Since the International Standard on Quality Management (ISQM) 1 came into effect on 15 December 2022, audit firms have been required to operate a continuous monitoring and remediation process.

For some smaller and medium sized firms, finding a process that works within budgets and resource constraints has been a challenge. But even firms that have an operational SoQM shouldn’t rest on their laurels.

In ICAEW article ISQM 1 – tools for the journey, Amelia Pickard, a technical manager in ICAEW’s Audit and Assurance Faculty, says, “The SoQM should be continuously reviewed and updated, where necessary, to ensure that it remains effective.”

Neil Lawrinson, a reviewer in ICAEW’s Quality Assurance Department (QAD), emphasised this point at our virtual event ISQM 1 – maintaining momentum and feeling safe, which you can watch on demand. He says, “The monitoring and remediation process is a continuous circle. It’s important that findings from monitoring activities are evaluated to identify deficiencies, leading into root cause analysis, then design and implementation of remedial actions, with post-implementation review of those remedial actions. Then around you go again, maintaining momentum.” Read more in ISQM 1 monitoring and remediation.

To help build your quality management confidence, you’ll find a host of CPD-verifiable content on the Quality management in audit firms hub and outlined below.

ISQM 1 support

• For smaller firms grappling with ISQM 1 implementation, Jez Williams and Peter Herbert share some problem-solving pointers in Progressing ISQM 1 implementation in independent firms.
• Find top tips improve your firm’s annual SoQM appraisal in Enhancing your firm’s annual SoQM evaluation.
• Do you have quality management fatigue? Here’s how to overcome it.
• Engagement quality review for smaller practices provides tips for smaller businesses.
• This technical helpsheet provides advice to help firms comply with the documentation requirements for ISQM 1.

Deep dive into root cause analysis

• Want to get started with root cause analysis? Here’s how.
• Find out how root cause analysis software can help you meet the challenges of ISQM 1.
• Gain practical tips on ways to improve your root cause analysis.