IFAC offers quality management guidance for small audit firms

The International Federation of Accountants released the second installment Wednesday of its advice for implementing the International Auditing and Assurance Standards Board's quality management standards.

Installment Two: Developing a Detailed Implementation Plan offers a step-by-step approach to identifying a firm's quality objectives; completing its quality risk assessment process; identifying existing, or creating new, responses to those quality risks; and implementing, documenting, and communicating their system of quality management.

The guidance addresses the eight components of the IAASB's International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements. It also offers a case study to demonstrate the transition from the older International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements. It includes multiple documentation aids covering independence, acceptance, and continuance of clients and engagements, resources, and outside consultation, as well as a sample checklist for engagement quality reviews.

The earlier Installment One of the series dealt with the mindset change required by the new standards and the shift in focus from quality control to quality management. 

Installment Three is expected to be released later this year and will discuss monitoring and remediation. For additional guidance, visit ifac.org/qualitymanagement.

Courtesy of IFAC