FRC revises UK quality management standards
The Financial Reporting Council (FRC) has issued revised quality management standards for an audit firm’s responsibilities to design, implement and operate a system of quality management.
The standards are as follows:
- International Standard on Quality Management (UK) 1 Quality Management For Firms That Perform Audits Or Reviews Of Financial Statements, Or Other Assurance Or Related Services Engagements
- International Standard on Quality Management (UK) 2 Engagement Quality Reviews
- International Standard on Auditing (UK) 220 (Revised July 2021) Quality Control For An Audit Of Financial Statements
These standards introduce a new quality management approach that is focused on proactively identifying and responding to risks to quality. This new approach requires a firm to customise the design, implementation and operation of its system of quality management based on the nature and circumstances of the firm, using an integrated approach that reflects upon the quality management system as a whole.
The standards are effective for audits of financial statements for periods beginning on or after 15 December 2022. Early adoption of the revised standards is strongly encouraged.
The feedback statement and impact assessment are available here.