ISQM 1 system of quality management
ISQM 1 requires a firm to design, implement and operate a risk-based system of quality management for its relevant engagements. The firm establishes quality objectives, identifies and assesses quality risks, designs responses and monitors and remediates deficiencies.
Worked example
A firm identifies insufficient specialist expertise as a quality risk and develops training and access to appropriate experts.
Common mistake
ISQM 1 is a firm-level system; an individual engagement’s quality responsibilities also involve ISA 220 (Revised).
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |