Quality Control Program
Auteur : CPA Canada
Latest update: October 2020
In June 2021, the AASB approved and published New Canadian Standards on Quality Management :
- Canadian Standard on Quality Management (CSQM) 1, Quality Managements for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
- CSQM 2, Engagement Quality Reviews
CSQM 1 is effective as follows:
- 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 5, 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.
CSQM 2 is effective for:
- audits and reviews of financial statements and other assurance engagements for periods beginning on or after December 15, 2022; and
- related services engagements beginning on or after December 15, 2023.
Designed to meet practicing professionals’ needs, the programs and questionnaires are checklists that provide guidance on planning, performing and reviewing engagements, as well as on compliance with quality standards required by the profession and users of decision-making information.
The Quality Control Program has been developed with the appendices and practice aids included in CPA Canada’s Quality Assurance Manual. These tools must be used in conjunction with the establishment of a quality control system meeting the requirements of CSQC 1.
The program also includes sample letters which will be useful in the quality control process. In these sample letters, some text has been crossed out to highlight excerpts that must be removed in order to comply with Québec regulations.
Update – October 2020
In this update, some appendices and practical aids have been modified or added. The main changes are described below.
- Appendix F (When to Consult) has been revised to identify and document situations where the need for consultation should be considered.
- Appendix F.1 (List of Approved Consultants) has been added to document the list of people approved by the Firm for consultation on difficult and contentious matters.
- Appendix G (Documenting Consultation) has been revised to document when a consultation is required, as well as the nature of the consultation, any key issues arising, and the final outcome or conclusion.
Appendices of the Quality Assurance Manual (Part B)Appendix A Annual Confirmation of Compliance
Appendix B Suggested Responsibilities for the Firm’s Leadership Roles
Appendix C Confidentiality and Non-Solicitation Agreement
Appendix D Engagement Risk Assessment – Worksheet
Appendix E Hiring an External Consultant
Appendix F When to Consult – Worksheet
Appendix F1 List of Approved Consultants – Worksheet
Appendix G Documenting Consultation – Worksheet
Appendix H Criteria for When an Engagement Quality Control Review (EQCR) is Required
Appendix I Hiring an External Person to Perform an Engagement Quality Control Review (EQCR)
Appendix J Engagement Quality Control Review (EQCR) for Audit Engagements – Worksheet
Appendix J-A1 Engagement Quality Control Review (EQCR) for Use with a Review Engagement – Worksheet
Appendix J-A2 Engagement Quality Control Review (EQCR) for Use with a Review Engagement – Worksheet
Appendix K Hiring an External Monitor
Practice aids of the Quality Assurance Manual (Part C)2.01 Setting the firm’s performance targets
2.02 Engagement report release transmittal form
2.03 Firm self-assessment of work quality
2.04 Summary of Firm’s quality control documentation – Blank
2.04 Summary of Firm’s quality control documentation – Sample completed
2.05 Annual quality control improvement plan – Blank
2.05 Annual quality control improvement plan – Sample completed
2.06 Firm-level quality assurance – Planning checklist
3.01 Firm’s organization chart – Partnership
3.02 Firm’s organization chart – Sole practitioner with staff
3.03 Firm’s organization chart – Sole practitioner with no staff
3.04 Firm’s leadership roles and responsibilities – Worksheet
4.01 Independence decision tree
4.02 Engagement partner rotation – Control form
4.03 Sample independence letter
4.04 Conflicts of interest disclosure and consent letter
5.01 Assurance engagement acceptance form – Detailed
5.02 Assurance engagement continuance – Detailed
5.03 Engagement letters – Optional paragraphs for reporting issuers
5.04 Agreement letter for successor auditor review of files
5.04A Agreement letter for successor practitioner review of files
6.01 Performance appraisal – Annual self-assessment and plan
6.02 Performance appraisal – Annual
6.03 Performance appraisal – Specific engagement
6.04 Offer of employment letter
6.05 Employee discipline letter
7.01 Communicating with audit committees – Sample paragraphs
12.01 Ongoing policy monitor – Worksheet – Sample completed
12.01 Ongoing policy monitor – Worksheet – Blank
12.01A Quality control leader interview – Worksheet
12.01A1 Quality control leader interview – Worksheet – Sample completed
12.01A2 Quality control leader interview – Worksheet – Sample completed
12.01B Staff interview – Worksheet –Sample completed
12.01B Staff interview – Worksheet – Blank
12.01C Engagement-level compliance with firm policies – Checklist – Sample completed
12.01C Engagement-level compliance with firm policies – Checklist – Blank
12.02 Report of ongoing policy monitor – Worksheet – Sample completed
12.02 Report of ongoing policy monitor – Worksheet – Blank
12.03 Completed file monitoring – Worksheet
12.04 Report of completed file monitor – Worksheet
12.04A Completed file monitoring (audit engagement) – Worksheet
12.04B Completed file monitoring (review engagement) – Worksheet
12.04B1 Completed file monitoring (review engagement, CSRE 2400) – Worksheet
12.05 Annual ongoing policy monitor report for sole practitioners and small firms – Worksheet
12.06 Completed file monitoring for sole practitioners and small firms – Worksheet
CPAs in public practice.