Today, the International Federation of Accountants (IFAC) released the third and final installment in its three-part publication series to help small- and medium-sized practices (SMPs) implement the International Auditing and Assurance Standards Board’s (IAASB) suite of quality management standards. Installment Three: Monitoring and Remediation provides tips and guidance for the practical implementation of the monitoring and remediation of a firm’s system of quality management.  

Installment Three addresses: 

• The factors driving the nature, timing and extent of the monitoring activities. 
• The scope and outcome of monitoring activities to establish a feedback loop for continuous improvement.   
• Establishing a framework for evaluating findings, identifying deficiencies, and evaluating the severity and pervasiveness of deficiencies, which includes investigating root causes.   
• Responding to identified deficiencies and communication about monitoring and remediation.  
• The ongoing evaluation of the system of quality management.   

Installment Three includes multiple documentation aids covering annual monitoring and evaluation of the system of quality management, cyclical inspection of completed audits and other engagements and a monitoring and remediation report to assist practitioners. It also continues the case study introduced in the previous installments. 

Installment One of the series addressed the mindset change the new standards require and the shift in focus from quality control to quality management. Installment Two covered development of an implementation plan for quality management.  

This series joins IFAC’s collection of available resources that support quality management implementation, including webinars, articles and videos, as well as the IAASB first-time implementation guides, all of which are available at ifac.org/qualitymanagement. 

This publication series and other resources like it underscore IFAC’s commitment to supporting SMPs and empowering them to provide the best possible service to their clients. IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and Forum of Firms representatives in the development of the series. 

About IFAC 
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce. 

The MENA Sustainability Forum is presented by IFAC in partnership with the Emirates Association for Accountants & Auditors. 

This is the third and final installment in a three-part publication series to help small- and medium-sized practices implement the International Auditing and Assurance Standards Board’s new quality management standards. The IAASB’s suite of quality management standards were issued in December 2020 and came into effect in December 2022.

Installment Three: Monitoring and Remediation provides tips and guidance for the practical implementation of the monitoring and remediation of a firm’s system of quality management.  

Top leaders in global sustainability standard setting, regulation, and accounting joined an afternoon of programming jointly hosted by the International Federation of Accountants (IFAC), the IFRS Foundation, and the International Organization of Securities Commissions (IOSCO) on September 23 as part of Climate Week NYC. The over-subscribed invitation only event, Accelerating Climate and Sustainability-Related Disclosures: A Global Perspective, had as its objective to advance global adoption and implementation of the ISSB Standards and build an understanding of sustainability assurance in its early days.  

Lee White, Chief Executive Officer, IFAC said: “A united effort is essential to support the transformation taking place in businesses to address climate and other sustainability risks and opportunities and to meet the needs of investors and other stakeholders worldwide. Collaboration and alignment among regulators, standard setters, businesses, and the accountancy community is critical to accelerate the uptake of climate-related disclosure and assurance.  

“Following the progress made at IOSCO’s Annual Meeting in Athens in May, IFAC is delighted to once again connect with the IFRS Foundation and IOSCO here in New York to help strengthen our global ecosystem of consistent and comparable sustainability-related information. It is important to congratulate and recognize the work of the International Auditing and Assurance Standards Board in very recently finalizing its new International Standard for Sustainability Assurance (ISSA) 5000, which will be a critical element of this global ecosystem.”

ISSB Chair, Emmanuel Faber said: “The implementation of ISSB Standards globally will lead to better informed and more resilient capital markets. Assurance of the information will be a critical factor in building confidence in sustainability-related disclosures to inform investment decisions. We are impressed by the jurisdictional momentum around the globe for the adoption or use of our Standards, and enabling companies to provide high-quality disclosures will take time and support. We are grateful to both IFAC and IOSCO for their partnership in working to build capacity within jurisdictions and across markets."

Jean-Paul Servais, Chair of IOSCO, said: “Promoting high-quality sustainability-related reporting is one of the key priorities for IOSCO to protect investors against greenwashing. Global progress towards the introduction of sustainability disclosure requirements has been swift since IOSCO announced its endorsement of the first ISSB Standards in July 2023. IOSCO is committed to collaborate with the ISSB and other global stakeholders to deliver a comprehensive capacity building program to support the wider use of sustainability disclosures.

"To underpin the trustworthiness and thus usefulness of the disclosures, IOSCO also encourages the global development of assurance standards by IAASB and IESBA and welcomes IFAC’s work to help all users and practitioners better understand and prepare for what high-quality sustainability assurance will look like.

"This conference demonstrates the joint efforts of IOSCO, IFAC, and the IFRS Foundation to contribute to decision-useful sustainability information in the interest of investors.”

So far this year, IFAC has convened sustainability reporting and assurance stakeholders in Singapore, Bogota, and New York, and will be in Dubai in October to continue the discussion.

In June of this year, IFAC released Sustainability Assurance: What to Expect in order to help investors and other market participants appreciate how sustainability assurance will evolve in comparison to statutory financial audits.

In recognition of the importance of the Global South to the sustainable transformation, IFAC is also releasing Beyond the G20: The State of Play in Sustainability Disclosure and Assurance, which examines both reporting and assurance practice in twenty smaller and emerging jurisdictions.

A compilation of a recording of the event will be made available in due course. For more information and to be notified of the release of the recording, please reach out to climateweek@ifac.org.

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

Full Event Recording

In December 2023 the International Auditing and Assurance Standards Board (IAASB) published the