IFAC guide helps smaller firms monitor quality management systems

October 2, 2024

The final part of an International Federation of Accountants publication addresses the monitoring of QM systems and related remediation.

The International Federation of Accountants (IFAC) published the third and final part in a series of reports designed to assist smaller firms with implementation of International Auditing and Assurance Standards Board (IAASB) quality management standards.

Installment Three: Monitoring and Remediation provides practical tips and guidance related to annual evaluation of a quality management (QM) system built in response to the IAASB's suite of QM standards that became effective as of 15 December 2022.

The new publication includes multiple documentation aids covering cyclical inspection of completed audits and other engagements, as well as a monitoring and remediation report to assist practitioners. It also continues the case study introduced in previous instalments of the series.

Installment Three further addresses:

The factors driving the nature, timing, and extent of the monitoring activities;

The scope and outcome of monitoring activities to establish a feedback loop for continuous improvement;

Establishing a framework for evaluating findings, identifying deficiencies, and evaluating the severity and pervasiveness of deficiencies, which includes investigating root causes;

Responding to identified deficiencies and communication about monitoring and remediation; and

The ongoing evaluation of the system of quality management.

[Financial Management Magazine]