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System of Quality Management Tools for firms providing audit and assurance services
Content Summary
The Australian Auditing and Assurance Standards Board (AuASB) issued Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements. The Standard required systems of quality management to be implemented by 15 December 2022. The New Zealand equivalent PES 3 aligns with this standard and both conform to the international standard ISQM 1. These revised standards introduce a risk-based approach to quality management.
All public practice certificate holders providing audit and assurance services must have a system of Quality Management to be compliant with the relevant quality management standard (ASQM 1/PES 3/ISQM 1).
We have developed a tool to help you develop a system of quality management for your practice, tailored to your individual circumstances. We have built a new online tool which sole practitioners and small firms can use to develop their system of quality management. Our existing Excel tool will remain available and you can choose to use the version for sole practitioners and small firms, or network firms, depending on your needs.
The tools provide the quality objectives included in the standard for each of the key areas of quality management:
- governance and leadership
- relevant ethical requirements
- acceptance and continuance
- engagement performance
- resources
- information and communication
A library of possible risks is provided for each objective to help members document their risks in achieving the quality objectives. Space is available for additional or modified objectives and risks to be added by the member. Once risks are identified, members are prompted in the tool to assess the risks by considering the likelihood and effect of achieving the quality objective. Where this assessment results in the firm needing to respond to the risk a library of possible risk responses is provided. Again, the member is able to edit and add to these library responses. It is essential that the risks and responses documented within the tool reflect the firm's circumstances.
The documentation you create using the tool will assist your firm to comply with the quality management standards, helping you to meet your regulatory obligations.
How do these tools help you?
- Guides you in developing and maintaining your system of quality management, improving efficiency and service
- Provides you with a guided process for simplicity
- Makes compliance easier and faster.
Access our online System of Quality Management Tool or download the relevant Excel tool:
ASQM 1 online tool
Our online tool is available for members to use that provides an interactive experience to designing your system of quality management and will assist in helping to monitor your system’s ongoing compliance.
Introduced September 2022
Introduced September 2022
Frequently Asked Questions
If you experience difficulties using the tool or would like to provide feedback, contact [email protected]
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