At its meeting on January 21, 2021, the AASB unanimously approved:

1. 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;
2. CSQM 2, Engagement Quality Reviews;
3. CAS 220, Quality Management for an Audit of Financial Statements; and
4. related conforming amendments to other CASs.

CSQM 1 is effective as follows:

1. 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 be evaluated within one year following December 15, 2022.
2. Firms are required to design and implement their system of quality management for related services engagements by December 15, 2023. They are required to be evaluated within one year following this date. The system of quality management is required to be performed within one year following December 15, 2023.

CSQM 2 is effective for:

1. audits and reviews of financial statements and other assurance engagements for periods beginning on or after December 15, 2022; and
2. related services engagements beginning on or after December 15, 2023.

CAS 220 is effective for audits of financial statements for periods beginning on or after December 15, 2022.

In approving CSQM 1 and CSQM 2, the AASB considered whether to re-expose new or revised Canadian amendments. The deferral of the effective dates of CSQM 1 and CSQM 2 for related services engagements responds to stakeholder concerns heard during consultation.

The Board concluded that re-exposure would likely not result in any new information that would change its decision on this matter. Once the AASOC confirms that the AASB followed due process with proper regard for the public interest, CSQM 1, CSQM 2, CAS 220, and related conforming amendments to other CASs will be issued in the CPA Canada Handbook – Assurance in May 2021.

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