IAASB First-time Implementation Guide for ISQM 1 Updated and Reissued

04 October 2021
Accounting
South African Accounting Academy

This version supersedes the June 2021 version.

The update was made in response to questions the IAASB received on the illustrative table on page 89 of the original guide illustrating some scenarios relating to the evaluation of the firm’s system of quality management and related possible conclusions in accordance with paragraph 54 of ISQM 1.

The table was intended to illustrate how the combination of various factors outlined in the table may affect what conclusion is reached. It was not intended to be definitive on the conclusions reached in each circumstance.

Given a number of questions from various sources about how to interpret the table, the following revisions were made to provide further context and clarification when evaluating the system of quality management:

The section “How the Evaluation is Undertaken, Including What Information is Considered” (pages 89–92) was revised.
Limited conforming changes were made to the section “Evaluate the Remedial Actions, and if Necessary, Take Further Action” (page 79).

Click here to download the updated guide:

https://www.ifac.org/system/files/publications/files/IAASB-ISQM-1-first-time-implementation-guide-quality-management_0.pdf

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