Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p7
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 19580–22828

management and supporting documentation, than a firm that performs only reviews of financial reports or agreed-upon procedures engagements.

Networks and Service Providers

11.               This ASQM addresses the firm's responsibilities when the firm:

(a)                Belongs to a network, and the firm complies with network requirements or uses network services in the system of quality management or in the performance of engagements; or

(b)                Uses resources from a service provider in the system of quality management or in the performance of engagements.

Even when the firm complies with network requirements or uses network services or resources from a service provider, the firm is responsible for its system of quality management.

Authority of this ASQM

12.               Paragraph 14 contains the objective of the firm in following this ASQM. This ASQM contains: (Ref: Para. A6)

(a)                Requirements designed to enable the firm to meet the objective in paragraph 14; (Ref: Para. A7)

(b)                Related guidance in the form of application and other explanatory material; (Ref: Para. A8)

(c)                Introductory material that provides context relevant to a proper understanding of this ASQM; and

(d)                Definitions. (Ref: Para. A9)

Effective Date

13.               [Deleted by the AUASB.  Refer Aus 0.2]

Objective

14.               The objective of the firm is to design, implement and operate a system of quality management for audits or reviews of financial reports and other financial information, 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.

15.               The public interest is served by the consistent performance of quality engagements. The design, implementation and operation of the system of quality management enables the consistent performance of quality engagements by providing the firm with reasonable assurance that the objectives of the system of quality management, stated in paragraph 14(a) and (b), are achieved. Quality engagements are achieved through planning and performing engagements and reporting on them in accordance with AUASB standards and applicable legal and regulatory requirements. Achieving the objectives of those standards and complying with the requirements of applicable law or regulation involves exercising professional judgement and, when applicable to the type of engagement, exercising professional scepticism.

Definitions

16.               For the purposes of this ASQM, the following terms have the meanings attributed below:

Aus 16.1 Assurance engagement means an engagement in which an assurance practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users, other than the responsible party, about the outcome of the evaluation