Quality Management at Firm Level - ISQM 1

Objective

The objectives of this project are:

  • Enhancing the robustness of firm’s systems of quality control through various means, including:
    • Introducing a more proactive and tailored approach to managing quality.
    • Increasing firm leadership responsibilities and accountability, and improving firm governance.
    • More rigorous monitoring of systems of quality control and more effective remediation of deficiencies.
  • Modernizing the standard for an evolving and increasingly complex environment, including addressing the impact of technology, networks, and use of external service providers.
  • Improving the scalability of the standard.

PROJECT CONTACT

TASK FORCE

Project Stages

Board Papers

September 2019 December 2019 March 2020 April 2020 June 2020

Board Minutes

September 2019 December 2019 March and April 2020

CAG Papers

September 2019 March 2020

CAG Minutes

September 2019

Summary
MEETING HIGHLIGHTS - JUNE 2020

The Board discussed revisions to certain areas of proposed ISQM 1, including the firm’s risk assessment process, resources, relevant ethical requirements, monitoring and remediation, and the evaluation of the system of quality management. The Board also discussed external communications, in particular the firm’s communication with those charged with governance when performing an audit of financial statements of a listed entity.

The Board supported the proposals, and encouraged the ISQM 1 Task Force to further simplify the approach to human resources, in particular the application material explaining the firm and engagement team responsibilities in addressing the competence and capabilities of individuals assigned to the engagement team. The Board also provided varying comments on external communications, although was generally supportive of the direction proposed by the ISQM 1 Task Force.

The ISQM 1 Task Force will present a full draft of proposed ISQM 1 for IAASB approval via videoconference in September 2020.

 

Thank you for your interest in our publications. These valuable works are the product of substantial time, effort and resources, which you acknowledge by accepting the following terms of use. You may not reproduce, store, transmit in any form or by any means, with the exception of non-commercial use (e.g., professional and personal reference and research work), translate, modify or create derivative works or adaptations based on such publications, or any part thereof, without the prior written permission of IFAC.

Our reproduction and translation policies, as well as our online permission request and inquiry system, are accessible on the Permissions Information web page.

For additional information, please read our website Terms of Use. ALL RIGHTS RESERVED.

Agree