Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p17
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 17/31)
Character Range: 56292–59534

materials, and in partner and staff appraisal procedures such that they will support and reinforce the firm's view on the importance of quality and how, practically, it is to be achieved.

A5.             Of particular importance in promoting an internal culture based on quality is the need for the firm's leadership to recognise that the firm's business strategy is subject to the overriding requirement for the firm to achieve quality in all the engagements that the firm performs.  Promoting such an internal culture includes:

(a)                Establishment of policies and procedures that address performance evaluation, compensation, and promotion (including incentive systems) with regard to its personnel, in order to demonstrate the firm's overriding commitment to quality;

(b)                Assignment of management responsibilities so that commercial considerations do not override the quality of work performed; and

(c)                Provision of sufficient resources for the development, documentation and support of its quality control policies and procedures.

Assigning Operational Responsibility for the Firm's System of Quality Control (Ref: Para. 19)

A6.             Sufficient and appropriate experience and ability enables the person or persons responsible for the firm's system of quality control to identify and understand quality control issues, and to develop appropriate policies and procedures.  Necessary authority enables the person or persons to implement those policies and procedures.

Relevant Ethical Requirements

Compliance with Relevant Ethical Requirements (Ref: Para. 20)

A7.             [Deleted by the AUASB.  Refer Aus A7.1]

Aus A7.1 The firm is required to comply with relevant ethical requirements, including those pertaining to independence, when performing audits and reviews, other assurance engagements and related services engagements, as defined in ASA 102.

A8.             [Deleted by the AUASB.  Refer ASA 102]

A9.             [Deleted by the AUASB.  Refer ASA 102]

Definition of "Firm," "Network" and "Network Firm" (Ref: Para. 20‑25)

A10.         [Deleted by the AUASB.  Refer ASA 102][4]

Independence (Ref: Para. 21)

Aus A10.1 Examples of independence requirements that may be applicable are addressed in the Corporations Act 2001 Part 2M.3 Division 3, and relevant ethical requirements.*

Written Confirmation (Ref: Para. Aus 24.1)

A11.         Written confirmation may be in paper or electronic form.  By obtaining confirmation and taking appropriate action on information indicating a breach, the firm demonstrates the importance that it attaches to independence and makes the issue current for, and visible to, its personnel.

Long Association with an Entity (Ref: Para. 25)

A12.         [Deleted by the AUASB.  Refer Aus A12.1]

Aus A12.1 A threat may be created as a result of an individual's long association with:

               * The entity and its operations;

               * The entity's senior management; or

               * The underlying subject matter and subject matter information of the assurance engagement.

A13.         [Deleted by the AUASB.  Refer Aus A13.1]

         Aus A13.1 Relevant ethical requirements include examples of factors that