ISQM and quality management for audit firms

An effective system of quality management under ISQM 1

Quality management is a central part of the work carried out by audit firms. With the introduction of ISQM 1, the requirements for a risk-based system of quality management have been strengthened, and many audit firms experience that quality management now plays a larger role – both in the design, operation and documentation of the system.

We assist audit firms in establishing, developing and maintaining quality management systems that comply with the requirements of ISQM 1 while also working effectively in day-to-day practice.

Establishment and development of a quality management system under ISQM.

Establishing a quality management system under ISQM 1 requires both professional expertise and a practical understanding of how audit firms operate in their daily work. The system must not only comply with the formal requirements – it must also function effectively in practice and support efficient operations.

We assist audit firms in establishing or further developing a system of quality management tailored to the firm’s size, organisational structure and client portfolio. Our focus is to create a quality management system that is practical and manageable in day-to-day operations while fully complying with applicable requirements.

We build on your existing processes and assist in structuring and documenting your system of quality management, ensuring that it is both useful internally and robust in connection with external quality inspections.

Annual evaluation of the system of quality management

Audit firms must evaluate their system of quality management at least once a year to assess whether it operates as intended. The evaluation must be documented and form the basis for any necessary improvements to the system.

We assist audit firms in carrying out the annual evaluation in a structured and practical manner. The objective is both to ensure compliance with the requirements of ISQM 1 and to identify areas where quality management can be strengthened or improved.

The evaluation is based on the firm’s experience from the past year, including results from monitoring activities, quality inspections and other relevant observations.

Quality inspections and external investigation cases

Audit firms may be selected for quality inspection by the Danish Business Authority or, in certain cases, become subject to an investigation. In such situations, it can be beneficial to have an experienced advisor who can assist with professional assessment, structuring of documentation and dialogue with the authorities.

We assist audit firms both before, during and after an external quality inspection. Our focus is to create clarity around the case, ensure that relevant matters are properly addressed, and support a constructive dialogue with the inspector.