Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p12
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 34558–37897

1. The complexity and operating characteristics of the firm;

                   2. The strategic and operational decisions and actions, business processes and business model of the firm;

                   3. The characteristics and management style of leadership;

                   4. The resources of the firm, including the resources provided by service providers;

                   5. Law, regulation, AUASB standards and the environment in which the firm operates; and

                   6. In the case of a firm that belongs to a network, the nature and extent of the network requirements and network services, if any.

(ii)               With respect to the nature and circumstances of the engagements performed by the firm, those relating to:

                   1. The types of engagements performed by the firm and the reports to be issued; and

                   2. The types of entities for which such engagements are undertaken.

(b)                Take into account how, and the degree to which, the conditions, events, circumstances, actions or inactions in paragraph 25(a) may adversely affect the achievement of the quality objectives. (Ref: Para. A48)

26.               The firm shall design and implement responses to address the quality risks in a manner that is based on, and responsive to, the reasons for the assessments given to the quality risks. The firm's responses shall also include the responses specified in paragraph 34. (Ref: Para. A49–A51)

27.               The firm shall establish policies or procedures that are designed to identify information that indicates additional quality objectives, or additional or modified quality risks or responses, are needed due to changes in the nature and circumstances of the firm or its engagements. If such information is identified, the firm shall consider the information and when appropriate: (Ref: Para. A52–A53)

(a)                Establish additional quality objectives or modify additional quality objectives already established by the firm; (Ref: Para. A54)

(b)                Identify and assess additional quality risks, modify the quality risks or reassess the quality risks; or

(c)                Design and implement additional responses, or modify the responses.

Governance and Leadership

28.               The firm shall establish the following quality objectives that address the firm's governance and leadership, which establishes the environment that supports the system of quality management:

(a)                The firm demonstrates a commitment to quality through a culture that exists throughout the firm, which recognises and reinforces: (Ref: Para. A55–A56)

(i)                 The firm's role in serving the public interest by consistently performing quality engagements;

(ii)               The importance of professional ethics, values and attitudes;

(iii)             The responsibility of all personnel for quality relating to the performance of engagements or activities within the system of quality management, and their expected behaviour; and

(iv)             The importance of quality in the firm's strategic decisions and actions, including the firm's financial and operational priorities.

(b)                Leadership is responsible and accountable for quality. (Ref: Para. A57)

(c)                Leadership