In readiness for the International Standards on Quality Management (ISQMs), our experienced and dedicated technical experts are creating a new product to incorporate the requirements of both ISQM 1 and 2 and for auditors, which also incorporates ISA 220.
In addition to this new product, we have produced a related training programme aimed at supporting firms. Firms can also make use of Mercia’s experts through our monitoring activities, where we can provide hot and cold audit file reviews.
Our NEW Quality Management Product is designed to be easy to use and users will be able to browse online, alternatively sections of content / commentary can be downloaded into Microsoft Word or PDF documents.
Discounts are available to those who already subscribe to our Audit Manual (UK) Package or are entitled to membership discounts.
One of the key documents included within this product is a ‘Risk Assessment Tool’.
This has been populated in a Microsoft Excel format and has been set up to follow the risk assessment requirements of ISQM 1. The Risk Assessment Tool documents quality objectives, quality risks and responses to quality risks.
In order to help firms of different sizes, we have drafted this Excel spreadsheet, designed to help firms of differing types and sizes, with:
It should be noted that a firm’s risk assessment must be individual to the firm and that this database should only be used as a starting point to ensure that all the relevant risks and their responses are adequately documented.
ISQM Implementation - Quality Management Manual ▶
The expected content for the Quality Management Product includes the following chapters and appendices:
We are busy building our portfolio of related training
Includes a useful summary of ISQM (UK)1 and ISQM 2
Each quarter will include a different aspect of the ISQMs
Risk Assessment under ISQM 1 including practical examples
Monitoring and remediation of the System of Quality Management (SOQM) including practical examples
ISQM 2 including how it links to the requirements of ISQM 1
We carry out hundreds of reviews for accountancy firms throughout the UK and Ireland each year.
Our experienced team can help ensure your firm remains up to date and compliant in a wide range of areas.
Plus, all reviews include a full written report detailing the findings and any practical guidance to help you address any areas as required.
Web articles on the forthcoming changes are available below:
The ISQMs (UK) apply to all firms performing audits, reviews of financial statements or other assurance or related services engagements (i.e. if the firm performs any of these engagements, these ISQMs (UK) apply and a system of quality management should be established in accordance with the requirements of these ISQMs (UK) that enables the consistent performance by the firm of all such engagements).
In the UK, these ISQMs (UK) apply to firms that perform engagements undertaken in compliance with performance standards issued by the FRC, which comprise:
(a) Audits of financial statements undertaken in compliance with International Standards on Auditing (UK);
(b) Reporting accountants acting in connection with an investment circular;
(c) Reviews of interim financial information by the independent auditor of the entity (International Standard on Review Engagements (UK) 2410 (Revised May 2021));
(d) Engagements to provide assurance on client assets to the Financial Conduct Authority; and
(e) Assurance engagements specified by the FRC as 'public interest assurance engagements' performed in accordance with International Standard on Assurance Engagements (UK) (ISAE (UK)) 3000 (July 2020).
The new standards have an effective date of 15 December 2022, although early adoption is strongly encouraged.
For ISA (UK) 220, this means periods beginning on this date and, for ISQM (UK) 2, this refers to EQC Reviews for such periods.
However, for ISQM (UK) 1, it is important for firms to note that they will need to have implemented a compliant quality management system by that date.