Quality Management Services

Advisory Services for Public Company Auditors

Quality Management Services

Quality management is a critical component for firms of all audit practices, including issuer and broker-dealer audits. Firms are required to comply with similar standards related to their system of quality management. Specifically, the IAASB and AICPA have adopted ISQM1 and SQMS1, respectively, and the PCAOB has proposed QC 1000 A Firm’s System of Quality Control. As a result, firms that are required to follow IAASB, AICPA or PCAOB standards need to reconsider their internal quality controls and implement new processes to comply with these requirements.


The following wheel depicts the cyclical nature of the steps that a firm should undertake to initially adopt these standards and then continue year-after-year to remain in compliance:

Through our experiences evaluating systems of quality control, completing hundreds of firm inspections, now as advisors, we see that the firm’s system of quality management compliance requirements are significant changes. These changes will affect firms around the globe due to the amount of effort involved given the rigor of these standards. 


We have supported firm’s initiatives to put processes and systems in place around many of the changes to standards related to the system of quality management. These changes include adding governance and leadership controls, adding new firm quality risk assessment processes to comply with the new requirements, expanding firm controls around independence and ethics requirements, and adding firm technological, intellectual, and human resources. This work also includes expanding controls over monitoring and remediation, including developing and implementing root cause analyses.


Firms should consider examining their system of quality management for compliance with these new standards as there are alternative and incremental requirements. JGA has the experience and team to help firms comply with these quality standards.

Interested In a demo of qm.x or how JGA can assist you with your Quality Management needs?

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Our Services Include:

Risk Assessment

  • Identify the “what could go wrongs” 
  • Perform a risk evaluation 
  • Assist or perform risk heat mapping development and implementation 
  • Refine and update risks 

Implementation and Training

  • Assist with new or revised control implementation 
  • Support reorganization/realignment 
  • Develop, deliver, and consult on training programs 

Monitoring

  • At firm level 
  • Develop and implement score cards and QC KPIs 
  • At engagement level 
  • Perform pre- and post-inspections 
  • Perform root cause analysis, including
  • interviews with engagement teams 

Evaluation and Testing

  • Assist with the annual evaluation of the system of Quality Management including development, implementation and evaluation 

Quality Management Readiness 

  • Perform an initial risk assessment 
  • Perform a gap health check on key components of the firm’s QC process 
  • Support QC documentation efforts 
  • Advise on software implementation 
  • Refine and assist with developing QC processes 

Root Cause and Remediation 

  • Root Cause 
  • Assist with methodology / audit tool development 
  • Conduct interviews 
  • Perform and analysis of root cause findings 
  • Complete and report on root cause analysis 
  • Remediation 
  • Design and execute on remedial action plans for firm-level deficiencies 
  • Assist with engagement level remediation and resolution

JGA Announces Enhancements to Quality Management Services

By Christy Howard • 24 Jun, 2022
Los Angeles, CA.: Johnson Global Accountancy (“JGA”) is pleased to announce the expansion of our current quality management implementation and monitoring services to launch of a full suite of services to help public accounting firms tackle the new Quality Management (“QM”) Standards required by the IAASB, AICPA, and PCAOB. “An audit firm’s system of quality management is an important pillar of the financial reporting ecosystem,” stated Jackson Johnson, President of JGA. “Since JGA started in 2017, we have been advising our U.S. and international clients on improving and monitoring their systems of quality management. It is, therefore, a natural fit for us to partner with public accounting firms all over the world on their design, implementation, and continuous monitoring of QM programs under the newly effective standards.” As firms face the new standards and their respective implementation dates, firms all over the world are required to evaluate and design quality management programs to prepare for the upcoming implementation dates. This includes designing a system that identifies and responds to all the quality risk areas using the firm’s processes, policies, and controls. JGA QM services include: Risk Assessment Implementation and Training Monitoring Evaluation and Testing Quality Management Readiness Root Cause and Remediation JGA is committed to supporting firms in the process of enabling their systems of quality management with customized software solutions. Our experience encompasses working with firms to provide expertise in a scaled set of managed services and software to complement the most successful implementation tools for our clients. Learn more about JGA’s QM services here. About Johnson Global Accountancy JGA is dedicated to helping public accounting firms around the globe achieve the highest level of audit quality. Led by CPAs and former PCAOB inspection staff, JGA professionals are passionate and practical about working alongside firm leadership to ensure the right controls, policies, and practices are implemented throughout the organization. ###

ISQM 1 and SQMS 1: Influencing the Firm on the Benefits Beyond Compliance

By Jackson Johnson • 17 Feb, 2022
Compliance is definitely the main driver of the new System of Quality Management (SQM) standards issued by the IAASB or the drafted standards from AICPA and the PCAOB. There is no disputing that. However, for the early adopters, what we are finding is that there are immense amounts of business value that come out of this process; more if you actually start the process with business value in mind. Given that firms are all in various stages preparing for the go-live date of controls operating on December 15, 2022, we thought it would be helpful to lay out the strategic value drivers from this compliance exercise. Related: See a breakdown of the various implementation dates here . SQM implementation requires firms to take a closer look at their internal process; every process that touches the value chain of getting an audit done.

2021 Busy Season Reminders for Auditors - Free Webinar

By Sara Trifiro • 03 Feb, 2022
Register today for the "simulated live" recording of our Busy Season Reminders for Auditors co-sponsored with Johnson Global Accountancy. This webinar is a MUST for auditors going into busy season this year. It’s a “greatest hits” list of our A&A Update that we facilitate for accounting firms around the world. In this webinar we cover: Impairment reminders Auditing accounting estimates and the use of specialists Highlights of ASUs effective for private entities in 2021 Risk assessment and its impact on your audit procedures Preparing for ASC 842 Leases Audit integration (between IT and financial auditors) to improve audit quality Although we can't issue CPE credits for the recording, you can still get all the great content anywhere and anytime!
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