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
- Julie Corden, Chair
- Sue Almond
- Chun Wee Chiew
- Sachiko Kai
- Denise Weber
- Karin French, Correspondent Member
- Megan Zietsman, PCAOB Observer
Project Stages
Board Papers
September 2019 December 2019 March 2020 April 2020 June 2020 September 2020
Board Minutes
September 2019 December 2019 March and April 2020 June 2020
CAG Papers
September 2019 March 2020 September 2020
CAG Minutes
Issued Document
Final Pronouncement Basis for Conclusions Fact Sheet: Introduction to ISQM 1 Conforming Amendments to ISAs and Related Material Arising from the Quality Management Projects
Summary
MEETING HIGHLIGHTS - SEPTEMBER 2020
The Board approved ISQM 1 as a final standard. Firms will be required to design and implement systems of quality management in compliance with ISQM 1 by December 15, 2022. Once the Public Interest Oversight Board’s (PIOB) confirmation that due process was followed is received, the Board will formally release the standard.
In finalizing ISQM 1, the Board considered how to enhance the focus on the public interest and consistent performance of quality engagements in the context of the objective of the standard, and discussed clarifications relating to human resources and external communications. The Board also suggested a number of areas that should be emphasized in the basis for conclusions.
