Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p22
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 65526–68630

54.

59.               The firm shall document the matters in paragraph 58 as they relate to network requirements or network services and the evaluation of the network requirements or network services in accordance with paragraph 49(b). (Ref: Para. A206)

60.               The firm shall establish a period of time for the retention of documentation for the system of quality management that is sufficient to enable the firm to monitor the design, implementation and operation of the firm's system of quality management, or for a longer period if required by law or regulation.

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Application and Other Explanatory Material

Scope of this ASQM (Ref: Para. 3–4)

A1.             Other pronouncements of the AUASB, including ASRE 2400[5] and ASAE 3000,[6] also establish requirements for the engagement partner for the management of quality at the engagement level.

A2.             The APESB Code[7] contains requirements and application material for members that enable members to meet their responsibility to act in the public interest. As indicated in paragraph 15, in the context of engagement performance as described in this ASQM, the consistent performance of quality engagements forms part of the member's responsibility to act in the public interest.

The Firm's System of Quality Management (Ref: Para. 6–9)

A3.             The firm may use different terminology or frameworks to describe the components of its system of quality management.

A4.             Examples of the interconnected nature of the components include the following:

           * The firm's risk assessment process sets out the process the firm is required to follow in implementing a risk-based approach across the system of quality management.

           * The governance and leadership component establishes the environment that supports the system of quality management.

           * The resources and information and communication components enable the design, implementation and operation of the system of quality management.

           * The monitoring and remediation process is a process designed to monitor the entire system of quality management. The results of the monitoring and remediation process provide information that is relevant to the firm's risk assessment process.

           * There may be relationships between specific matters, for example, certain aspects of relevant ethical requirements are relevant to accepting and continuing client relationships and specific engagements.

A5.             Reasonable assurance is obtained when the system of quality management reduces to an acceptably low level the risk that the objectives stated in paragraph 14(a) and (b) are not achieved. Reasonable assurance is not an absolute level of assurance, because there are inherent limitations of a system of quality management. Such limitations include that human judgement in decision making can be faulty and that breakdowns in a firm's system of quality management may occur, for example, due to human error or behaviour or failures in information technology (IT) applications.

Authority of