At its meeting on September 9-10 and 23, 2020, the AASB discussed, and provided input to the IAASB members from Canada on issues related to:

• proposed International Standard on Quality Management (ISQM) (formerly International Standard on Quality Control) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
• proposed ISQM 2, Engagement Quality Reviews; and
• proposed ISA 220 (Revised), Quality Management for an Audit of Financial Statements.

Key issues discussed included the placement of material relating to the public interest and whether it is best suited in the objective or introductory section in ISQM 1 and ISA 220; and material relating to human resources, including definitions and using the words “personnel” and “individuals” throughout ISQM 1 and ISA 220.

The AASB also discussed the results of a case study workshop that field tested the proposed requirements in ISQM 1. The feedback will assist the Board in making an informed decision about the scope of proposed Canadian Standard on Quality Management (CSQM) 1, and its potential applicability to related services engagements.

The IAASB approved final ISQM 1, ISQM 2, and ISA 220 (Revised) at its September 2020 meeting. The AASB plans to continue its discussions of key matters relating to the Canadian equivalent standards, including the scope of proposed CSQM 1, at its meeting in December 2020. The Board expects to approve the Canadian standards at its January 2021 meeting.

Review the Executive Summary on the AASB's Web site.