Improving Audit Quality 3: An Overview of ISQM 1 - Firm’s System of Quality Management
Updated: Jan 2
What?
The International Standard on Quality Management 1 (ISQM 1) - Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements strengthens firms' quality management systems by taking a robust, proactive, and effective approach to quality management.
The standard encourages firms to design a system of quality management that is adapted to the specific nature of the firm as well as the engagements that it undertakes.
ISQM 1 replaces the standard ISQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements and Other Assurance and Related Services Engagements.
Who needs to meet ISQM standards?
It applies to all firms that perform audits or reviews of financial statements or other assurance or related services engagements (i.e., if the firm performs any of these engagements, ISQM 1 applies to manage quality for those engagements).