CSQM 1: Quality Management for Firms that Perform Audits or Reviews of Financial Statements
Requires firms to design, implement, and operate a system of quality management addressing governance, risk assessment, resources, engagement performance, monitoring, and remediation.
Why CSQM 1 matters
CSQM 1 changed how Canadian firms accept engagements. Issuers may be subject to expanded acceptance and continuance procedures, especially if they are higher-risk (going concern, restatement history, complex M&A).
Framework: Canadian Standards on Quality Management (CSQM)
CSQM 1 and 2 (Canadian adoption of IAASB's ISQM 1 and 2) require firms to design and operate a system of quality management that governs how audit and assurance engagements are accepted, performed, and reviewed.
Primary source: FRAS Canada
Frequently asked
What is CSQM 1?
Requires firms to design, implement, and operate a system of quality management addressing governance, risk assessment, resources, engagement performance, monitoring, and remediation.
Why does CSQM 1 matter for an audit?
CSQM 1 changed how Canadian firms accept engagements. Issuers may be subject to expanded acceptance and continuance procedures, especially if they are higher-risk (going concern, restatement history, complex M&A).
Which framework does CSQM 1 belong to?
CSQM 1 falls under Canadian Standards on Quality Management (CSQM). CSQM 1 and 2 (Canadian adoption of IAASB's ISQM 1 and 2) require firms to design and operate a system of quality management that governs how audit and assurance engagements are accepted, performed, and reviewed.
Related standards — Canadian Standards on Quality Management (CSQM)
See how Auditus checks CSQM 1
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