What’s New - QAM Update #7

AuthorStuart Hartley,

FCPA, FCA, CA•IT

EFFECTIVE IMPLEMENTATION OF YOUR

FIRM’S QUALITY CONTROL SYSTEM

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Overview of QAM Update #7

This update addresses the feedback and questions received from practitioners.Key features include:A new Chapter 16 in Part A with a summary of common quality control engagement deficiencies, which can be used in developing an annual quality control improvement planRevisions to some charts and diagramsGuidance on appropriate lock down procedures for completed filesGuidance on independence and conflict of interest situationsA new form for planning compliance with office-wide quality control standardsRevisions to the ongoing monitoring checklists

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Structure of QAM

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Part A: The Standards and QAM Chapters

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Part A: Table of Contents

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Part A: Table of Contents

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Part B: Sample Quality Assurance Manuals

1. Sole Practitioner with No Staff 2. Sole Practitioner with Staff3. Small or Medium-Sized Partnership4. Partnership with Audits of

Listed Entities/Reporting Issuers

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Maintaining the Quality Control System

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The Two Types of Quality Control Monitoring

1. Ongoing Policy Monitoring (OPM)Firms can self-monitor Daily compliance with Firm’s quality assurance manual 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

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Sample Quality Assurance Manuals

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Sample Policies and Best Practice

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Compliance Documentation

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Part C: Practice Aids

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QAM Update #7 Will Help Your Firm

Comply with independence and conflict of interest requirementsPerform effective ongoing quality control reviewsEnsure that assembled files are appropriately locked downContinually improve systems of quality control

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CPA Canada Professional Resources

Quality Assurance Manual (QAM)Canadian Professional Engagement Manual (C•PEM)C•PEM Electronic TemplatesModel Financial Statements (Accounting Standards for Private Enterprises (ASPE) and Accounting Standards for Not-for-Profit Organizations (ASNPO))

www.cpastore.ca