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New quality management suite of standards: Audit and assurance alert

Learn about changes to your responsibilities for quality management related to this new suite of Canadian standards comprising CSQM 1, CSQM 2, and CAS 220.

The International Auditing and Assurance Standards Board (IAASB) has issued fact sheets which provide an overview of the changes made and new material introduced in:

  • ISQM 1 Quality Management for Firms that Perform Audits or Review of Financial Statements, or Other Assurance or Related Services Engagements
  • ISQM 2 Engagement Quality Reviews
  • IAS 220 (revised) Quality Management for an Audit of Financial Statements

Included in the fact sheets are the outcomes that the new standards are seeking to achieve.

We have issued this audit and assurance alert to raise awareness about the new Canadian standards on quality management at the firm and engagement level, which include:

  • Canadian Standard on Quality Management (CSQM) 1, Quality Management for Firms that Perform Audits or Review of Financial Statements, or Other Assurance or Related Services Engagements
  • CAQM 2, Engagement Quality Reviews
  • Canadian Auditing Standard (CAS) 220, Quality Management for an Audit of Financial Statements

The Canadian standards CSQM 1, CSQM 2, and CAS 220 largely mirror ISQM 1, ISQM 2, and ISA 220 (revised), respectively. This alert contains links to the IAASB Fact Sheets.

Note that for Canadian firms applying these standards:

  • Firms are required to design and implement their system of quality management for audits or reviews of financial statements or 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 system of quality management for related services engagements by December 15, 2023. They are required to evaluate their system within one year following this date.

For those firms who were not previously subject to CSQC 1 and are implementing the suite of quality management standards for the first time, check out our Practitioner Alert which includes some considerations for first-time implementers.