Quality management

Implement new quality management standards in your practice

Upcoming live virtual workshop

Join us live online on 5 December for a session on "Understanding and implementing new Quality Management Standards for audit firms" where we will have an in depth look into the objective and structure of a System of Quality Management (SoQM) as required by ASQM1/PES 3.

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A suite of new and revised standards has been introduced for all practices in Australia and New Zealand, changing from a system of quality control to system of quality management. This new system strengthens and modernises how practices’ approach quality management in line with evolving stakeholder expectations.

Here you can find the tools and resources you need to update the quality system in your practice. If your practice undertakes both assurance and non-assurance engagements, you may choose to extend the requirements that apply to assurance engagements to non-assurance engagements.

Assurance engagements

The standards are known as ASQM 1 and ASQM 2 in Australia and PES 3 and PES 4 in New Zealand.

Practices that perform audits or reviews of financial statements, or undertake other assurance engagements or agreed-upon procedures engagements are required to design, implement and operate a system of quality management using a risk-based approach.

This new system needs to be in place by 15 December 2022. Practices are also required to establish a monitoring and remediation process, with the first evaluation occurring by 15 December 2023.

2022 Audit and Accounting Conference session (Australia)

Hear from a panel of experts on the key elements of the quality management standards for assurance practices and delve into the common questions members are asking.

Watch nowAbout 2022 Audit and Accounting Conference session (Australia)

Non-assurance engagements  

The standards are known as APES 320 in Australia and PS-1 in New Zealand.

If your practice does not perform assurance engagements, these standards have been updated to achieve high-level alignment with the standard for practices that do perform assurance engagements. The key difference is risk is addressed through the standards’ requirements rather than a separate risk assessment.

You will need to review your existing quality system for the standards’ updated requirements and make any necessary amendments. This revised system needs to be in place by 1 January 2023 for Australian practices and 15 December 2022 for New Zealand practices.

Sharing Knowledge webinar (New Zealand)

Hear from us on how to implement PS-1 in non-assurance practices in New Zealand.

Watch nowAbout Sharing Knowledge webinar (New Zealand)

Overview of the quality management standards

Dive deeper into the changes to managing quality

Read Acuity article

Fact sheet (Australia)

This members-only fact sheet outlines how the standards will impact your practice in Australia, what standards apply and when the changes come into effect.

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IAASB standards

Learn more about the standards and access resources from the IAASB

Read more

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