Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p13
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 36763–39791

quality review has been completed on or before the date of the auditor's report.

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Application and Other Explanatory Material

Scope of this ASA (Ref: Para. 1)

A1.             This ASA applies to all audits of  a financial report and other historical financial information, including audits of a group financial report. ASA 600[12] deals with special considerations that apply to an audit of  a group financial report and when component auditors are involved. ASA 600, adapted as necessary in the circumstances, may also be useful in an audit of  a financial report when the engagement team includes individuals from another firm. For example, ASA 600 may be useful when involving such an individual to attend a physical inventory count, inspect property, plant and equipment, or perform audit procedures at a shared service centre at a remote location.

The Firm's System of Quality Management and Role of Engagement Teams (Ref: Para. 2–9)

A2.             ASQM 1 deals with a firm's responsibilities for designing, implementing and operating its system of quality management.

A3.             Firms or national requirements may use different terminology or frameworks to describe the components of the system of quality management. National requirements that deal with the firm's responsibilities to design, implement and operate a system of quality management are at least as demanding as ASQM 1 when they address the requirements of ASQM 1 and impose obligations on the firm to achieve the objective of ASQM 1.

The Engagement Team's Responsibilities Relating to the Firm's System of Quality Management (Ref: Para. 4)

A4.             Quality management at the engagement level is supported by the firm's system of quality management and informed by the specific nature and circumstances of the audit engagement. In accordance with ASQM 1, the firm is responsible for communicating information enables the engagement team to understand and carry out their responsibilities relating to performing engagements. For example, such communications may cover policies or procedures to undertake consultations with designated individuals in certain situations involving complex technical or ethical matters, or to involve firm-designated experts in specific engagements to perform audit procedures related to particular matters (e.g., the firm may specify that firm-designated credit experts are to be involved in auditing expected credit loss allowances in audits of financial institutions).

A5.             Firm-level responses may include policies or procedures established by a network, or by other firms, structures or organisations within the same network (network requirements or network services are described further in ASQM 1 within the "Network Requirements or Network Services" section).[13] The requirements of this ASA are based on the premise that the firm is responsible for taking the necessary action to enable engagement teams to implement or use network requirements or network services on the audit