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
- Keith Wilson, PCAOB Observer
Project Stages
Board Papers
CAG Papers
Summary
MEETING HIGHLIGHTS - DECEMBER 2019
The Board continued to discuss the key issues highlighted by respondents to the Exposure Draft (ED) of ISQM 1 (ED-ISQM 1) including the scalability, complexity and prescriptiveness of the standard, appropriate tailoring of the system of quality management for their circumstances and the making sure the standard that can be applied in all circumstances.
The Board supported the changes to the structure of the standard, adjusting the quality objectives and responses in the components to be more streamlined and the revisions to the drafting and presentation of the standard to simplify and improve the readability of the standard. The Board also agreed with proposed revisions to the firm’s risk assessment process, including introducing factors to consider in identifying and assessing quality risks.
The Board supported the ISQM 1 Task Force’s proposals to embed a risk-based approach in the monitoring and remediation component, improve the selection of engagements for inspection such that it is more risk-based, and further clarify the framework for evaluating findings and identifying deficiencies.
