Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p23
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 68369–71438

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 this ASQM (Ref: Para. 12)

A6.             The objective of this ASQM provides the context in which the requirements of this ASQM are set, establishes the desired outcome of this ASQM and is intended to assist the firm in understanding what needs to be accomplished and, where necessary, the appropriate means of doing so.

A7.             The requirements of this ASQM are expressed using "shall."

A8.             Where necessary, the application and other explanatory material provides further explanation of the requirements and guidance for carrying them out. In particular, it may:

           * Explain more precisely what a requirement means or is intended to cover; and

           * Include examples that illustrate how the requirements might be applied.

    While such guidance does not in itself impose a requirement, it is relevant to the proper application of the requirements. The application and other explanatory material may also provide background information on matters addressed in this ASQM. Where appropriate, additional considerations specific to public sector audit organisations are included within the application and other explanatory material. These additional considerations assist in the application of the requirements in this ASQM. They do not, however, limit or reduce the responsibility of the firm to apply and comply with the requirements in this ASQM.

A9.             [Deleted by the AUASB. Refer Aus A9.1]

Aus A9.1 This ASQM includes, under the heading "Definitions," a description of the meanings attributed to certain terms for purposes of this ASQM. These definitions are provided to assist in the consistent application and interpretation of this ASQM, and are not intended to override definitions that may be established for other purposes, whether in law, regulation or otherwise. The Glossary of Terms relating to AUASB Standards issued by the AUASB includes the terms defined in this ASQM. The Glossary of Terms also includes descriptions of other terms found in the ASQMs to assist in common and consistent interpretation and translation.

Definitions

Deficiency (Ref: Para. 16(a))

A10.          The firm identifies deficiencies through evaluating findings. A deficiency may arise from a finding, or a combination of findings.

A11.         When a deficiency is identified as a result of a quality risk, or combination of quality risks, not being identified or properly assessed, the response(s) to address such quality risk(s) may also be absent, or not appropriately designed or implemented.

A12.         The other aspects of the system of quality management consist of the requirements in this ASQM addressing:

           * Assigning responsibilities (paragraphs 20–22);

           * The firm's risk assessment process;

           * The monitoring