Quality Management: Getting Ready to Apply the New Standard

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.

Key learning outcomes include:

• Familiarization with the new quality management standards: CSQM1 (replacing CSQC1), CSQM2, and CAS 220.
• Understanding the foundational shift from a policy-based approach to a risk-based approach in quality management.
• Insight into the components of a robust quality management system, including governance and leadership, ethical requirements, client acceptance, engagement performance, and resources (human, technological, and intellectual).
• Strategies for identifying and assessing quality risks tailored to your firm's unique characteristics.
• Guidance on designing and implementing responses (policies) that effectively address identified risks.
• Practical examples demonstrating how to translate quality objectives into actionable policies, with a special focus on the "Resources" component.
• Awareness of requirements for network firms and the critical role of the Head of Quality Management.
• A clear roadmap for design and implementation milestones, distinguishing between the 2022 and 2023 deadlines for various engagement types.

The focus of this one-hour training session will be to discuss the steps, key activities, forms and potential issues need to get tothe design and implementation stage. The goal of the session will review the CPA Canada Quality Management Guidemethodology and forms, with the aim of assisting firms in writing their firm’s Quality Management Manual.