1. What’s New - QAM Update #6 Author Stuart Hartley, FCPA, FCA, CAIT EFFECTIVE IMPLEMENTATION OF YOUR FIRM’S QUALITY CONTROL SYSTEM

2. 2 Overview of QAM Update #6 This update addresses the feedback and questions received from practitioners. Key features:  Expanded quality control compliance documentation  Included further guidance on developing an annual quality control improvement plan  Revised engagement quality control review and file monitoring checklists  Added two new HR letters

3. 3 Structure of QAM

4. 4 Part A: The Standards and QAM Chapters

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6. 6 Part A: Table of Contents

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8. 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. 10 Maintaining the Quality Control System

11. 11 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

12. 12 Sample Quality Assurance Manuals

13. 13 Sample Policies and Best Practice

14. 14 Compliance Documentation

15. 15 Part C: Practice Aids

16. 16 QAM Update #6 Will Help Your Firm  Document your firm’s ongoing compliance with its quality control policies  Perform effective engagement quality control reviews  Ensure key areas are addressed in performing a completed file monitoring review (a completed form has also been added)  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. 17 CPA Canada Professional Resources  Quality Assurance Manual (QAM)  Canadian Professional Engagement Manual (C PEM)  C PEM Electronic Templates  Model Financial Statements (Accounting Standards for Private Enterprises (ASPE) and Accounting Standards for Not-for-Profit Organizations (ASNPO)) www.cpastore.ca