What’s New - QAM Update #4
EFFECTIVE IMPLEMENTATION OF YOUR
FIRM’S QUALITY CONTROL SYSTEM
Author
Stuart Hartley, FCA
Overview of QAM Update #4
Substantially rewritten and expanded to address the
changes in Canadian Standards on Quality Control (CSQC 1) and CAS 220
Key features:
 Four updated sample Quality Assurance Manuals
 More guidance to help firms customize the sample manuals
 Optional best practice text shaded in sample policies
 Core chapters provide commentary on each sample policy
2
Overview of QAM Update #4
Key areas addressed:
 Clarifies what is involved in monitoring
 Includes more guidance in the policies (e.g., planning the
Engagement Quality Control Review or EQCR)
 Requires name of person responsible for policies vs. “the firm is
responsible”
 Provides suggestions on how to document compliance with CSQC 1
and CAS 220
 Addresses reporting issuers (listed entities)
3
Structure of QAM
4
Part A: The Standards and QAM Chapters
5
6
Part A: Table of Contents
7
Part B: Sample Quality Assurance Manuals
1.
2.
3.
4.
8
Sole Practitioner with No Staff
Sole Practitioner with Staff
Small or Medium-Sized Partnership
Partnership with Audits of
Listed Entities/Reporting Issuers
9
Maintaining the Quality Control System
10
The Two Types of QC Monitoring
1. Ongoing Policy Monitoring (OPM)
 Firms can self monitor
 Daily compliance with Firm’s QAM
 Annual report to managing partner on findings
 Recommendations for improvement
2. Completed File Monitoring (CFM)
 Minimum one file inspected per partner every three years
 Inspector can have NO involvement with file being reviewed
 Discuss specific deficiencies with engagement partner
 Report to managing partner on findings and provide
recommendations
11
Sample Quality Assurance Manuals
12
Sample Policies & Best Practice
13
Compliance Documentation
14
Part C: Practice Aids
15
QAM Update #4 will help your firm
 Understand the requirements of CSQC 1 and CAS 220
 Develop a customized Quality Assurance Manual for the firm
 Assign leadership roles
 Document the firm’s ongoing compliance with its quality control policies
 Organize, perform and prepare monitors’ reports for:
 ongoing policy monitoring (OPM)
 completed file monitoring (CFM)
 Continually improve your firm’s system of quality control
16
CICA Professional Resources
 Canadian Professional Engagement Manual (C•PEM)
 CICA C•PEM Electronic Templates
 Model Financial Statements
 Accounting Standards for Private Enterprises (ASPE)
 Not-for-Profit Organizations
CAstore.ca
17