The analytical framework of the International Standards of Quality Management (ISQM)
Keywords:
ISQM, audit quality, risk management, regulatory compliance, technological integrationAbstract
This study examines the analytical framework of the International Standards of Quality Management (ISQM), assessing its role in transforming audit quality assurance from static compliance models to dynamic, risk-based systems. The research evaluates the eight-component ISQM framework encompassing governance, ethics, client relationships, technological integration and its impact on modern auditing practices. Through a mixed-methods approach combining quantitative analysis of audit outcomes and qualitative case studies, the study identifies significant improvements in audit quality, including reduced restatement rates and enhanced fraud detection capabilities. However, challenges persist, particularly for small and medium-sized firms facing disproportionate implementation costs and technological barriers. Moreover, Key findings highlight the framework’s effectiveness in fostering leadership accountability, ethical infrastructure, and continuous monitoring, while underscoring scalability issues in cross-jurisdictional and resource-constrained environments. The study proposes modular implementation strategies for smaller firms, standardized metrics for emerging risks (e.g., algorithmic bias, ESG compliance), and competency frameworks to address workforce gaps in AI validation. By bridging theoretical advancements in risk management with practical insights, this research offers a roadmap for achieving sustainable audit excellence amid rapid digital transformation and evolving regulatory demands.
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