FRC revises UK quality management standards

News types: Codes and Standards Announcements, Operating Procedures, Policies and Responsibilities, Publications, Statements

Published: 9 July 2021

The Financial Reporting Council (FRC) has today issued revised quality management standards for an audit firm’s responsibilities to design, implement and operate a system of quality management:

• 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
• Conforming Amendments to ISAs (UK) Arising from Quality Management Standards

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 is available here .

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