A suite of new and revised standards has been introduced for all practices in Australia and New Zealand, changing from a system of quality control to system of quality management. This new system strengthens and modernises how practices’ approach quality management in line with evolving stakeholder expectations.

Here you can find the tools and resources you need to update the quality system in your practice. If your practice undertakes both assurance and non-assurance engagements, you may choose to extend the requirements that apply to assurance engagements to non-assurance engagements.

Assurance engagements

The standards are known as ASQM 1 and ASQM 2 in Australia and PES 3 and PES 4 in New Zealand.

Practices that perform audits or reviews of financial statements, or undertake other assurance engagements or agreed-upon procedures engagements are required to design, implement and operate a system of quality management using a risk-based approach.

This new system needs to be in place by 15 December 2022. Practices are also required to establish a monitoring and remediation process, with the first evaluation occurring by 15 December 2023.

Non-assurance engagements  

The standards are known as APES 320 in Australia and PS-1 in New Zealand.

If your practice does not perform assurance engagements, these standards have been updated to achieve high-level alignment with the standard for practices that do perform assurance engagements. The key difference is risk is addressed through the standards’ requirements rather than a separate risk assessment.

You will need to review your existing quality system for the standards’ updated requirements and make any necessary amendments. This revised system needs to be in place by 1 January 2023 for Australian practices and 15 December 2022 for New Zealand practices.