Document ID: chunk:federal_register_of_legislation:F2025L00106:body:0:p8
Version: federal_register_of_legislation:F2025L00106
Segment Type: other
Provision Reference: 
Character Range: 22239–25538

the proper conduct of engagements that fall within the scope of AUASB Standards.  This is because interpretation of relevant ethical requirements and relevant AUASB Standards and the informed decisions required throughout the engagement cannot be made without the application of relevant training, knowledge and experience to the facts and circumstances.[25]

Ethical Principles and Quality Management Standards

     1.          Compliance with ethical principles, including independence requirements, and quality management within firms that perform engagements to which AUASB Standards apply, are widely recognised as being in the public interest and an integral part of a high-quality engagement.[26]

Relevant Ethical Requirements

     1.          References to compliance with relevant ethical requirements are included in certain requirements and explanatory material paragraphs in AUASB Standards.  AUASB Standards are to be read in conjunction with relevant ethical requirements, as defined in ASA 102[27] or ASSA 5000.   Law, regulation or relevant ethical requirements may establish responsibilities for the assurance practitioner beyond those described in AUASB Standards.

Quality Management Standards

     1.          ASQM 1 deals with a firm's responsibilities to design, implement and operate a system of quality management for audits or reviews of financial statements, or other assurance or related services engagements.

     2.          Engagement quality reviews form part of the firm's system of quality management and:

             1.                 ASQM 1 deals with the firm's responsibility to establish policies or procedures addressing engagements that are required to be subject to engagement quality reviews.

             1.                 ASQM 2 deals with the appointment and eligibility of the engagement quality reviewer, and the performance and documentation of the engagement quality review.

     3.          AUASB Standards are premised on the basis that a firm is subject to the ASQMs, and include requirements regarding quality management at the engagement level.[28]

Amendments to AUASB Standards

     1.          AUASB Standards may require amendment for a variety of reasons, such as consequential and conforming amendments required as a result of changes made to other AUASB Standards.

Amendment of Standards made under Section 336 of the Corporations Act

     1.          As standards made under section 336 of the Corporations Act are legislative instruments, they can only be amended by another legislative instrument. An "Amending Standard" is a legislative instrument made by the AUASB for the sole purpose of amending another legislative instrument (referred to as the "principal standard"). Amending Standards provide an efficient way of processing amendments which affect a number of standards without reissuing all the standards affected.

Compilations

     1.          The compiled version of a standard reflects the content of a standard, considering all amendments that have become effective since the principal standard was originally made.[29] Compilations are a requirement of the Legislation Act 2003 and are required to be lodged with the Office of Parliamentary Counsel for registration on the Federal Register of Legislation.