Document ID: chunk:federal_register_of_legislation:F2023C01116:body:0:p4
Version: federal_register_of_legislation:F2023C01116
Segment Type: other
Provision Reference: 
Character Range: 9487–12576

an engagement quality review is required to be performed in accordance with ASQM 1.[1] This ASQM is premised on the basis that the firm is subject to ASQM 1 or to national requirements that are at least as demanding.  This ASQM is to be read in conjunction with relevant ethical requirements.  Relevant ethical requirements are defined in ASA 102.[*] 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 2.2 This ASQM does not address the responsibilities of the assurance practitioner that may exist in legislation, regulation or otherwise in connection with, for example, independence or other assurance related requirements of the Corporations Act 2001.

3.                   An engagement quality review performed in accordance with this ASQM is a specified response that is designed and implemented by the firm in accordance with ASQM 1.[2] The performance of an engagement quality review is undertaken at the engagement level by the engagement quality reviewer on behalf of the firm.

Scalability

4.                   The nature, timing and extent of the engagement quality reviewer's procedures required by this ASQM vary depending on the nature and circumstances of the engagement or the entity. For example, the engagement quality reviewer's procedures would likely be less extensive for engagements involving fewer significant judgements made by the engagement team.

The Firm's System of Quality Management and Role of Engagement Quality Reviews

5.                   ASQM 1 establishes the firm's responsibilities for its system of quality management and requires the firm to design and implement responses to address the quality risks in a manner that is based on, and responsive to, the reasons for the assessments given to the quality risks.[3] The specified responses in ASQM 1 include establishing policies or procedures addressing engagement quality reviews in accordance with this ASQM.

6.                   The firm is responsible for designing, implementing and operating the system of quality management. Under ASQM 1, the objective of the firm is to design, implement and operate a system of quality management for audits or reviews of a financial report, or other assurance or related services engagements performed by the firm, that provides the firm with reasonable assurance that:

(a)                The firm and its personnel fulfill their responsibilities in accordance with AUASB standards and applicable legal and regulatory requirements, and conduct engagements in accordance with such standards and requirements; and

(b)                Engagement reports issued by the firm or engagement partners are appropriate in the circumstances.[4]

7.                   As explained in ASQM 1,[5] the public interest is served by the consistent performance of quality engagements. Quality engagements are achieved through planning and performing engagements and reporting on them in accordance with AUASB standards and applicable legal and