The exposure draft Proposed Statements on Quality Management Standards introduces significant changes to the expectations for managing quality in accounting and auditing practices.
The proposed standards include a new proactive, risk-based approach to effective quality management systems within firms. This approach improves the standards' scalability by promoting a system tailored to the nature and circumstances of the firm and its engagements.
The proposed standards are based on the IAASB’s quality management standards and propose updating terminology, suggesting the use of