AUDIT PRACTICE ADVISORY

ISQM Quality Management for Audit Practices

Design, implementation and monitoring of a system of quality management under ISQM 1 (International Standard on Quality Management), built for audit and assurance practices that want quality to be a working system, not a binder on a shelf.

StandardISQM 1 & ISQM 2
DeliveryProject-based or ongoing
Best forAudit & assurance firms

Overview

ISQM 1 changed what regulators and reviewers expect from an audit practice. Quality is no longer demonstrated through a static policy manual; it must be managed as a live system: the firm identifies its own quality risks, designs responses to those risks, monitors whether the responses are working, and remediates deficiencies when they are found. For many small and mid-sized practices, that shift from a compliance document to an operating system of quality management is the hardest part.

LeapWise supports audit and assurance practices through the full ISQM lifecycle: performing the firm-level risk assessment, designing the system of quality management, drafting the supporting policies and documentation, implementing engagement quality review arrangements where ISQM 2 applies, and building the monitoring and remediation process that keeps the system credible year after year. Our team brings direct Big 4 and ICAP-environment experience, so the system we build reflects how quality reviews are actually conducted, not just how the standard reads.

Who Needs This Service

  • Audit practices implementing ISQM 1 for the first time
  • Firms whose existing quality manual predates ISQM and needs conversion
  • Practices preparing for a regulatory or institute quality review
  • Firms that received review findings and need structured remediation
  • Sole practitioners and small firms needing a right-sized quality system
  • Growing practices formalising engagement quality review under ISQM 2

Our Approach

01

Risk Assessment

We facilitate the firm-level quality risk assessment across the ISQM 1 components, tailored to your practice size and client portfolio.

02

System Design

Quality objectives, risks and responses are mapped into a documented system of quality management your team can actually operate.

03

Implementation

Policies, templates and engagement-level procedures are rolled out, with training so the system changes behaviour, not just paperwork.

04

Monitor & Remediate

A monitoring and remediation cycle is established, including the annual evaluation the standard requires of firm leadership.

Key Benefits

  • A system of quality management that stands up to institute and regulatory review
  • Quality risks identified and addressed before a reviewer finds them
  • Documentation proportionate to your practice, not a copied template
  • Clear roles and accountability for quality within the firm
  • A working monitoring cycle instead of a once-a-year scramble
  • Stronger positioning when tendering for larger or regulated clients

Frequently Asked Questions

Does ISQM 1 apply to small practices and sole practitioners?

Yes, ISQM 1 applies to firms performing audits, reviews and other assurance engagements regardless of size. The standard is scalable, and our role is to right-size the system so a small practice is not carrying documentation built for a large firm.

We already have a quality control manual. Is that enough?

Usually not on its own. ISQM moved from static quality control to active quality management: a risk assessment process, monitoring, and remediation. We convert existing manuals into a compliant, working system rather than starting from zero.

What is the difference between ISQM 1 and ISQM 2?

ISQM 1 governs the firm’s overall system of quality management. ISQM 2 deals specifically with engagement quality reviews: when they are required, who can perform them, and how they are documented. We advise on both, including practical arrangements for smaller firms.

Can you help after a quality review has already raised findings?

Yes. Remediation engagements are common: we analyse the findings, trace them to root causes in the system, and implement corrections with evidence a follow-up review can verify.

Ready to put ISQM on a working footing?

Reach out for a direct conversation about your practice, no obligation, no generic sales pitch.