This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

CSQM 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements

Ef­fec­tive date:

CSQM 1 is effective for audits and reviews of financial statements for periods beginning on or after December 15, 2022 and for related services engagements for periods beginning on or after on December 15, 2023.

Overview

CSQM 1 replaces Canadian Standard on Quality Control (CSQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements. It incorporates a risk-based approach that firms are required to follow in designing, implementing and operating a system of quality management for audits or reviews of financial statements, or other assurance or related services engagements that is scalable to the nature and circumstances of the firm and the engagements it performs.

CSQM 1 sets out requirements relating to: (i) the system of quality management; (ii) the firm's risk assessment process; (iii) governance and leadership; (iv)  relevant ethical requirements; (v) acceptance and continuance of client relationships and specific engagements; (vi) engagement performance; (vii) resources; (viii) information and communication; (ix) specified responses; (x) the monitoring and remediation process; (xi) network requirements or network services; (xii) evaluating the system of quality management; and (xiii) documentation.

CSQM 1 is effective as follows:

  • Systems of quality management in compliance with CSQM 1 for audits or reviews of financial statements or other assurance engagements are required to be designed and implemented by December 15, 2022, and the evaluation of the system of quality management required by paragraphs 53-54 of CSQM 1 is required to be performed within one year following December 15, 2022.
  • Systems of quality management in compliance with CSQM 1 for related services engagements are required to be designed and implemented by December 15, 2023, and the evaluation of the system of quality management required by paragraphs 53-54 of CSQM 1 is required to be performed within one year following December 15, 2023.

His­tory of CSQM 1

Date

Development

Comments

May 1, 2021

Issued to replace CSQC 1 as part of the new Audit Quality Management standards.  See Completed Project.

Effective for audits and reviews of financial statements for periods beginning on or after December 15, 2022 and for related services engagements beginning on or after on December 15, 2023.

Note: The above sum­mary does not in­clude de­tails of con­se­quen­tial amend­ments made as the re­sult of other pro­jects.

Amend­ments un­der con­sid­er­a­tion

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.