Following public consultation, IAASA has today (21 December) issued:
- International Standard on Quality Management (‘ISQM’) (Ireland) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
- International Standard on Quality Management (Ireland) 2, Engagement Quality Reviews; and
- International Standard on Auditing (‘ISA’) (Ireland) 220 (Revised December 2021), Quality Management for an Audit of Financial Statements.
They will replace International Standard on Quality Control (Ireland) 1 (Revised November 2020) and ISA (Ireland) 220 (Revised November 2020).
These standards introduce a new quality management approach that is focused on proactively identifying and responding to risks to quality. The new approach requires a firm to customise the design, implementation and operation of its system of quality management based on the nature and circumstances of the firm and the engagements it performs. It also requires firms to transition to an integrated approach that reflects upon the system of quality management as a whole, rather than individual elements. The benefits of this new approach include:
- A system that is tailored to the nature and circumstances of the firm and the engagements it performs;
- A proactive response by the firm to changing circumstances and proactively managing or mitigating risks, and promoting continual improvement and responsiveness;
- Increased emphasis on monitoring the system as a whole and timely and effective remediation; and
- Improved integration of the components of the system of quality management.
The new standards are effective as of 15 December 2022 and apply as follows:
- ISQM (Ireland)1 must be designed and implemented by 15 December 2022. The evaluation of the system of quality management required by paragraphs 53-54 must be performed within one year following 15 December 2022
- ISQM (Ireland) 2 Effective for audits of financial statements for periods beginning on or after 15 December 2022 and other assurance or related services engagements beginning on or after 15 December 2022
- ISA (Ireland) 220 Effective for audits of financial statements for periods beginning on or after 15 December 2022
The standards are on IAASA's website.
LOADING...