All audit firms are affected by the new quality management standards. David Smith and Gill Spaul share practical tips to help with preparations.
As audit firms transition from international standards on quality control (ISQC) to international standards on quality management (ISQM), there is a great deal to think about. The new and revised standards are effective for periods beginning on or after 15 December 2022. This means that by this date, firms are required to have compliant systems of quality management (QM) both designed and implemented (although the operation of the responses and monitoring activities is only required to commence from this date).
The new and revised standards for an audit firm’s responsibilities to design, implement and operate a system of quality management (SOQM) focus on proactively identifying and responding to risks to quality. This requires a firm to customise design, implementation and operation of its system of QM, based on the firm’s nature and circumstances, using an integrated approach that reflects on the QM system as a whole.