Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p13
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 37568–41013

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 demonstrates a commitment to quality through their actions and behaviours. (Ref: Para. A58)

(d)                The organisational structure and assignment of roles, responsibilities and authority is appropriate to enable the design, implementation and operation of the firm's system of quality management. (Ref: Para. A32, A33, A35, A59)

(e)                Resource needs, including financial resources, are planned for and resources are obtained, allocated or assigned in a manner that is consistent with the firm's commitment to quality. (Ref: Para. A60–A61)

Relevant Ethical Requirements

29.               The firm shall establish the following quality objectives that address the fulfillment of responsibilities in accordance with relevant ethical requirements, including those related to independence: (Ref: Para. A62–A64, A66)

(a)                The firm and its personnel:

(i)                 Understand the relevant ethical requirements to which the firm and the firm's engagements are subject; and (Ref: Para. A22, A24)

(ii)               Fulfill their responsibilities in relation to the relevant ethical requirements to which the firm and the firm's engagements are subject.

(b)                Others, including the network, network firms, individuals in the network or network firms, or service providers, who are subject to the relevant ethical requirements to which the firm and the firm's engagements are subject:

(i)                 Understand the relevant ethical requirements that apply to them; and (Ref: Para. A22, A24, A65)

(ii)               Fulfill their responsibilities in relation to the relevant ethical requirements that apply to them.

Acceptance and Continuance of Client Relationships and Specific Engagements

30.               The firm shall establish the following quality objectives that address the acceptance and continuance of client relationships and specific engagements:

(a)                Judgements by the firm about whether to accept or continue a client relationship or specific engagement are appropriate based on:

(i)                 Information obtained about the nature and circumstances of the engagement and the integrity and ethical values of the client (including management, and, when appropriate, those charged with governance) that is sufficient to support such judgements; and (Ref: Para. A67–A71)

(ii)               The firm's ability to perform the engagement in accordance with AUASB standards and applicable legal and regulatory requirements. (Ref: Para. A72)

(b)                The financial and operational priorities of the firm do not lead to inappropriate judgements about whether to accept or continue a client relationship or specific engagement. (Ref: Para. A73–A74)

Engagement Performance

31.               The firm shall establish the following quality objectives that address the performance of quality engagements:

(a)                Engagement teams understand and fulfill their responsibilities in connection with the engagements, including, as applicable, the overall responsibility of engagement partners for managing and