What’s New - QAM Update #4

Author Stuart Hartley, FCA

EFFECTIVE IMPLEMENTATION OF YOUR FIRM’S QUALITY CONTROL SYSTEM

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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

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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)

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Structure of QAM

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Part A: The Standards and QAM Chapters

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Part A: Table of Contents

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Part B: Sample Quality Assurance Manuals

1. Sole Practitioner with No Staff 2. Sole Practitioner with Staff 3. Small or Medium-Sized Partnership 4. Partnership with Audits of

Listed Entities/Reporting Issuers

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Maintaining the Quality Control System

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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

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Sample Quality Assurance Manuals

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Sample Policies & Best Practice

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Compliance Documentation

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Part C: Practice Aids

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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

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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

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