INTRODUCTION
The design and implementation of a firm’s system of quality management (SQM) under ISQM 1 has been effective since 15 December 2022. ISQM 1 (together with ISA 220 (revised) and ISQM 2) strengthens and modernises an audit firm’s approach to quality management by addressing an evolving and increasingly complex audit ecosystem, including growing stakeholder expectations and a need for quality management systems that are proactive and adaptable. The standard encourages firms to design a system of quality management that is tailored to the nature and circumstances of the firm and engagements performed. ISQM 1 which replaces ISQC 1, applies to all firms that perform engagements under the IAASB’s international standards.
