IAASA’s quality management standards became effective for all audit firms from 15th December 2022. The suite of three standards replaces ISQC 1 and are as follows;
Firms are advised to plan for their implementation. An
article from CPA Ireland's Accountancy Plus explores the key changes.
IAASB Guidance
IFAC Guidance
Quality Management Series: Small firm implementation
instalment One -
It is time to get ready for the new quality management
Instalment Two -
Developing a detailed implementation plan
IAASA Guidance
IAASA have issued a series of explanatory videos as follows;
Video one
This first video provides an overview of the Quality Management Standards and the relationship between ISQM 1, ISQM 2 and ISA 220.
Explainer video here.
Video two
This video provides an overview of International Standard on Quality Management 1- Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
Find the explainer video at the following link here.
Video three
This video provides an overview of the eight components of a system of quality mangagement as set out in International Standard on Quality Management 1- Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
Find the explainer video at the link here.
Video four
This video provides an overview of the revisions to ISA 220 – Quality Management for an Audit of Financial Statements.
Find the explainer video at the following link here
CPA Ireland's International Standard on Quality Management (‘ISQM’) (Ireland) 1 Thematic Review 2023
In early 2023 a sample of CPA audit firms were selected to provide the CPA Quality Assurance team with further information regarding their implementation of ISQM1, including details of their risk assessment and policies and procedures. The insights from these reviews were shared in a CPD session titled, “Preparing for your Quality Assurance Review 2022”. A free recording of this session is available for all CPA members at; https://portal.cpaireland.ie/Showcourses.aspx?id=22377
A copy of the slide from this session are available by clicking the following link; ISQM.
Quality Assurance reviews from January 2023 have included a review of the implementation of ISQM1 and provide an opportunity for those firms to discuss their procedures with the Quality Assurance Executive. This will continue for the remainder of the year 2023 and beyond. Further thematic reviews may be considered in 2024.