Quality Management – Getting ready to apply the new standards
All firms performing assurance engagements, and this now includes compilation engagements, will be required to have systems of quality management (SoQM) designed and implemented in accordance with CSQM 1 by December 15, 2022.
CPA Canada released the new Quality Management Guide in August 2022. These new standards, specifically CSQM1, CSQM2 and CAS 220 revised, contain major revisions in terms of methodology and requirements compared to the previous standards.
CSQM 1 requires firms to adopt a risk-based approach in designing, implementing, and operating the SoQM. In general, this requires a firm to:
· Establish Quality Objectives;
· Identify and assess risks to meet objectives; and
· Design and Implement Responses to quality risks.
The focus of this one-hour training session will be to discuss the steps, key activities, forms and potential issues need to get to the design and implementation stage. The goal of the session will review the CPA Canada Quality Management Guide methodology and forms, with the aim of assisting firms in writing their firm’s Quality Management Manual.
Perquisite: While we the key changes the firms quality management systems and new requirements, these will be discussed at a high level. Participants are expected to be familiar with the requirements by having read the standard and/or taken the full 3-hour session offered, “Quality Management - New Responsibilities for Firms – 2022”.
Marcus Guenther MBA, CPA, CA
Marcus Guenther works with corporations and accounting firms to improve their workflow, internal control and risk management practices, as well as assisting with technical accounting and auditing issues. He is the co-author of the CICA Professional Engagement Manual (CPEM) as well as other technical publications and articles and teaches accounting, IFRS, and auditing and assurance courses for numerous professional organizations.