SQMTrove user guide

ISQM requirements, standards and regulations

RequirementWhat SQMTrove provides
ISQM 1.20–22 RolesRole assignments with experience, authority, time, direct line and acknowledgement; leadership evaluations (chapter 4)
ISQM 1.23–27 Risk assessment processRequired objectives (locked) and firm objectives; risks scored for likelihood and effect; responses; links; conditions and changes; heat map; traceability; gaps; published versions (chapter 5)
ISQM 1.29, 34(a)–(b) EthicsCampaigns reconciled to the people register; on-behalf declarations; exceptions; breaches; threats; gifts; non-assurance services; fee dependency; rotation and firm tenure; restricted list (chapter 7)
ISQM 1.30, 34(d) Acceptance and continuanceClients with PIE status; acceptance decisions with independent approval of high-risk engagements; information after acceptance (chapter 8)
ISQM 1.31, 34(f); ISQM 2; ISA 220 (Revised)Engagement register and import; review determination; reviewer eligibility; the ISQM 2.25 review; external reviewers; consultations; differences of opinion; automatic findings (chapter 9)
ISQM 1.32 ResourcesPeople register; CPD against ICAN and ANAN rules; competence; capacity; appraisals; technology; methodology; service providers (chapter 6)
ISQM 1.33, 34(e) Information and communicationPolicies with versions and acknowledgements; communications log; audit committee communications; regulatory calendar; transparency report draft (chapter 10)
ISQM 1.34(c) Complaints and allegationsSpeak-up with an anonymous option; confidential register; findings for substantiated complaints (chapter 14)
ISQM 1.35–47 Monitoring and remediationPlan (1.37 matters); activities and inspections with objectivity checks; partner cycle; external inspections; findings; deficiencies with severity and pervasiveness; root cause analysis; remedial actions with tests; report to leadership (chapters 11–13)
ISQM 1.53–56 EvaluationEvidence as at the evaluation date; component and overall conclusions limited by open deficiencies; signature by the individual with ultimate responsibility; locked record with fingerprint (chapter 15)
ISQM 1.57–60 DocumentationInspection pack; quality indicators; CSV export of every register; evidence files with versions; sealed audit trail (chapters 16, 21)
ReferenceSubjectUsed in
ISQM 1 (IAASB)Quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagementsThroughout
ISQM 2 (IAASB)Engagement quality reviewsChapter 9
ISA 220 (Revised)Quality management for an audit of financial statementsChapters 9, 11
ISA 230, ISA 540 (Revised), ISA 500, ISA 620, ISA 250 (Revised)Documentation and file assembly; accounting estimates; audit evidence; using an expert; laws and regulationsChapters 9, 11, 12
IESBA CodeConceptual framework; public interest entities (R400.22); breaches (R400.80 onwards); fees (Section 410); gifts (Section 420); financial interests (Section 510); long association (Section 540); non-assurance services (Section 600); NOCLAR (Section 360)Chapters 7, 8
FRC Act 2011 (as amended)Registration; public interest entities; documentationChapters 2, 8
FRC Audit Regulations 2020Non-assurance fees and the audit fee; partner rotation after five years and firm tenure of ten years for PIEs; inspectionsChapters 2, 7, 12
FRC RulesTransparency report (Rule 12)Chapter 10
ICAN, ANANContinuing professional development; practice licences; practice monitoringChapters 6, 12

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