The Draftworx ISQM Implementation  Hub

Overview of the programme

The accounting profession uses the term ’quality management’ to describe the measures taken by a practice to comply with professional and legal requirements, helping to deliver services of a consistently high standard of quality and service to their clients. The new ISQM 1 strengthens firms’ systems of quality management through a robust, proactive and effective approach to quality management.

Quality management is a cornerstone of the professional standards and related legislation. Without it, there would be an increased risk of non-compliance, and this would pose a serious risk to the professional accountant, the firm, their clients, the accounting profession, as well as the financial and economic markets.

The new risk-based approach to quality management requires that all professional accountants that perform services under the international standards implement a quality management system responsive to their specific risks.

The Draftworx Quality Management Implementation Hub has been developed in response to the requirements of the new ISQM 1. This manual includes guidance on the risk-based approach and pro-forma policies and procedures as well as resources to respond to most risks. These policies and procedures must be tailored to form the basis of your firm’s quality management system. In some cases, additional policies and procedures may need to be added. This manual focuses on quality management, ethics and independence requirements at the firm level. It may also be advisable to refer to other material to complement the documents in this manual and assist with engagement level working papers, for example your firm’s own working paper methodologies.

More specifically, the manual contains the following:

• Part 1: Establishing a System of Quality Management
• Part 2: The Firm’s risk assessment process
• Part 3: Governance and leadership
• Part 4: Ethical and Independence requirements
• Part 5: Policies and procedures for the acceptance and continuance of client relationships
• Part 6: Human, Technological and intellectual Resources policies and procedures
• Part 7: Policies and procedures addressing engagement performance
• Part 8: Monitoring and Remediation Process
• Part 9: Complying with the professional code of conduct regarding ethics and independence
• Part 10: Independence requirements for audit and review requirements other than Public Interest Entities
• Part 11: Independence requirements for audit clients who require statutory audits in terms of the of the Companies Act 71 of 2008
• Part 12: Independence requirements for independent reviews
• Part 13: Independence requirements for audit clients that are Public Interest Entities
• Part 14: Responding to Non-Compliance with Laws and Regulations
• Part 15: Reportable irregularities
• Part 16: Tax practice
• Part 17: Definitions
• Part 18: Resources for each section

For your convenience, this manual is provided to you in electronic format for easy access and reference by way of an interactive index. All specimen documentation is therefore in electronic format for tailoring and filing. We strongly recommend that you ensure that the manual is tailored to your firm’s requirements, to train your staff on the relevant details and implement this manual within the firm.