Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p7
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 7/31)
Character Range: 26053–29454

Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and

                    * ASA 810 Engagements to Report on Summary Financial Statements.

(b) Standards on Review Engagements;

(c) Standards on Assurance Engagements; and

(d) Standards on Related Services.

(p)                Reasonable assurance means a high, but not absolute, level of assurance.

(q)                [Deleted by the AUASB.  Refer Aus 12.12]

Aus 12.12 Relevant ethical requirements means relevant ethical requirements as defined in ASA 102.

(r)                 Staff means professionals, other than partners, including any experts the firm employs.

(s)                [Deleted by the AUASB.  Refer Aus 12.13]

Aus 12.13 Suitably qualified external person means an individual outside the firm with the competence and capabilities to act as an engagement partner.  For example:

               * a partner of another firm, or

               * a member (with appropriate experience) of a professional accountancy body[*] whose members may perform audits and reviews of financial reports and other financial information, other assurance engagements or related services engagements, or

               * a member (with appropriate experience) of an organisation that provides relevant quality control services.

Requirements

Applying, and Complying with, Relevant Requirements

13.               Personnel within the firm responsible for establishing and maintaining the firm's system of quality control shall have an understanding of the entire text of this Standard, including its application and other explanatory material, to understand its objective and to apply its requirements properly.

14.               The firm shall comply with each requirement of this Standard unless, in the circumstances of the firm, the requirement is not relevant to the services provided in respect of audits and reviews of financial reports, audits and reviews of other financial information, other assurance engagements and related services engagements.  (Ref: Para. A1‑Aus A1.1)

15.               The requirements are designed to enable the firm to achieve the objective stated in this Standard.  The proper application of the requirements is therefore expected to provide a sufficient basis for the achievement of the objective.  However, because circumstances vary widely and all such circumstances cannot be anticipated, the firm shall consider whether there are particular matters or circumstances that require the firm to establish policies and procedures in addition to those required by this Standard to meet the stated objective.

Elements of a System of Quality Control

16.               The firm shall establish and maintain a system of quality control that includes policies and procedures that address each of the following elements:

(a)                Leadership responsibilities for quality within the firm.

(b)                Relevant ethical requirements.

(c)                Acceptance and continuance of client relationships and specific engagements.

(d)                Human resources.

(e)                Engagement performance.

(f)                 Monitoring.

17.               The firm shall document its policies and procedures and communicate them to the firm's personnel.  (Ref: Para. A2‑A3)

Leadership Responsibilities for Quality within the Firm

18.               The