The AUASB today released three revised Quality Management Standards. The standards promote a robust, proactive, scalable, and effective approach to quality management and mark a significant evolution of the existing quality control standards.
The standards place greater responsibility on firm leadership for continuously improving the quality of their engagements and remediating when deficiencies are found. When effectively implemented, the standards should help ensure that a commitment to quality is at the heart of firm strategy and operations.
The suite of standards includes:
• ASQM 1, Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements;
• ASQM 2, Engagement Quality Reviews; and
• ASA 220, Quality Management for an Audit of a Financial Report and Other Historical Financial Information.
The standards become effective on 15 December 2022.
The AUASB has also developed Bases for Conclusions to support the new standards, which are available [here].
Additional information about the new Quality Management Standards and associated implementation support materials will be developed over the course of 2021.