On 5 July 2023, the International Federation of Accountants (IFAC) released the second instalment in a three-part publication series to help SMEs implement the new quality management standards (ISQM 1).
Instalment One, issued earlier this year, addressed the mindset change the new standards require and the shift in focus from quality control to quality management.
Instalment Two will cover developing a Detailed Implementation Plan that provides a step approach to identifying your quality objectives; completing your quality risk assessment process; identifying existing or creating new responses to those quality risks; and implementing, documenting, and communicating your system of quality management.
It will also address the eight components of ISQM 1.
It provides an example case study to illustrate the transition from ISQC 1 to ISQM 1 for firms that perform assurance engagements. It includes documentation aids covering independence, acceptance, continuance of clients and engagements, resources, outside consultation, and a sample checklist for engagement quality reviews.
Instalment Three, expected later this year, will cover monitoring and remediation. This series joins IFAC’s collection of resources that support quality management implementation, including webinars, articles, and videos, as well as the IAASB first-time implementation guides, all available at ifac.org/quality management.
Download IFAC’s INSTALLMENT TWO: Developing a Detailed Implementation Plan here.
