As many audit firms will already be aware the International Standard on Quality Management 1 (ISQM 1) became effective on 15 December 2022. This is the implementation date from when they must document their System of Quality Management (SoQM).
As part of such a system, audit firms must assess the quality of any system components which have been sourced from external third parties.
Part of the confirmation process will involve the collection of statements from these external parties known as Supplier Quality Statements (SQS). We are only concerned here with those suppliers that may impact on audit quality such as (the list is not necessarily comprehensive) the following:
- training organisations providing CPD;
- providers of audit tools such as audit programmes and financial statements checklists;
- professional bodies;
- software and IT support suppliers;
- providers of technical checklists;
- technical advisers and
- audit file reviewers.
The collection of these Supplier Quality Statements will form part of each firm’s System of Quality Management (SoQM) and will need to be updated subsequently at regular intervals.
Have you sourced all the Supplier Quality Statements you need?
For those of you still in the process of ISQM 1 implementation, please see our new ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please call or e-mail John McCarthy FCA or e-mail him at firstname.lastname@example.org.
We typically tailor training and brainstorming sessions to suit your firm’s unique requirements.
Publications and AML webinar:
- The ISQM TOOLKIT 2022 is available to purchase here.
- See our latest Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- Also we have an updated AML webinar (March 2022) available here, which accompanies the AML Manual. It explains the current legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- To ensure your letters of engagement and similar templates are up to date visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.