Audit quality isn’t just about the team on site — it begins with how an audit firm is managed. That’s the idea behind International Standards on Quality Management (ISQM 1 & 2), which South Africa adopted through the IRBA. From December 2022, every registered firm must maintain a comprehensive system of quality management. Here’s what that means for businesses choosing an auditor.
What Is ISQM?
- A framework requiring audit practices to identify and assess quality risks across leadership, ethics, client acceptance, resources, and monitoring.
- Firms must design controls, evaluate them regularly, and document results.
- ISQM 2 adds detailed rules for engagement quality reviews (EQRs) on higher-risk audits
Why It Benefits Clients
When your auditor runs on ISQM principles, you gain:
- Consistency: policies make sure every file is handled to the same high bar.
- Better staffing: firms must assign suitably skilled, independent staff.
- Early warning: internal monitoring spots issues before they affect your report.
- Confidence for boards and funders: quality oversight reduces the chance of surprises.
Questions to Ask Your Auditor
- How has your firm embedded ISQM into day-to-day work?
- Do you perform annual risk assessments on all clients?
- Who performs engagement quality reviews on my audit?
- What training do your teams undergo to maintain quality?
SC Audit’s Commitment
SC Audit has implemented ISQM across leadership, human resources, technology and monitoring. For you, that means a boutique-sized team with big-firm quality controls — ensuring your financial statements are scrutinised with independence, rigour and efficiency.
Discover how our quality-first approach can make your next audit seamless. Schedule a consultation with our partners today. SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.