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CSQC1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and other Assurance Engagements has been in effect since December 15, 2009. All firms that provide assurance services are required to establish a system of quality control that is compliant with CSQC 1.
There are some significant differences between CSQC 1 and GSF-QC, the standard it replaced, particularly involving the completion of an engagement quality control review and who can perform the inspection.
By making the CSQC 1 effective December 15, 2009, the Auditing and Assurance Standards Board (AASB) helps ensure that the system of quality control is implemented on a timely basis to properly support the application of the new Canadian Auditing Standards (CASs), which come into effect for periods ending on or after December 14, 2010.
Background
Canada’s auditing standard setters were involved with the efforts of the International Auditing and Assurance Standards Board (IAASB) to develop global auditing and quality assurance standards to provide a basis on which auditors worldwide may conduct high-quality, consistent and comparable audits.
These efforts culminated in the development of reformatted, and in some cases, revised: - International Standards on Quality Control (ISQC) for firms (adopted in Canada as CSQC 1)
- International Standards on Auditing (ISAs) for the audits of financial statements and other historical financial information for all entities. (adopted in Canada as CASs effective December 14, 2010.
The CSQC 1 resources listed in the right hand column provide more information including:
Risk Alert. CSQC 1 – Transition issues: - Effective dates for CSQC 1 and CASs
- Date of completion of engagement quality control review for audit engagements
- New engagement quality control procedures
- Timeframe to complete the assembly of the final audit file
Risk Alert. New Quality Control Standards for Firms: - Completion of engagement quality control review
- Who can perform the inspection
- Rotation of senior personnel
- Inspection cycles for completed engagements
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