Quality Control Manual Tool & APES 320 compliance

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 requires 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 an Excel tool to help you develop a system of quality management for your practice, tailored to your individual circumstances. You can choose to use the version for sole practitioners and small firms, or network firms, depending on your needs.

The tool provides 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 does the tool help you?

Guides you in developing and maintaining your policy and procedures, improving efficiency and service
Provides you with a guided process for simplicity
Makes compliance easier and faster.

Download your System of Quality Management Tool

Sole Practitioner or Small Firm

XLSX · 1.1 MB

Network Firm

XLSX · 1.1 MB

Frequently Asked Questions

While the tool has been designed to evidence the firm's risk assessment and responses in line with the requirements of the standard, it is up to members to ensure what has been documented is applicable to their practice and is operational.

This will include following through any action which provides evidence that supports compliance with the standard.

Where an assessor finds a member has not complied with the requirements of the standard, they will explain their findings, including their reasons.
Assessors will review the member's risk assessment and responses documentation to determine whether all the mandatory requirements have been met. This may extend to a review of policies and procedures outlines as responses to quality risks and their application in practice across the firm.

Assessors will also look to see whether the risk assessment and responses described are relevant to the practice, and will make suggestions on procedures which may be considered based on the member's practice.
No. Unfortunately as systems and processes are dynamic, it is not possible to provide confirmation of compliance at any given point in time. However, at the conclusion of a CPA Australia Best Practice Program assessment, the completion letter will confirm that all mandatory elements of the applicable professional standards were able to be evidenced at the time of assessment. This will include quality management, but will not explicitly refer to the standard.

If you experience difficulties using the tool or would like to provide feedback, contact [email protected]

System of Quality Management Tool for firms providing audit and assurance services

Content Summary

How does the tool help you?

Download your System of Quality Management Tool

Frequently Asked Questions

What system requirements are needed to access the tool?

The link to the tool is not working. What do I do?

Is this tool free of charge?

Can I promote this to a member discussion group?

Can we promote this tool in other public practice events such as the Public Practice Program intensive workshops?

Will using this tool ensure that I am ASQM 1/PES 3/ISQM 1 compliant?

My assessor advised me that I was not compliant with the quality management requirements. Can you advise me why the tool does not produce a compliant System of Quality Management?

How will the assessor assess quality management compliance?

How do I save my work in the tool, as I am unable to see a save icon?

Do we have resources available to help practitioners with developing a System of Quality Management?

Can CPA Australia provide me with written confirmation that I have a compliant system of quality management?

In my last quality review, I was deemed compliant. Will they be assessing this again if I am selected for a CPA Australia Best Practice Program Assessment?

I already have a System of Quality Management. Do I need to use a tool to be compliant?

Who should I contact if I have an issue with my assessor's assessment of quality management?

Is this tool relevant to Australian practitioners only?

I am a CPA Australia member but hold a CAANZ public practice certificate. Can I access this tool?

I am a limited public practice certificate holder / certificate holder as an employee. Can I access this tool?

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