The revision of the IAASB’s International Standards on Quality Management (ISQM) is an important, globally significant opportunity for enhancing the quality and value of the audit and assurance functions around the world. Expanding focus beyond quality control, toward a more risk-based approach on quality management, the suite of quality management standards will advance the quality of audit and assurance, which drives improvements in information underpinning global capital markets and the value of financial information used in small- and medium-sized enterprises’ (SMEs) decision making. Given the significance of advancing the overall quality of financial information around the world, the roll out of the quality management standards is a strategic priority for IAASB and IFAC.
Emphasizing impact and enhanced collaboration, IFAC and IAASB have drawn together professionals from across our two organizations to address the need for a coordinated global approach to quality management awareness, regulator and professional accountancy organization capacity building, education and training, and developing resources.
Our initial emphasis focused on the IAASB’s four global seminars to enhance knowledge and understanding:
- Webinar One: All You Need to Know about the Firm’s Risk Assessment Process (June 24)
- Watch the recording on YouTube or scroll down
- For access to the Spanish translation of the PowerPoint presentation please click here. [IFAC would like to thank the Instituto de Censores Jurados de Cuentas de España for their kind translation of this presentation.]
- Webinar Two: Resources: Expectations for Firms and Engagement Partners (July 29)
- Webinar Three: What’s New for Firms’ Monitoring and Remediation Processes (August 5)
- Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System (August 18)
With roughly 3,000 global registrants, 1,359 in-real-time viewers and 665 on-demand viewers, the first in this important webinar series yielded excellent initial results. Helping participants navigate how to apply the standards in practice, this first webinar provided:
- An overview of the three quality management standards: ISQM 1, ISQM 2, and International Standard on Auditing 220;
- Highlights of key changes to the ISQM 1, including the shift of mindset from quality control to quality management, as well as utilizing a risk-based approach;
- Exploring the structure and components of ISQM 1 and insight into their iterative and integrated nature; and
- A discussion of a firm’s risk assessment process outlining key steps, including a deep dive into:
- establishing quality objectives;
- identifying and assessing quality risks;
- designing and implementing responses; and
- identifying information that may indicate a need to add or modify quality objectives, quality risks or responses, such as due to change or deficiencies.
The webinar also explained how a firm’s risk assessment process can be scaled to meet the unique circumstances of individual firms.
How impactful was this first session? Participant survey results note:
- 88% of webinar respondents say the information and content presented was very valuable to their work;
- 84% believed that participating in this webinar put them in a better position to understand the firm's risk assessment process; and
- Most notably, 71% of webinar respondents now feel more confident applying the suite of quality management standards in practice.
If you missed our fist webinar, you can learn more about the quality management webinar series—and register—on the IAASB website. We hope to see you at the next webinar on July 29!
For access to the Spanish translation of the PowerPoint presentation please click here.
[IFAC would like to thank the Instituto de Censores Jurados de Cuentas de España for their kind translation of this presentation.]