Proposed Quality Management Standards – what are they and how will they impact your Practice?

Standards on quality control for audit, assurance and related services are proposed to be replaced with a suit of quality management standards. Firms are advised to understand the proposals, share their views with CPA Australia and prepare for the likely changes. The International Auditing and Assurance Standards Board (IAASB) has proposed revised standards on quality management for firms (ISQM 1) and audit engagements (ISA 220), and a new standard for engagement quality reviews (ISQM 2). These standards reflect a shift from prescribed policies and procedures to a risk-based approach to achieving quality objectives. Hear from Len Jui, IAASB member, about the proposals and Jessie Wong, KPMG partner, about the implementation challenges.

Host: Claire Grayston, Policy Adviser, Audit & Assurance

Guest speakers: Len Jui, IAASB Member; Jessie Wong, CPA Australia External Reporting Centre of Excellence Chair and KPMG Partner

Comments due to CPA Australia by: Monday 17 June email to submissions@cpaaustralia.com.au

Or IAASB by Monday 1 July 2019

Further Resources:

Highlights:

  • 0.31 Introduction
  • 2.11 Why did the IAASB develop quality management standards to replace the quality control standards?
  • 3.43 Scope of the three proposed quality management standards
  • 5.28 Approach to quality management
  • 6.36 Framework for quality management
  • 8.54 Components of quality management compared to current elements of quality control
  • 11.48 How should firms prepare for implementing the standards?
  • 14.27 What will be the impact on small-medium practices?
  • 17.13 Should firms start preparing now? First steps firms need to take to address the proposals
  • 19.30 Engagement quality reviews (ISQM 2)
  • 26.11 Quality management for audit engagements (ISA 220)
  • 31.17 Will the proposed standards have the desired impact on audit quality?
  • 33.35 Feedback from members of CPA Australia
  • 35.43 Regulators’ expectations regarding firms setting appropriate quality objectives
  • 37.00 Implementation timetable challenges for SMPs
  • 41.49 Advice for SMPs
  • 44.16 IAASB are seeking feedback on the effective date and scalability for SMPs




audio Subscribe on iTunes

Play Listen to more episodes