The new quality management standards are effective for assurance engagements as at December 14, 2022. As at this date the firm’s system of quality management (‘SOQM’) needs to have been developed and implemented. All non-assurance engagements have an additional year, until December 14, 2023, to be incorporated into the firm’s SOQM.
As the quality management standards impact all areas of the firm including: firm management, human resources, engagement performance (including all resources utilized) this project is significant in scope for firms with more than a few people and few different service lines.
The most significant issue with these new standards is the timing and level of partner involvement necessary throughout the process of risk identification, development of appropriate responses to those risks and the implementation of the processes to ensure the responses are effective.
CPA Canada resources for the SOQM documentation will not be available until May 2022. We recommend that at this time you assign senior staff to this project and start working through the standards related material as you wait for the professional resources to be available. We do not recommend underestimating the time and resources necessary to implement these new standards.
To get started, we recommend you review the International IAASB Project Page for Quality Management and the related resources that are freely available.