This non-authoritative First-time Implementation Guide will help practitioners understand and implement the requirements of the International Standard on Quality Management (ISQM) 2, Engagement Quality Reviews. It will help practitioners and firms successfully plan and implement the standards by the effective date, December 15, 2022.
It does not amend or override the International Standard on Quality Management (ISQMs), the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISQMs.
This non-authoritative First-time Implementation Guide may help stakeholders understand the requirements of the International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and implement the standard in the manner intended.
Firms are required to have systems of quality management designed and implemented in accordance with ISQM 1 by December 15, 2022.
The International Auditing and Assurance Standards Board (IAASB) today released two guides to help stakeholders implement its suite of quality management standards. The guides will help stakeholders understand the standards and properly implement the requirements in the manner intended:
The IAASB will also issue an implementation guide for International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements, in Q3. The suite of quality management standards come into effect on December 15, 2022.
These publications do not amend or override the International Standards on Quality Management (ISQMs), the texts of which alone are authoritative. Reading the publications are not a substitute for reading the ISQMs.
The IAASB encourages all practitioners to plan early for appropriate implementation, given the potential impact of the changes to firms’ systems of quality management.
Guides Provide a Pathway to a Robust, Effective Quality Management System
In 2015, the International Auditing and Assurance Standards Board (IAASB) released new auditor reporting standards to enhance the communicative value, transparency and relevance of the auditor’s report in the public interest. Today, the IAASB published a feedback statement after a public consultation. Stakeholders expressed broad support for the standards, and the resulting auditor’s report, and indicated that the standards have met the IAASB’s objectives.
The stakeholder feedback statement summarizes key themes and views shared with the IAASB through the 2020 Auditor Reporting Post-Implementation Survey as well as a roundtable discussion held in September 2020. The survey, roundtable, and related outreach solicited perspectives on implementation and specific aspects of the revised auditor reporting standards. Three of the key areas of focus for stakeholders were key audit matters, going concern and other information in the auditor’s report. The IAASB’s Auditor Reporting Implementation Working Group is considering the feedback in developing its post-implementation review recommendations for the IAASB’s consideration in September 2021.
In 2015, the IAASB released new auditor reporting standards to enhance the communicative value, transparency and relevance of the auditor’s report in the public interest. Reflecting stakeholder input, the feedback statement makes it clear the standards, and the resulting auditor’s report, have broad support from stakeholders—and meet the IAASB’s objectives. It summarizes key themes and views shared with the IAASB through the 2020 Auditor Reporting Post-Implementation Survey as well as a roundtable discussion held in September 2020.
The IAASB in collaboration with IFAC held the final webinar in our quality management webinar series on August 18 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar addressed how firms can bring all the components of a quality management system together to align with the requirements in the IAASB’s 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.
The IAASB in collaboration with IFAC held the third webinar in our quality management webinar series on August 5 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar addressed how your firm can establish or modify your monitoring and remediation processes to align with the requirements in the IAASB’s 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.
The IAASB in collaboration with IFAC held the second webinar in our quality management webinar series on July 29 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar addressed how to resource to align with the requirements in the IAASB’s 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.
The IAASB in collaboration with IFAC held the first webinar in our quality management webinar series on June 24 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar addressed your firm’s risk assessment process and how to align with the requirements in the IAASB’s 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.
The IAASB in collaboration with IFAC invite you to join our quality management webinar series on June 24, July 29, and August 5 and 18 on Zoom with livestreaming on the IAASB’s YouTube channel. The webinars will take a deep dive into aspects of the IAASB’s 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.
ISQM 1 is part of the IAASB’s suite of quality management standards, issued in late 2020. The standards strengthen and modernize how firms approach quality management. They also mark an evolution from a traditional, more linear approach for quality controlto an integrated quality managementapproach.
The webinars will be held in English and will be available on the IAASB’s YouTube Channel following the session. Participants joining live via Zoom will be able to submit questions.
Webinar One: All You Need to Know about the Firm’s Risk Assessment Process
Discussion will include the linkage between ISQM 1 and International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements
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Webinar Three: What’s New for Firms’ Monitoring and Remediation Processes
August 5, 11 am–12 pm GMT
Featuring IAASB member Chun Wee Chiew, IAASB technical advisor Denise Weber, and IAASB Deputy Director Natalie Klonaridis
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Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System
August 18, 11 am–12 pm GMT
Featuring IAASB members Julie Corden and Sachiko Kai and IAASB Deputy Director Natalie Klonaridis
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This webinar series is part of the IAASB’s implementation support efforts. Looking for additional resources on the suite of quality management standards? Check out the IAASB’s dedicated web page: iaasb.org/quality-management
IFAC is committed to supporting our member organizations and the development, adoption, and implementation of high-quality international standards.
A Deep Dive into International Standard on Quality Management 1
