Introduction

Includes: Scope of this Auditing Standard, Authority of this Auditing Standard, Effective Date

Scope of this Auditing Standard

1

[Deleted by the AUASB.  Refer Aus 1.1]

Aus 1.1

This Auditing Standard, ASQC 1 (the Standard), deals with the firm’s responsibilities for its system of quality control for audits and reviews of financial reports and other financial information, other assurance engagements and related services engagements. This Standard is to be read in conjunction with relevant ethical requirements.  Relevant ethical requirements are defined in ASA 102.[*]

*

See ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.

2

Other pronouncements issued by Auditing and Assurance Standards Board (AUASB) set out additional standards and guidance on the responsibilities of firm personnel regarding quality control procedures for specific types of engagements. ASA 220,[1] for example, deals with quality control procedures for an audit of a financial report and other historical financial information.

1

See ASA 220 Quality Control for an Audit of a Financial Report and Other Historical Financial Information.

3

A system of quality control consists of policies designed to achieve the objective set out in paragraph 11 of this Standard and the procedures necessary to implement and monitor compliance with those policies.

Authority of this Auditing Standard

4

[Deleted by the AUASB.  Refer Aus 4.1]

Aus 4.1

This Standard applies to all firms of assurance practitioners in respect of audits and reviews of financial reports and other financial information, other assurance engagements and related services engagements.  The nature and extent of the policies and procedures developed by an individual firm to comply with this Standard will depend on various factors such as the size and operating characteristics of the firm, and whether it is part of a network.

Aus 4.2

The requirements of this Standard apply to a firm, not to the individual auditor(s) within the firm.

5

This Standard contains the objective of the firm in following this Standard, and requirements designed to enable the firm to meet that stated objective.  In addition, it contains related guidance in the form of application and other explanatory material, as discussed further in paragraph 8 of this Standard, and introductory material that provides context relevant to a proper understanding of this Standard, and definitions.

6

The objective provides the context in which the requirements of this Standard are set, and is intended to assist the firm in: 

  • Understanding what needs to be accomplished; and 
  • Deciding whether more needs to be done to achieve the objective. 

7

The requirements of this Standard are expressed using “shall.”

8

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 of policies and procedures that may be appropriate in the circumstances. 

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 Standard.  Where appropriate, additional considerations specific to public sector audit organisations or smaller firms are included within the application and other explanatory material.  These additional considerations assist in the application of the requirements in this Standard.  They do not, however, limit or reduce the responsibility of the firm to apply and comply with the requirements in this Standard.

9

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

Effective Date

10

[Deleted by the AUASB.  Refer Aus 0.3]