New Quality Management Standards
Amid growing stakeholder expectations and a need for quality management systems that are proactive and adaptable, three interrelated standards have been introduced to strengthen and modernize how firms approach quality management.
In January 2021, the Auditing and Assurance Standards Board (AASB) unanimously approved the suite of quality management standards.
CSQM 1 and CAS 220 replace:
- Canadian Standard on Quality Control (CSQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial statements, and Other Assurance Engagements
- CAS 220, Quality Control for an Audit of Financial Statements.
CSQM 2 is a new standard addressing the appointment and eligibility of engagement quality reviewers and their responsibilities when performing the engagement quality review (EQR).
How it impacts you?
Canadian practitioners performing any engagement addressed by standards in the Handbook.
Practitioners performing the following services will now be required to design and implement a quality system on quality management:
Related services engagements (not previously affected
Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements
- CSRS 4400, Agreed-Upon Procedures Engagements
- CSRS 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement
Timelines and implementation
- Firms are required to design and implement their quality system on quality management for audits and reviews of financial statements and other assurance engagements by December 15, 2022. They are required to evaluate their system within one year following this date.
- Firms are required to design and implement their quality system on quality management for related service engagements by December 15, 2023. They are required to evaluate their system within one year following this date.
How do I learn more?
You can find Quality Management courses on CPA Alberta's PD Portal. Relevant courses include:
Providers of Assurance
Providers of Compilation and Other Non-Assurance
Download additional resources and materials
Resources from IFAC
I have more questions, who do I contact?
Advisory and consultation services are provided to designated accountants, candidates, and the public on a broad range of topics such as independence, conflict of interest, office management, Continuing Professional Development, accounting and assurance questions, and many others. This service is confidential, free of charge and is intended to provide only informal feedback.
If you have an advisory or consultation question, email firstname.lastname@example.org or call 403.299.1309 , or toll-free at 1.800.232.9406.