A journey towards proactive and adaptable quality management
The Audit and Assurance Faculty is planning a programme of activities to support members as they approach first-time implementation of newly designed compliant systems.
New and revised standards have been issued for an audit firm’s responsibility to design, implement and operate a system of quality management (QM). The standards are effective for audits of financial statements for periods beginning on or after 15 December 2022. By this date, firms are required to have compliant systems of QM both designed and implemented. All audit firms will be affected by the standards and the new approach they introduce.
This new QM approach is focused on proactively identifying and responding to risks to quality. It requires a firm to customise the design, implementation and operation of its system of QM based on the nature and circumstances of the firm, using an integrated approach that reflects upon the QM system as a whole. Considered together, the requirements in the new and revised standards are extensive.