As we near the end of the year, let's review the quality management standards that were made for 2022.
It is a good time to ensure you have carried out the necessary tasks.
Quality Management Standards
The Auditing and Assurance Standards Board (AASB) approved the new and revised quality management standards in January 2021. The AASB recognized that designing and implementing a system of quality management for the first time will be a significant undertaking. The effective date of CSQM 1 as it applies to related services engagements by one year to December 15, 2023. Firms that perform other services, including audits, reviews and other assurance engagements, will need to have a system of quality management in place by December 15, 2022.
As it relates to Conforming amendments AASB approved conforming amendments to Other Canadian Standards (OCS) in March 2022. CSQM 1 requires firms to have their system of quality management designed and implemented for audits or reviews of financial statements or other assurance engagements by December 15, 2022. Exception is made for related services engagements to December 15, 2023, for firms designing and implementing a system of quality management for the first time. CAS 220 is effective for audits of financial statements for periods beginning on or after December 15, 2022.
How do I prepare and what resources are available?
- Study the standards
The first step will be to familiarize yourself with the standards by reading CSQM 1 and CSQM 2.
- Implementation tool
The IAASB also produced several short videos that explain certain aspects of the standards. These various resources can be accessed at iaasb.org
CPA Canada developed the Implementation Tool for Practitioners – A Focus on Firms that Perform Related Service Engagements