The International Standard on Quality Management (ISQMs) are a set of standards developed by the International Auditing and Assurance Standards Board (IAASB) to provide guidance to auditors on how to plan, perform, and report on their work to ensure that it meets the required quality standards.
The purpose of ISQM is to help auditors maintain the necessary level of competence, objectivity, and professional scepticism to provide high-quality audit services.
What is the scope of ISQM?
ISQM applies to all audit engagements, regardless of their size or complexity. It is intended to provide guidance to auditors on how to plan, perform, and report on their work to ensure that it meets the required quality standards.
What are the key requirements of ISQM?
ISQM requires auditors to establish and maintain a system of quality management that includes policies, procedures, and processes to ensure that their audit engagements are conducted in accordance with the required quality standards. This includes requirements related to leadership, ethics, human resources, engagement performance, and monitoring.
How does ISQM differ from other quality management standards?
ISQM is specific to the audit profession and is designed to provide guidance on how to apply quality management principles to the audit process. It differs from other quality management standards, such as ISO 9001, which are more general in nature and can be applied to any type of organisation.
How does ISQM affect auditors and audit firms?
ISQM requires auditors and audit firms to establish and maintain systems of quality management that include policies, procedures, and processes to ensure that their audit engagements are conducted in accordance with the required quality standards.
This means that auditors and audit firms may need to invest in training, technology, and other resources to meet these requirements.
How is compliance with ISQM monitored and enforced?
Compliance with ISQM is monitored by the audit regulator in each jurisdiction. The regulator may review audit firms' quality management systems and audit engagements to ensure that they meet the required quality standards. Non-compliance with ISQM can result in penalties or other disciplinary action.