In December 2020, the International Auditing and Assurance Standards Board (“IAASB”) released three new and revised Quality Management Standards that enhance and modernise the firm’s approach to quality management:
- International Standard on Quality Management (ISQM), 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or other Assurance or Related Services Engagements;
- ISQM 2, Engagement Quality Reviews; and
- International Standard Auditing (ISA) 220 (Revised), Quality Management for an Audit of Financial Statements.
In July 2021 the Financial Reporting Council (FRC) in the UK issued their version, applicable to audits in the UK and in Ireland IAASA followed suit and issued the standards applicable in Ireland in December 2021.
We have published a new Technical Alert and two webpages on these quality management standards which give an outline of the scope of the standards and will help firms understand and apply these new and revised standards. These also direct members to additional sources of information and guidance on the implementation of the standards.