Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p10
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 28483–31732

on Assurance Engagements; and

             (d)                Standards on Related Services.

(q)                Quality objectives – The desired outcomes in relation to the components of the system of quality management to be achieved by the firm.

(r)                 Quality risk – A risk that has a reasonable possibility of:

(i)                 Occurring; and

(ii)               Individually, or in combination with other risks, adversely affecting the achievement of one or more quality objectives.

(s)                Reasonable assurance – In the context of the ASQMs, a high, but not absolute, level of assurance.

(t)                 [Deleted by the AUASB. Refer Aus 16.8]

Aus 16.8 Relevant ethical requirements means relevant ethical requirements as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.  (Ref: Para. A22-A24; A62)

(u)                Response (in relation to a system of quality management) – Policies or procedures designed and implemented by the firm to address one or more quality risk(s): (Ref: Para. A25–A27, A50)

(i)                 Policies are statements of what should, or should not, be done to address a quality risk(s). Such statements may be documented, explicitly stated in communications or implied through actions and decisions.

(ii)               Procedures are actions to implement policies.

(v)                Service provider (in the context of this ASQM) – An individual or organisation external to the firm that provides a resource that is used in the system of quality management or in the performance of engagements. Service providers exclude the firm's network, other network firms or other structures or organisations in the network. (Ref: Para. A28, A105)

(w)              Staff – Professionals, other than partners, including any experts the firm employs.

(x)                System of quality management – A system designed, implemented and operated by a firm to provide the firm with reasonable assurance that:

(i)                 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

(ii)               Engagement reports issued by the firm or engagement partners are appropriate in the circumstances.

Requirements

Applying, and Complying with, Relevant Requirements

17.               The firm shall comply with each requirement of this ASQM unless the requirement is not relevant to the firm because of the nature and circumstances of the firm or its engagements. (Ref: Para. A29)

18.               The individual(s) assigned ultimate responsibility and accountability for the firm's system of quality management, and the individual(s) assigned operational responsibility for the firm's system of quality management shall have an understanding of this ASQM, including the application and other explanatory material, to understand the objective of this ASQM and to apply its requirements properly.

System of Quality Management

19.               The firm shall design, implement and operate a system of quality management. In doing so, the