ISQM Compliance

ISQM Self-Declaration

A. Qasem & Co. Chartered Accountants

Statement of Compliance with ISQM 1

A. Qasem & Co. Chartered Accountants is committed to maintaining the highest standards of audit quality and professional ethics. We have established a System of Quality Management (SoQM) in accordance with the International Standard on Quality Management (ISQM) 1, ensuring that our firm effectively identifies and responds to risks that may affect the quality of our engagements. This declaration affirms our compliance with the eight components of ISQM 1 as outlined below:

1. Firm’s Risk Assessment Process
   Our firm has implemented a structured risk assessment framework, which involves periodic identification, evaluation, and response to quality risks across all engagements. We establish specific quality objectives and tailor risk responses based on engagement complexity, industry-specific risks, and regulatory requirements. Our risk assessment is reviewed at least annually and updated in response to changes in external and internal factors, including professional standards, emerging risks, and regulatory developments. The effectiveness of these measures is assessed through analysis, periodic internal reviews, and engagement-level monitoring.
2. Governance and Leadership
   The Managing Partner, as the individual with ultimate responsibility for the SoQM, ensures that audit quality remains a strategic priority. Our leadership team fosters a culture that emphasizes integrity, professional skepticism, and accountability. Performance evaluations and remuneration structures for engagement partners and staff are linked to audit quality indicators rather than commercial considerations. To reinforce leadership’s commitment, we conduct periodic leadership training focused on ethical decision-making, risk management, and professional responsibilities under ISQM 1.
3. Relevant Ethical Requirements
   We ensure strict compliance with the International Code of Ethics for Professional Accountants (IESBA Code) and relevant local regulations through our monitoring system. Independence is rigorously assessed at both the firm and engagement levels, with annual confirmations obtained from all personnel. We monitor non-audit services, financial interests, and relationships to prevent conflicts of interest. Ethical breaches trigger immediate investigation and, where necessary, disciplinary action. Mandatory training on independence, confidentiality, and objectivity is conducted annually, with compliance tracked via internal tool.
4. Acceptance and Continuance of Client Relationships
   Our firm applies a multi-tiered evaluation process before accepting or renewing client engagements. This includes an assessment of management integrity, financial stability, engagement risk, and the firm’s ability to meet quality expectations. The approval process involves documented risk assessments, partner consultation, and engagement-level independence checks. For high-risk engagements, escalation procedures require senior leadership involvement and, in certain cases, pre-approval from the Risk Management Committee. Engagements that fail to meet our ethical, quality, or professional standards are declined.
5. Engagement Performance
   Engagement teams are assigned based on specific competency matrices, ensuring appropriate expertise for each engagement. We enforce structured audit planning, mandatory pre-engagement discussions, and enhanced partner involvement for high-risk engagements. Key audit judgments and significant matters are subject to second-level technical reviews by specialists, and audits of publicly listed companies undergo final engagement quality reviews (EQR) where required. We utilize standardized workpaper templates, digital audit documentation tool, and checklists to ensure consistency, documentation sufficiency, and compliance with ISAs.
6. Resources
   The firm ensures that personnel, technological infrastructure, and methodological tools align with engagement demands. Our resource management system monitors workload distribution to prevent overburdening staff and ensures audit teams have the necessary skills, experience, and industry knowledge. Mandatory training hours are defined for each professional level, and specialist resources, such as IT auditors, forensic experts, and tax specialists, are deployed for engagements requiring advanced expertise.
7. Information and Communication
   Our firm has established internal communication protocols to facilitate real-time updates on regulatory changes, quality management policies, and emerging risks. Key policy updates and training materials are disseminated through our digital learning platform. Engagement teams have access to firm-wide risk alerts, audit methodology changes, and regulatory guidance. External communication with regulators, audit committees, and oversight bodies follows strict transparency guidelines, ensuring compliance with professional obligations.
8. Monitoring and Remediation Process
   Our monitoring framework consists of ongoing engagement monitoring, periodic internal inspections, and independent reviews conducted by external experts. Deficiencies identified during inspections trigger root cause analyses, and corrective actions are documented and tracked through an internal quality improvement plan. Engagement teams receive targeted remediation training, and recurring deficiencies result in revisions to audit methodology, enhanced guidance, and additional supervision. The firm maintains a whistleblower mechanism, encouraging personnel to report concerns without fear of retaliation.

Conclusion
A. Qasem & Co. Chartered Accountants affirms its commitment to upholding the principles of ISQM 1 by continuously evaluating and enhancing our System of Quality Management. We remain dedicated to serving the public interest by maintaining the highest standards of professionalism, independence, and audit quality.