system of quality management addresses the following eight components:
   1. The firm’s risk assessment process;
   2. Governance and leadership;
   3. Relevant ethical requirements;
   4. Acceptance and continuance of client relationships and specific engagements;
   5. Engagement performance;
   6. Resources;
   7. Information and communication; and
   8. The monitoring and remediation process.

Firms or legislative or other requirements may use different terminology or frameworks to describe the components of the system of quality management.

1. A firm’s system of quality management includes establishing a monitoring and remediation process designed to:

• Provide the firm with relevant, reliable and timely information about the design, implementation, and operation of the system of quality management.
• Take appropriate actions to respond to identified deficiencies such that deficiencies are remediated by the firm on a timely basis.