The Quality Management webinar series, hosted by the IAASB in collaboration with IFAC, takes a deep dive into aspects 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. The webinar series focused on: Webinar One: All You Need to Know about the Firm’s Risk Assessment Process Webinar Two: Resources: Expectations for Firms and Engagement Partners Webinar Three: What’s New for Firms’ Monitoring and Remediation Processes Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System ISQM 1 is part of the IAASB’s suite of quality management standards. Firms are required to have systems of quality management designed and implemented in accordance with ISQM 1 by December 15, 2022. Learn more about the quality management standards at: iaasb.org/quality-management

1. ISQM 1, Quality
Management for
Firms:
Bringing it all
Together: Exploring
all the Components of
a Quality Management
System
Webinar Series Part 4

2. The Focus of Today’s Webinar
Page 2
• Assigning responsibilities
• Governance and leadership
• Relevant ethical requirements
• Information and communication
• Network requirements or network services
• Evaluating the SOQM
• Documentation

3. Assigning Responsibilities
Page 3
Appropriate
experience,
knowledge, time,
influence and
authority
Ultimate responsibility and accountability for the SOQM
• CEO / managing partner / managing board of partners
Operational responsibility for the SOQM
Operational responsibility for:
• Compliance with independence requirements
• The monitoring and remediation process
Operational responsibility for other specific
aspects, as determined by the firm

4. Governance and Leadership
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Resource needs –
planning, obtaining,
allocating and
assigning
Organizational structure
and assignment of
roles, responsibilities
and authority
Commitment to quality through culture
• Firm’s role in serving the public
interest
• Professional ethics, values and
attitudes
• Responsibility of all personnel
• Strategic decisions and actions
Leadership demonstrates a
commitment to quality through
actions and behaviors
Leadership responsible and
accountable for quality

5. Relevant Ethical Requirements
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Scope of relevant
ethical requirements
Relevant ethical
requirements to which
the firm and the firm’s
engagements are
subject
The firm and its personnel Others
Includes the network, network
firms, individuals in the network or
network firms, or service providers
• Understand the relevant
ethical requirements that
apply to them
• Fulfill their responsibilities
• Understand the relevant
ethical requirements
• Fulfill their responsibilities

6. Information and Communication
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Communication with other external
parties
• Law, regulation or professional
standards require communication
externally
• Firm performs audits of financial
statements of listed entities
(communicate to those charged
with governance)
• Communication is otherwise
needed to support external
parties’ understanding of the
SOQM
Information system Culture: Responsibility
to communicate
Exchange information
throughout the firm
Communicate to
external parties

7. Network Requirements or Network Services
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Understand the network
requirements/services Understand firm’s
responsibilities for actions to
implement network
requirements/services
Determine how network
requirements/services are
relevant, how to take into
account and how to implement
Evaluate whether/how need to
adapted or supplemented to
be appropriate for use
Other matters covered:
• Monitoring activities undertaken by the network on firm’s SOQM
• Monitoring activities undertaken by the network across network firms
• Deficiencies in network requirements or network services

8. Evaluating the SOQM
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Considerations:
• Severity and
pervasiveness of identified
deficiencies, and effect on
achievement of objectives
of SOQM
• Whether remedial actions
have been designed and
implemented, and whether
remedial actions taken up
to time of evaluation are
effective
• Whether effect of identified
deficiencies have been
appropriately corrected
SOQM provides reasonable
assurance that objectives of
SOQM are being achieved
SOQM does not provide
reasonable assurance that
objectives of SOQM are
being achieved
Except for severe but not
pervasive deficiencies,
SOQM provides reasonable
assurance that objectives of
SOQM are being achieved
Evaluate SOQM
• At a point in
time
• Perform at least
annually
Based on
evaluation,
conclude 1, 2 or 3

9. Documentation
Page 9
Network requirements or network
services
Basis for evaluation of the SOQM
Monitoring and remediation - e.g.,
evidence of monitoring activities,
evaluation of findings/deficiencies,
root cause and remedial actions
Quality objectives
Quality risks
Responses
Documentation
principles
Support consistent understanding
of SOQM by personnel, including
understanding of roles and
responsibilities
Support consistent
implementation and
operation of responses
Provide evidence of design,
implementation and operation of
responses, to support evaluation of
SOQM

10. Questions

11. • Publications and published videos
– First time implementation guides
• Focus on key areas and more complex aspects of the standards
• Highlights key changes from extant standards
– Fact sheets
– Video: Initial implementation efforts
• Webinars
– Presentations and recordings on IAASB webpage:
https://www.iaasb.org/publications/quality-management-webinar-series
Implementation Support
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Webinar 1:
All you need to know
about the firm’s risk
assessment process
Webinar 2:
Resources: expectations
for firms and engagement
partners
Webinar 3:
Resources: expectations
for firms and
engagement partners
Webinar 4:
Bringing it all Together:
Exploring all the
Components of a Quality
Management System

12. How to Follow Us
Register on our webpage and subscribe to our eNews
www.iaasb.org
Go to our Quality Management webpage:
www.iaasb.org/quality-management
Follow us on social media
@IAASB_News
@International Auditing and Assurance Standards Board
@International Auditing & Assurance Standards Board
Page 12

13. www.iaasb.org
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