Supporting International Standards

Are Your Firm and Its Engagements Partners Ready for ISQM 1? – IAASB & IFAC Second Quality Management Webinar Highlights Resources and Expectations for Firms and Engagement Partners

Gabriella Kusz MBA, MPP, CPA, CGMA, Natalie Klonaridis | October 26, 2021

Our world evolved during the COVID19 pandemic to recognize the greater need to design, manage, and maintain not only our human resources, but also our technological, intellectual and financial resources. With a view to bringing a modern and holistic approach to quality, the Quality Management standards expand the scope of ‘resources’ beyond the traditional view of the human resources to better recognize the changing environment in which firms operate.

Of particular focus, is the inclusion of technological and intellectual resources in the quality management standards. In our changing world, engagement teams depend very heavily on technology and intellectual resources. Under ISQM 1, the focus centers on the need to obtain, develop and assign resources in a manner that enables the system of quality management to operate, and engagement teams to perform engagements effectively. To ensure that these resources keep in step with the changing world around them, ISQM 1 also outlines the need for resources to be maintained and used appropriately.

Important to note, when referring to technological resources, ISQM 1 refers to technology needed to operate the system of quality management. Examples of technological resources that fall within the scope of the quality management standards include technologies:

(a) Used to design, implement or operate a system of quality management, such as IT applications for archiving files, IT applications to manage staff or IT applications used to track independence.

(b) Used by engagement teams to perform engagements, such as IT applications for managing the audit file and working papers, and IT applications used to perform data analytics; and

(c) That are essential to enabling effective operation of IT applications, such as operating systems, databases, and supporting hardware.

Some technology used by the firm may be used for another purpose and therefore would not be within the scope of the standard.

Under ISQM 1, intellectual resources may include the methodology, guides, checklists, or information sources used by the firm to enable the operation of the system of quality management. ISQM 1 particularly emphasizes that intellectual resources need to be consistent with professional standards and jurisdictional legal and regulatory requirements.

The IAASB in collaboration with IFAC held four global webinars to enhance knowledge and understanding of ISQM 1: 

  • Webinar One: All You Need to Know about the Firm’s Risk Assessment Process; 
  • Webinar Two: Resources: Expectations for Firms and Engagement Partners; 
  • Webinar Three: What’s New for Firms’ Monitoring and Remediation Processes;
  • Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System.

This second webinar took a deep dive into resources, explaining what are resources in ISQM 1 and why they are so important. It explored:

  • For human resources:
    • Who are human resources, and members of the engagement team.
    • How addressing internal personnel and external human resources (i.e., services providers) might differ within the firm’s quality management system.
    • The interrelationship between ISQM 1 and ISA 220 (Revised), and the respective responsibilities of the firm and the engagement partner for human resources.
  • What are technological and intellectual resources?
  • Firms’ responsibilities when using service providers who provide a resource to the firm.

How important is it for you and your firm to view this webinar session? Roughly 1,500 real-time participants joined us for this session and their feedback speaks for itself:

  • Ninety-one percent (91%) of webinar participants felt that the information and content presented was very valuable to their work.
  • Ninety-one percent (91%) believed that participating in this webinar put them in a better position to understand the resource expectations for firms and partners.
  • Eighty-one percent (81%) believed that participating in this webinar positioned them to move forward in a timely manner in implementing the ISQM 1 standards.
  • Most notably, eighty-four percent (84%) of webinar respondents believe they are more likely to apply the standards correctly in practice having attended this webinar.

To view the recording of this event, please click on the below link to visit the IAASB YouTube Channel and access this event’s video:

To learn more about the IAASB’s four global quality webinars and to view recordings and obtain presentation materials, please visit:


Gabriella Kusz MBA, MPP, CPA, CGMA

Principal, Strategic Initiatives, IFAC

Gabriella Kusz is the Principal for Strategic Initiatives at the International Federation of Accountants (IFAC) where, in addition to other areas, she supports the profession’s leadership and innovation in the digital era. Gabriella also serves as Board Director at the Global Digital Asset and Cryptocurrency Association, a global voluntary self-regulatory association for the industry where she supports awareness building and education. Prior to joining IFAC, she worked with the World Bank Group Governance Global Practice where she was responsible for leading the Corporate Governance and Financial Reporting (CGFR) workstream for the Middle East and North Africa (MENA) region. In her volunteer time, she serves as a Distinguished Global Expert for the Global Small and Medium Enterprise (SME) Policy Network (GSPN) at Prince Sultan University (Riyadh, KSA), as an Advisor to the Banque Saudi Fransi / PSU Global Islamic Finance, Tax and Zakat Centre (GIFTZ), and as Deputy Chair of the Government Blockchain Association (GBA) Regulator Working Group. Gabriella is a licensed US CPA (State of Virginia) and CGMA and holds AICPA Certificates in IFRS as well as the Global Reporting Initiative Certificate in Sustainability Reporting Standards. She holds her Master’s in Public Policy (International Policy and Development) from Georgetown University, a Master’s in Business Administration and Bachelor of Accounting from the University of Dayton. See more by Gabriella Kusz MBA, MPP, CPA, CGMA

Natalie Klonaridis

Deputy Director, International Auditing & Assurance Standards Board

Natalie Klonaridis is a deputy director at the International Auditing and Assurance Standards Board. Since she joined the IAASB in 2016, she has been responsible for its project on firms’ systems of quality management (International Standard on Quality Management 1) as well as involved in many other IAASB projects and initiatives. Prior to her role at the IAASB, Natalie was a senior manager in Deloitte South Africa’s national office. She also participated in a number of audit and assurance working groups and committees of the national standard setter in South Africa and the South African Institute of Chartered Accountants. Natalie also has many years of practical audit experience at both large and small firms. Natalie is qualified as a chartered accountant in South Africa, and is currently based in New York. See more by Natalie Klonaridis


Join the Conversation

To leave a comment below, login or register with


Thank you for your interest in our publications. These valuable works are the product of substantial time, effort and resources, which you acknowledge by accepting the following terms of use. You may not reproduce, store, transmit in any form or by any means, with the exception of non-commercial use (e.g., professional and personal reference and research work), translate, modify or create derivative works or adaptations based on such publications, or any part thereof, without the prior written permission of IFAC.

Our reproduction and translation policies, as well as our online permission request and inquiry system, are accessible on the Permissions Information web page.

For additional information, please read our website Terms of Use. ALL RIGHTS RESERVED.