What’s New - QAM Update #4 Author Stuart Hartley, FCA EFFECTIVE IMPLEMENTATION OF YOUR FIRM’S QUALITY CONTROL SYSTEM

2 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

3 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)

4 Structure of QAM

5 Part A: The Standards and QAM Chapters

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7 Part A: Table of Contents

8 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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10 Maintaining the Quality Control System

11 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

12 Sample Quality Assurance Manuals

13 Sample Policies & Best Practice

14 Compliance Documentation

15 Part C: Practice Aids

16 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

17 CICA Professional Resources  Canadian Professional Engagement Manual (C PEM) Canadian Professional Engagement Manual (C PEM)  CICA C PEM Electronic Templates CICA C PEM Electronic Templates  Model Financial Statements Model Financial Statements  Accounting Standards for Private Enterprises (ASPE) Accounting Standards for Private Enterprises (ASPE)  Not-for-Profit Organizations Not-for-Profit Organizations CAstore.ca