ISQM: Updated Requirements for Audit Practice Quality Management

15.12.2022

The LUCAS audit practice is pleased to announce the successful completion of transition from the ISQC1 standard to the new ISQM – International Quality Management Standards.

The new standards issued by the IAASB introduce a new approach to the quality management system in auditing and provide a wider framework for it. Unlike the ISQC1 that had been in operation since 2012 and was focused on quality control procedures during engagements, the new ISQM focus on proactive early identification and responding to quality risks.

ISQM does not require the establishment of a quality control system that meets specific template criteria. The self-assessment of the quality-related risks that are specific to each individual audit practice is the basis for the development of its unique quality management system. So intracompany quality management systems in different firms can now differ from each other much more than it was possible before.

During the transition, new policies and procedures were developed to replace the old edition of LUCAS internal standards and take into account the new requirements for auditing practices established by ISQM.

The LUCAS internal quality control group pays constant attention to monitoring and improving processes related to the audit quality, and the transition to new standards is a significant step in the development of our audit practice.