Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p16
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 16/31)
Character Range: 53366–56554

circumstances of a sole practitioner with no staff.  Requirements in this Standard such as those for policies and procedures for the assignment of appropriate personnel to the engagement team (see paragraph 31), for review responsibilities (see paragraph 33), and for the annual communication of the results of monitoring to assurance practitioners within the firm (see paragraph 53) are not relevant in the case of a sole practitioner where no staff are employed.

Considerations specific to Public Sector Entities

Aus A1.1 For assurance engagements conducted in the public sector by Auditors‑General pursuant to legislation, public sector auditors should have regard to the relevant public sector mandate and address any threats in that context.  Requirements relating to independence (paragraphs 21‑25), acceptance and continuance of client relationships and specific engagements (paragraphs 26‑28), and complaints and allegations (paragraphs 55‑56) may not be consistent with the Auditors‑General legislative mandate in all circumstances.

Elements of a System of Quality Control (Ref: Para. 17)

A2.             In general, communication of quality control policies and procedures to firm personnel includes a description of the quality control policies and procedures and the objectives they are designed to achieve, and the message that each individual has a personal responsibility for quality and is expected to comply with these policies and procedures.  Encouraging firm personnel to communicate their views or concerns on quality control matters recognises the importance of obtaining feedback on the firm's system of quality control.

Considerations Specific to Smaller Firms

A3.             Documentation and communication of policies and procedures for smaller firms may be less formal and less extensive than for larger firms.

Leadership Responsibilities for Quality within the Firm

Promoting an Internal Culture of Quality (Ref: Para. 18)

A4.             The firm's leadership and the examples it sets significantly influence the internal culture of the firm.  The promotion of a quality‑oriented internal culture depends on clear, consistent and frequent actions and messages from all levels of the firm's management that emphasise the firm's quality control policies and procedures, and the requirement to:

(a)                perform work that complies with AUASB Standards, relevant ethical requirements, and applicable legal and regulatory requirements; and

(b)                issue reports that are appropriate in the circumstances.

    Such actions and messages encourage a culture that recognises and rewards high quality work.  These actions and messages may be communicated by, but are not limited to, training seminars, meetings, formal or informal dialogue, mission statements, newsletters, or briefing memoranda.  They may be incorporated in the firm's internal documentation and training materials, and in partner and staff appraisal procedures such that they will support and reinforce the firm's view on the importance of quality and how, practically, it is to be achieved.

A5.             Of particular importance in promoting an internal culture