Audit and assurance alert: Moving from quality control to quality management
In January 2021, the Auditing and Assurance Standards Board (AASB) unanimously approved the suite of quality management standards, including Canadian Standard for Quality Management 1 (CSQM 1). CSQM 1 replaces Canadian Standard on Quality Control 1 (CSQC 1).
CSQM 1 moves away from a focus on quality control and introduces a new approach to managing quality that is best represented by a change in the name of the standards to “quality management.” The new approach to quality is a risk-based approach focused on achieving quality objectives. The approach is grounded in a risk assessment that identifies quality risks specific to firms and the engagements they perform.
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.
Download this publication to learn how to move to the new CSQM 1.