Implementing a quality management system for your firm with Inflo
In one of our previous posts, we discussed the changes that are coming with the IAASB Quality Management Standards and how they will impact audit firms.
From drafting your Quality Management System (QMS) to implementing it and then continually evolving it, Inflo QMS enables firms to establish a modernized QMS through an efficient and streamlined process.
Inflo QMS covers the eight QMS components by asking simple configuration questions:
- Firm’s Risk Assessment Process
- Governance and Leadership
- Engagement Performance
- Relevant Ethical Requirements
- Acceptance and Continuance
- Information and Communication
- Monitoring and Remediation Process
Inflo’s Hybrid Intelligence engine suggests Quality Objectives
InfloHi applies proprietary recommendation algorithms to analyze your configuration responses and suggests suitable Quality Objectives.
As required by the new standards, responses suggested by InfloHi are scaled to your firms’ size, complexity, and engagement types
This approach helps small and medium sized firms design a simpler and more streamlined system while meeting required quality standards.
InfloHi saves time and adds confidence, you also have the option of designing your QM by independently creating your own, Risks and Responses or pulling from Inflo’s Quality Risks and Quality Responses libraries.
Suggested Risks and related Responses are then automatically linked to each Quality Objective
Defining a Response for each Risk may seem simple, in a real world setting this may require more thought. Inflo QMS allows for both one to one and one to many associations between Risk and Responses, to help firms manage this potential complexity.
To drive accountability and review additional details can then be added
- For the overall QMS as well as for specific aspects of the system.
- Operational responsibilities can be assigned for testing and evaluation of each Risk and Response, and where needed, designated responsibilities can be shared across your team in a transparent and efficient manner.
Set Reassessment Dates
- Defining the timeframe within which each Risk and Response must be assessed.
- When the configuration process is complete, Inflo QMS presents an easy-to-use overview of your draft QMS. This initial Draft can be tailored further based on your unique circumstances.
When the Configuration process is complete, Inflo QMS presents an easy-to-use overview of your draft QMS. This initial Draft can be tailored further based on your unique circumstances.
Implementing a Quality Management System to your needs next steps
Once you have drafted your system its time to look at tailoring it to meet your firms’ precise needs. Inflo QMS is designed to provide you with flexibility so that individuals assigned quality management roles and permissions can tailor the system by;
Next, we would look at assessing and scoring risks and responses which we can break down in to two areas:
1 Inherent Risk Scores
Assessing Risks by scoring them based on inherent likelihood of ‘occurrence’ and magnitude of ‘effect’ on Quality objectives
2 Risk Reduction Scores
Assigning mitigation score to the Responses indicating the extent to which the Responses reduce the occurrence and effect of the applicable Risks.
Navigating and Implementing a Quality Management System
Having established your risk scoring as discussed in a previous blog, you can then start navigating your quality management system in Inflo.
You will be presented with the following major sections:
- Two Risk Spectrums showing Inherent Risk and Residual Risk scores plotted for each Risks.
- Residual Risk Scores calculated by netting Inherent Risk and Risk Reduction scores.
- Scored present a quantified indication of your firm’s Risk of noncompliance and, conversely your ability to achieve your Quality Objectives.
- Graphical Presentations of –
- QMS Components indicating the number of Risks with linked Responses under each quality management component.
- Reassess Dates displaying the number of Risks and Responses due for reassessment within each defined period.
- Users showing the number of Risks and Responses assigned to each QMS user.
- A Quality Risk table listing all Risks which you can click-through to view further information.
After your firm’s QMS has been tailored and finalized, implementing a quality management system will then come in to focus. This will consist of both on going Monitoring and Inspection activities, both of which will typically lead to continual modifications and refinements.
Technology centric solutions will in these circumstances continue to pay dividends. Quality Management activities and monitoring can occur in real time with the resulting information automatically accumulated and shared, allow it to be acted on quickly. This is in stark contrast to a ‘document and spreadsheet’ approach which depends on manual processes.
To learn more about the new quality management standards check out our full explanatory guide, or understand how technology can help your firm be fully ISQM compliant, no more checklists or spreadsheets.