System of Quality ManagementSystem of Quality Management

System of Quality Management

1. The firm shall design, implement and operate a system of quality management. In doing so, the firm shall exercise professional judgement, taking into account the nature and circumstances of the firm and its engagements. The governance and leadership component of the system of quality management establishes the environment that supports the design, implementation and operation of the system of quality management. (Ref: Para. A30–A31)

Responsibilities

1. The firm shall assign: (Ref: Para. A32–A35)
   1. Ultimate responsibility and accountability for the system of quality management to the firm’s chief executive officer or the firm’s managing partner (or equivalent) or, if appropriate, the firm’s managing board of partners (or equivalent);
   2. Operational responsibility for the system of quality management;
   3. Operational responsibility for specific aspects of the system of quality management, including:
      1. Compliance with independence requirements; and (Ref: Para. A36)
      2. The monitoring and remediation process.
2. In assigning the roles in paragraph 20 the firm shall determine that the individual(s): (Ref: Para. A37)
   1. Has the appropriate experience, knowledge, influence and authority within the firm, and sufficient time, to fulfill their assigned responsibility; and (Ref: Para. A38)
   2. Understands their assigned roles and that they are accountable for fulfilling them.
3. The firm shall determine that the individual(s) assigned operational responsibility for the system of quality management, compliance with independence requirements and the monitoring and remediation process, have a direct line of communication to the individual(s) assigned ultimate responsibility and accountability for the system of quality management.