Documenting ISQM-CH 1 in the audit firm

Last updated: October 2026 · fastview ag, Suhr

Professionally responsible: Marco Zanetti and Reto Ackermann, fiduciaries and certified auditors, fastview ag

ISQM-CH 1 requires every audit firm to have a quality management system that records objectives, risks and responses and is monitored regularly. pruvia runs this system in the same audit software as the audit files. Much of the evidence therefore arises from data that is generated during the audit anyway.

What ISQM-CH 1 is about

ISQM-CH 1 replaces the previous quality control standard ISQC-CH 1 and applies to all audit firms, including those that perform only limited statutory examinations. Instead of a fixed checklist, the standard requires a risk-based approach: the firm sets quality objectives, assesses the risks that threaten those objectives, and plans responses to them. Top management evaluates the system at least annually. ISQM-CH 2 additionally governs engagement quality reviews.

According to the documents on which pruvia is based, ISQM-CH 1 has been in force since 15 December 2025. Audit firms not under state supervision must have designed and implemented their system by 15 December 2026. The pronouncements of EXPERTsuisse and the FAOA are authoritative.

The eight components in pruvia

The page “Quality management (ISQM-CH 1)” lists the components with reference to the paragraphs of the standard:

Each component has three tabs. “Objectives” shows the standard text. Under “Risks & responses” you decide, for each proposed response, “implemented” or “not applicable” and refer to your own policy, for instance a chapter in the QM manual. Under “Evidence” you see what is substantiated. The proposed risks depend on the size of the firm: one licensed person, small (2–5 professionals) or medium-sized audit firm (6–15 professionals), or state-supervised. pruvia proposes the size from the number of licensed persons. A component counts as complete when all risks have been decided and all evidence is present.

Evidence from the audit files

A piece of evidence comes from the system, from an upload (PDF up to 8 MB) or from a confirmation per person. For system evidence, pruvia reads the firm’s audit files: acceptance assessments, independence and confidentiality declarations of the team members, consultations, engagement quality reviews, dates of report approval and archiving, and per person licence, FAOA number, continuing education hours and file reviews. From these arise indicators such as “engagements assessed”, “files archived within 60 days” or “licensed persons with at least 30 h of continuing education”. Whatever is missing appears as an open point. How the audit files from which this evidence is drawn come about, and which steps pruvia automates in the process, is described on the page AI and automation in the audit.

Inspection and annual evaluation

1. Inspection (firm and file review). You choose the period and the inspector; licensed persons or an external person can be selected. Anyone who was involved in the engagement in a leading role cannot inspect it. pruvia proposes a completed engagement: first with the lead person with the oldest or no inspection, ordinary audits and special audits before limited statutory examinations. Firm and file review each comprise eight points; you record findings with root cause, measure and deadline. The result is an inspection report as a PDF.
2. Annual evaluation (para. 53–54). After the inspection, top management chooses one of three conclusions on the QM system; if it deviates from “reasonable assurance”, a justification is mandatory. pruvia files the minutes as a PDF and keeps the earlier evaluations.

Organisation of the audit firm

Under “Organisation of the audit firm”, pruvia keeps what substantiates the resources and leadership components:

• Persons and licences: licence (licensed audit expert, licensed auditor, no licence), FAOA number, continuing education of the last three years and leadership function. For each course, date, title, provider, hours and certificate are recorded. Independence and confidentiality confirmations are kept annually per person.
• Governing bodies and minutes with date, meeting and resolutions.
• Regulations and policies with templates for organisational regulations, independence policy, continuing education regulations, IT and data protection policy, and acceptance and resignation policy, each with version, valid from, cycle, responsible persons, last review and PDF.
• Insurance and contracts, in particular professional liability insurance with insurer, cover and expiry date. If it is missing, pruvia points this out.
• Notifications to the FAOA with date and content.

What the auditor decides

pruvia provides components, objectives and proposals for risks and responses, and compiles evidence. Whether a response is implemented, which own policies apply, which engagements are inspected, how findings are to be remediated and what conclusion leadership reaches is decided by the audit firm. Responsibility for the QM system remains with top management.

Frequently asked questions

Does ISQM-CH 1 also apply to firms that perform only limited statutory examinations?

Yes. ISQM-CH 1 applies to all audit firms, even if they perform only limited statutory examinations. In pruvia, quality management is therefore available regardless of the type of audit.

Which evidence does pruvia generate itself?

Indicators from the audit files and personal data: independence and confidentiality declarations, acceptance assessments, consultations, archiving within 60 days, licences and continuing education hours. Whatever is missing appears as an open point.

How does the inspection work?

As a firm and file review with eight points each. pruvia proposes a completed engagement, blocks inspectors who were involved in the engagement in a leading role, and produces an inspection report as a PDF.

Can I file my own documents?

Yes. Evidence can be uploaded as a PDF up to 8 MB. You file regulations and policies under “Organisation of the audit firm” with version, validity and responsible persons.

Is ISQM-CH 2 covered as well?

pruvia keeps the declarations of the engagement team, the consultation and the engagement quality review per engagement; this information flows into ISQM-CH 1 as evidence.

Try pruvia

The system tour shows pruvia with sample data, without registration. For questions about your audit firm, book an online demo.

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