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Quality Control - IAASB

Date recorded:

At its meeting on March 12-16, 2018, the IAASB discussed and supported the proposed exposure draft of ISQC 1 (Revised) including its structure and the objective. The Board discussed the length of the standard and the need for additional guidance, and encouraged the Quality Control Task Force to analyze the application material, develop additional guidance addressing the spectrum of firms, and explore positioning guidance outside of the standard (including the appendix).

In addition to suggesting a new term for the quality risk assessment process, the Board suggested further refinement of the requirement and definitions in relation to the identification and assessment of quality risks. The Board recommended that the quality risk assessment process should be applied to monitoring and remediation, which would result in a restructure of the component.

The Board agreed that ISQC 1 should strongly encourage firms to communicate, as appropriate, with external stakeholders about the firm’s system of quality management (such as through transparency reports). In relation to monitoring and remediation, the Board suggested directly addressing quality objectives and quality risks in the framework for the identification of deficiencies and in the definition of deficiencies.

The Board discussed how to address concerns raised by certain stakeholders who are seeking requirements specifically for networks, and encouraged the Quality Control Task Force to further explore these concerns and how best they can be addressed. In June 2018, the Quality Control Task Force plans on presenting further proposals on networks and monitoring and remediation, with a final version of the proposed exposure draft presented to the Board for approval in September 2018.

Review the summary, including the podcast, on the IAASB's Web site.

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