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Quality assurance is the process of providing confidence that the stated or implied requirements for quality are met. In financial investment services, “quality” is defined as the perception of the investor about achieving satisfactory returns under acceptable and generally accepted risks within a planned time. Investor’s confidence in achieving quality stems from the quality assurance efforts and processes of the investment service provider. In this paper, different types of investment services, from a simple provision of investment information, to a full‐service portfolio management are discussed. Principles of quality assurance in investment services are provided. A realistic portfolio management case indicates that a modern quality management system (ISO 9000) can enhance quality assurance and thus the quality of investment services.

Discusses quality and environmental management systems integration. Concepts of a system and a “system of systems” are addressed, followed by a description of different management systems, and their interrelations and integration. Subsequently, strategies for integration of the quality system based on the ISO 9001 standard and the ISO 14001 environmental management system are presented. The harmonization of related audit sub‐systems, namely ISO 10011 and ISO 14010/11/12 is also addressed. Finally, a discussion on the development of a generic performance management system is provided.

Quality audits are prominent and proven management tools for assessing compliance and effectiveness of quality systems. They are commonly used in the effort to improve overall business performance. However, similarly to any other physical or conceptual system, they may fail to achieve objectives set forth, raising concerns among auditees and clients alike. Argues for the provision of adequate confidence to various interested parties in the quality of auditing services. A quality audit is conceptualized using the systems approach. Subsequently, a quality assurance framework based on the application of the 1994 and 2000 versions of the ISO 9001 standard in auditing is presented. Audit system effectiveness is modeled using the concepts of audit reliability, availability and suitability. Audit failures, risks and maintainability are addressed in detail. It is concluded that audit managers must ensure appropriate levels of quality and effectiveness of quality audit systems.

As competition in the global economy grows, management systems are becoming increasingly complex and diverse. Management system audits, applied for the examination of system effectiveness and compliance with planned arrangements, seem to be following the same path. This paper addresses the fundamental models, concepts, principles and practices of management system auditing, with the objective of improving the consistency and effectiveness of audits across quality, environmental, financial, safety, maintenance and other auditing disciplines. The concept of a generic audit is introduced on the basis of the systems approach. Discipline‐specific audit definitions are analyzed, and a generic audit definition is depicted. Quality, environmental and accounting audit principles are compared, and a set of basic features of a generic audit is illustrated and discussed. Common audit practices are subsequently illustrated, followed by an outline of the structure and content of a generic audit guideline, together with the proposed two‐prong approach to the development of the generic audit.

The concept and method of dynamic auditing are discussed ‐ how they can support and guide auditors in their extended audit tasks. Differentiating between more conventional static auditing and modern dynamic auditing, without judging one superior over the other, will be helpful to auditors and auditees. Each basic type of auditing has its merits and applications. Dynamic auditing complements existing audit practices and renders auditing itself more effective.

In recent years, two performance evaluation methodologies have received significant attention in managerial circles: quality audit and self‐assessment. While the quality audit examines the compliance of a quality system with ISO 9000 standards and its suitability to achieve stated objectives, the self‐assessment measures organizational performance against a selected business excellence model. In a continuous improvement effort, an organization can lay out the groundwork by establishing an ISO 9000 quality system, and subsequently use an excellence model to enhance performance, thereby effectively applying both evaluation methodologies. This paper compares the principles and practices of quality audits and self‐assessments, for the purpose of examining their compatibility and providing the basis for integration. Numerous differences in the concepts, purpose, scope and methodology are illustrated, and self‐assessments are found to be more advantageous in enabling continuous improvement. However, it is concluded that audits and self‐assessments are compatible, and further research into the issues of enhancing both methodologies is suggested.

Trends in modern management point toward composite and comprehensive management systems that provide for competitive performance in the global economy. Management system audits are widely used to ensure compliance with planned arrangements and improvement of business performance. This paper addresses the harmonization and integration of audits of different management systems. The current international auditing standards for quality (ISO 10011) and environmental (ISO 14010/11/12) management are reviewed. A detailed comparison of the form, structure and content of these standards is provided. Subsequently, criteria for “best auditing practice” are illustrated. The possibilities of harmonizing audit standards, and integrating them with the current best audit practice are assessed. Integration on the basis of the systems approach is suggested. Finally, it is concluded that integrated audits and audit standards will emerge in the very near future.

Quality control of products and services has been recognised in China as an important mainspring for economic reform and growth. The recently implemented consultation and reward programme for quality improvement has had some positive impact. But effective quality control systems in individual enterprises along with modern management methods still need to be properly established. China welcomes external technical exchanges. In an international co‐operative research and development project we studied computer‐interactive auditing and international quality programme registration. This is to induce and guide management towards improved quality and exporting capacity.

Quality audit, as a methodology for evaluating system, product and/or process performance against established requirements, has experienced substantial growth in worldwide use in recent years. This is largely due to the steady increase in ISO 9000 registrations, which topped 350,000 in the year 2000. Based on the fundamental principles of independence, objectivity and professionalism, the audit is an irreplaceable tool when confirmation of compliance with standards is sought. However, it commonly fails in enabling continuous improvement and spanning the differing aspects of business performance beyond conventional “quality assurance”. This paper argues for removing one of the principles of traditional auditing, namely independence, to empower the process owner to conduct periodic self‐evaluations of process performance. Such “self‐audits” would be less formal than quality audits, and, much like the better‐known self‐assessments against business excellence models, aimed at continuous quality improvement. The concept, principles and practices of a self‐audit are focused on.

Auditors of quality assurance systems contribute to technological excellence in many important ways. They gain much insight into modern technology through their various audits and induce managers to make valuable improvements that raise quality and productivity. More specifically, computer‐based technology is transferred and disseminated through auditors. The interrelationship between the computer and quality auditing is analysed. Innovative and integrative auditing of quality assurance systems is shown to be instrumental in attaining technological improvements. The American Society for Quality Control (ASQC) Guideline for Quality System Auditing also has an important role to play in this respect.