Frequency of Reviews

The Guidance Note on the Review of the System of Quality Management under ISQM 1, issued by the Accountancy Board, outlines the essential requirements for statutory auditors and firms to establish, implement, and evaluate their quality management systems in accordance with the International Standard on Quality Management 1 (ISQM 1), which took effect on December 15, 2022. This standard mandates that firms design a comprehensive system of quality management applicable to audits, reviews of financial statements, and other assurance services. The Guidance Note specifically focuses on defining the review cycle necessary for monitoring the effectiveness of these systems, ensuring they are relevant, adequate, and effectively implemented.