With increasing regulatory demands, many small and medium-sized audit practices (SMPs) have shifted their focus almost entirely to compliance — often at the expense of essential business practices. While ISQM 1 and ISQM 2 introduce some business-aligned principles, they are frequently applied in a narrow, compliance-driven manner, rather than being integrated into the firm’s broader operations.

To truly benefit, firms should approach these requirements by asking, ‘What is the purpose?’, ‘What processes already address this?’ and ‘How can we adapt them to support both business efficiency and audit quality?’ Beyond the standards, essential business disciplines — such as strategic planning, culture-building and purpose-driven leadership — must be embraced. SMPs should set ambitious, forward-looking goals, not limited by current clients or capacity, but aimed at growing both talent and resources.

There are real opportunities for SMPs to serve larger clients, form strategic partnerships, and enhance their market profile. When firms adopt strong leadership principles and a growth mind-set, improvements in audit quality, training, research, and internal systems follow naturally — compliance then becomes a by-product of a well-run business. Numerous affordable tools exist to support audit teams in areas such as project management, data analysis, evidence gathering, training and administration. The first and most crucial step is a shift in mind-set: from compliance to sustainable, purpose-led leadership.