FRC refreshes guidance on ISQM compliance

The Financial Reporting Council (FRC) has issued guidance for audit firms on eligibility criteria related to implementation of quality management rules and audit performance

As a result the quality management standards, ISQM (UK) 1 and ISQM (UK) 2, have been reissued with updated footnotes to reflect this guidance.

The audit regulator stressed that when appointing a key audit partner, the firm must also consider the objectives in ISQM (UK) 1 for engagement partners to have appropriate competence and capabilities. This must include allowing sufficient time to consistently perform quality engagements and that the engagement partner is able to comply with the requirements in ISA (UK) 220, Quality Control for an Audit of Financial Statements.

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