A Qualitative Comparative Analysis of the Transition from Quality Control to Quality Management: Examining the Changes Introduced by SMM 1 and SMM 2

Abstract

This research analyzes the change in concepts and structure from the quality control approach within Standar Pengendalian Mutu 1 (SPM 1) towards the quality management system in Standar Manajemen Mutu 1 (SMM 1) and Standar Manajemen Mutu 2 (SMM 2). This research uses qualitative comparative documentary analysis adopting a configurational approach on standards issued by the Indonesian Institute of Public Accountants (IAPPI). The analysis process involves open coding, axial coding, comparative mapping, and configurational analysis on areas such as governance, ethics, client acceptance, resources, quality objectives, quality risk, responses, information and communication, monitoring and remediation, and engagement quality review. The difference between SPM 1 and SMM 1 is that SPM 1 standardizes policies and procedures in six aspects of quality control, while SMM 1 standardizes the quality objectives and the principles of risk-based governance and asks companies to adapt their policies to their nature, context, and engagement portfolio. Moreover, SMM 2 enhances the level of protection at the engagement level through defining specific standards for reviewer qualification, objectivity, performance, completion, and documentation. From a theoretical perspective, the new framework alters the paradigm of standardization from procedural compliance to quality governance and implements the quality management principles of prevention, integration, feedback, learning, and continual improvement.