ACCA Strategic Professional · Advanced Audit and Assurance (International) · International regulatory frameworks for audit and assurance services

Brightwater LLP must assign responsibilities under ISQM 1. The firm's managing partner proposes that she is ultimately responsible for the system of quality management, and that she will delegate day-to-day operation of it to a technical director. Which statement is correct under ISQM 1?

Under ISQM 1, ultimate responsibility and accountability for the system of quality management is assigned to the firm's leader, who must be suitably experienced and authoritative. Operational responsibility for aspects of the system can be delegated to others, but delegating operations does not remove that ultimate accountability.

1. AUltimate responsibility and accountability for the system rests with the individual assigned it, who must have appropriate experience and authority, and operational responsibility may be assigned to othersCorrect
2. BResponsibility may be delegated entirely, so no individual bears ultimate accountability if the technical director operates the system
3. COnly the engagement partners bear responsibility for quality, so no firm-level assignment is needed
4. DUltimate responsibility must always rest with the engagement quality reviewer