1. Purpose and Scope
This Guiding Document is designed to facilitate the implementation of the JointValues Quality Management Policy. It establishes the operational framework for the JointValues System of Quality Management (SoQM) in compliance with ISQM 1, ISQM 2, and ISA 220 (Revised). It serves as the primary technical bridge for personnel to transition from high-level policy to the specific written procedures required for ESG Assurance, Consulting, and Solutions.
JointValues is committed to the progressive alignment of its internal systems with international benchmarks, including leading standards for assurance engagements and ISO 9001:2015 for general quality management systems.
2. Governance and Leadership
Leadership establishes the environment in which the SoQM operates.
- Ultimate Responsibility: The Managing Partner is responsible and accountable for the SoQM.
- Operational Responsibility: The Quality Management Committee (QMC) oversees the day-to-day operation, implementation, and effectiveness of the system.
- Performance Evaluations: Annual evaluations are performed for leadership and personnel to ensure accountability for quality objectives.
- Organizational Structure: Roles and responsibilities are clearly defined and communicated to ensure the system’s operationality.
3. The Firm’s Risk Assessment Process
JointValues implements a formal process to identify, assess, and respond to quality risks.
- Establishing Quality Objectives: Objectives are set to provide reasonable assurance that professional standards and regulatory requirements are met.
- Identifying and Assessing Quality Risks: The team identifies risks by considering internal factors (e.g., personnel competence) and external factors (e.g., changes in ESG reporting standards like BRSR or ISSA 5000).
- Designing and Implementing Responses: Responses (controls) are developed to mitigate assessed risks, including the creation of standardized work templates and checklists.
- Dynamic Review: The risk assessment is updated when material changes occur in the firm’s circumstances or professional standards.
4. Relevant Ethical Requirements
Compliance with the IESBA Code of Ethics is mandatory for all personnel and engagements.
- Independence Monitoring: The firm maintains procedures to identify and evaluate threats to independence in both fact and appearance.
- Written Confirmations: All personnel must provide an annual written confirmation of compliance with independence requirements.
- Conflict of Interest: A centralized registry tracks potential conflicts between the firm’s consulting and assurance service lines.
- Ethical Training: Continuous training programs address integrity, objectivity, and professional skepticism in ESG contexts.
5. Acceptance and Continuance
Procedures ensure the firm only undertakes engagements it is capable of performing with integrity.
- Integrity Evaluation: Assessment of the client’s reputation and business practices to prevent association with unethical entities.
- Competence and Capability: Verification that the firm has the necessary time, resources, and specialist expertise.
- Risk Profiling: Assessment of the specific risks associated with an engagement, such as data immaturity or regulatory complexity.
- Documented Approval: Acceptance decisions require formal sign-off from both the Engagement Partner and the QMC.
6. Engagement Performance
Standardized procedures guide the planning, execution, and review of all deliverables.
- Direction and Supervision: Engagement Partners are responsible for directing the team and supervising the work performed.
- Review of Significant Judgments: Senior team members review significant judgments and conclusions to ensure compliance with standards.
- Consultation: Procedures facilitate internal and external consultation on difficult or contentious matters.
- Differences of Opinion: A formal protocol exists for resolving differences of opinion within the engagement team or with consultants.
- Engagement Quality Review (EQR): For high-risk engagements, an EQR is performed by a qualified individual not involved in the engagement.
7. Resources
JointValues provides the infrastructure necessary for a high-quality SoQM.
- Human Resources: Recruitment and retention policies focus on technical competence and ethical values.
- Technological Resources: Management of secure data systems, audit software, and IT tools to support engagement performance.
- Intellectual Resources: Provision of methodologies, manuals, and technical literature (e.g., IAASB Handbooks).
- Service Providers: Evaluation and monitoring of third-party specialists (e.g., external carbon auditors) to ensure their work meets firm standards.
8. Information and Communication
The system ensures information flows to support the operation of the SoQM.
- Internal Reporting: Systems for communicating quality objectives and individual responsibilities to all personnel.
- External Transparency: Transparent communication with clients and regulators regarding the firm’s quality management practices.
- Documentation Maintenance: Maintenance of comprehensive records of all QMS processes to demonstrate compliance during audits.
9. Monitoring and Remediation
The firm monitors the SoQM to ensure it is designed, implemented, and operating effectively.
- Ongoing Monitoring: Regular inspections of completed engagements and system-level controls.
- Evaluation of Deficiencies: Identified gaps are evaluated to determine if they are “deficiencies” as defined by ISQM 1.
- Root Cause Analysis (RCA): The firm performs RCA to understand why a deficiency occurred and how to prevent it.
- Remedial Actions: Design and implementation of corrective measures to address identified deficiencies.