Quality Management Standards

Inside the CSQM Free Risk Assessment Planner, you'll discover:

• A practical proven approach in how to get started with your SQM implementation plan
• My "Risk Brainstorming Meeting Method"; how to prepare for, and execute a productive risk brainstorming session
• A risk documentation worksheet to guide you in identifying quality risks based on the nature and circumstances of your firm

Free download: CSQM 1 - Risk Assessment Planner

Firms that are currently applying the Canadian Standard on Quality Control (CSQC) 1 likely have December 15, 2022 marked prominently on their calendar. That’s because it is the effective date for Canadian Standard on Quality Management (CSQM) 1. This means firms will need to have implemented their risk-based system of quality management for audits or reviews of financial statements or other assurance engagements by that date. (The effective date for CSQM 1 for other related services engagements is deferred by one year to December 15, 2023.)

THIS is a critical time in the Canadian accounting profession for chartered professional accountants in public practice. Many accounting standards are evolving, with none perhaps more important than the recently approved suite of quality management standards.\

These standards strengthen the overall proficiency of firms and the engagements they perform by promoting a robust, proactive and scalable approach to quality management. The suite of quality management standards is comprised of CSQM 1, CSQM 2, and CAS 220, which replace extant CSQC.

Kirsten S. Albo of ASK KSA Consulting Inc. kicks off a four-part series on CSQM 1

Read more: Preparing for the new quality management standards: An overview for Canadian practitioners

New quality management standards, both at the firm and engagement levels, could impact all practitioners. Our guidance materials will help you implement these changes and advise your teams on the desired outcomes.

Amid growing stakeholder expectations and a need for quality management systems that are proactive and adaptable, three interrelated standards have been introduced. These standards will strengthen and modernize how firms approach quality management, presenting a substantial development and change for Canadian practitioners and stakeholders since they include significant shifts. The new suite of standards centres on quality management to enable a proactive, risk-based approach and higher quality engagements.

Read more: Quality management guidance resources

Three new and revised standards strengthen and modernize the audit firm’s approach to quality management. Through the standards, the IAASB is addressing an evolving and increasingly complex audit ecosystem, including growing stakeholder expectations and a need for quality management systems that are proactive and adaptable.

The standards direct audit firms to improve the robustness of their monitoring and remediation, embed quality into their corporate culture and the “tone at the top”, and improve the robustness of engagement quality reviews.

The standards became effective December 15, 2022. They replaced the IAASB’s International Standard on Quality Control 1 and International Standard on Auditing 220.

Read more: IAASB - Quality Management