Let’s Talk About Quality and What it Means for Your Practice
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If you’ve been in the accounting world for even a short while, you know that quality is everything. Whether you’re helping clients with their financial statements or tax matters or offering assurance services, people rely on you to be accurate, dependable, and ethical.
But let’s be honest: keeping that standard up every single time across every job and every client? That’s not always easy. That’s exactly why the International Standard on Quality Management (ISQM 1) was created.
So, What Is ISQM 1 (and Why Should You Care)?
ISQM 1 stands for International Standard on Quality Management 1. Sounds formal, right? But in practice, it’s actually pretty straightforward.
It’s a new standard developed to help accounting firms—big or small—build strong, practical systems to manage quality. Unlike the older checklist-style approach, ISQM 1 is about being proactive. It helps you think ahead, identify risks, and ensure your practice always delivers its best work.
Why Quality Management Matters (More Than Ever)
Let’s break it down: Quality isn’t just about ticking the right boxes or pleasing the regulators. It’s about earning trust from your clients, your team, and the public.
Here’s what good quality management brings to your firm:
Consistency: You can rely on every job being done right, regardless of who handles it.
Compliance: You meet the expected standards—and protect your reputation in the process.
Fewer mistakes: By spotting risks early, you can avoid costly errors before they happen.
Smarter workflows: When quality is baked into your processes, things just run smoother.
What Makes ISQM 1 Different?
What’s great about ISQM 1 is that it’s built around real-world challenges. It focuses on eight practical areas that matter to your firm:
Assessing risks
ISQM 1 starts with a simple question: What could go wrong? Whether it’s missed deadlines, staff shortages, or a lack of client information, identifying these risks upfront helps you put controls in place early. Every firm has its own challenges, so this step ensures your quality system is tailored to your actual risks—not just theoretical ones.
Leadership commitment
Quality starts at the top. Your team will follow your lead. That means setting expectations, providing support, and creating a culture where quality isn’t optional—it’s part of the firm’s DNA.
Ethics & Independence
ISQM 1 helps you keep ethics front and centre, where they belong. These aren’t just tick-boxes—they’re essential to trust and credibility. ISQM 1 makes sure your team understands the ethical rules that apply and stays independent in every engagement. It helps prevent conflicts of interest and keeps professional integrity front and centre.
Choosing the right clients
Sometimes, saying no is the smartest move for long-term quality. Not every client is the right fit. ISQM 1 encourages firms to step back and ask: Can we serve this client well and meet our quality obligations? This helps you avoid risky or inappropriate engagements that could damage your reputation—or lead to problems down the line.
Delivering quality work
It’s about planning well, assigning the right people, and reviewing thoroughly. This is where the rubber meets the road. ISQM 1 focuses on getting each job done right, from planning through execution to review. It emphasises clear roles, accountability, technical competence, and proper documentation. It’s all about delivering high-quality work consistently.
Having the right tools
Whether it’s people, time, or tech—resources matter. Even the best systems fall short without the right tools. ISQM 1 asks: Do you have enough people, time, training, and technology to get the job done properly? It’s about matching resources to responsibilities so your team is set up for success—not stress.
Clear communication
Everyone should know their role in delivering great work. People need to know what’s expected—and why. ISQM 1 promotes clear, open communication within your firm and, where needed, with external parties. Everyone should understand their role in maintaining quality, and information should flow easily and reliably.
Fixing what’s not working
Regular checks help you catch issues early and improve over time. No system is perfect. ISQM 1 requires ongoing monitoring to spot problems early and fix them before they grow. Whether it’s reviewing files, getting feedback, or responding to complaints, the goal is continuous improvement—learning from mistakes and getting better over time.
My Practice is Small – What Can I Do?
You can tailor your quality system to match your practice’s size and services. ISQM 1 allows you to build a quality system that fits your firm’s size and services. If you’re running a small practice, your approach will look very different from that of a big international firm—and that’s okay.
Yes, ISQM 1 applies to small firms too—but it’s designed to be scalable. To help, IFAC offers a practical Guide to Quality Management for SMPs, packed with examples, templates, and clear steps to make implementation simple and achievable for smaller practices.
The Bottom Line
Think of ISQM 1 as a toolkit for building a better firm. It’s not about more admin or red tape—it’s about helping you do what you do best, with confidence and consistency.
At the end of the day, quality is what sets you apart. It’s what earns your clients’ trust and keeps them coming back. ISQM 1 helps you protect that trust—and grow it.
Join CIBA’s webinar series on Mastering ISQM 1: What Small Accounting Practices Need to Know on 16 April 2024
By completing this course you will:
A clear understanding of who must comply with ISQM 1 (spoiler: probably you)
Clarity on what ISQM 1 is actually about—no fluff, no audit talk
The first steps to create your own quality system using real templates
Confidence to face a CIBA practice review (without breaking into a sweat)
