Continuing our series of blogs where we looked at the scalability of the ISQM(Ireland) 1, this week we look at the question: ‘What are the Main Elements Within a System of Quality Control (SoQM)?
Establishing the SoQM
ISQM 1.6 requires each audit firm to establish and maintain a system of quality control (SoQM) which includes policies and procedures addressing each of the following six processes:
- Governance and leadership;
- Relevant ethical requirements;
- Acceptance and continuance;
- Engagement performance;
- Resources; and
- Information and communication.
There are two other elements of the SoQM that we have covered in our other blogs –
- The risk assessment and responses;
- The monitoring/remediation stage which includes Root Cause Analysis as a key component.
Each audit firm must have written policies and procedures which ensure that its independence and objectivity cannot be jeopardised by the intervention of any partner or member of staff in the carrying out of an audit engagement.
As well as the above policies/procedures, each audit firm must also have:
- Sound administrative and accounting procedures;
- Internal quality control mechanisms;
- Effective procedures for risk assessment; and
- Effective control and safeguard arrangements for information processing
For more assistance 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 email@example.com
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.