1. What’s New - QAM Update #7 Author Stuart Hartley, FCPA, FCA, CAIT EFFECTIVE IMPLEMENTATION OF YOUR FIRM’S QUALITY CONTROL SYSTEM

2. 2 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 plan  Revisions to some charts and diagrams  Guidance on appropriate lock down procedures for completed files  Guidance on independence and conflict of interest situations  A new form for planning compliance with office-wide quality control standards  Revisions to the ongoing monitoring checklists

3. 3 Structure of QAM

4. 4 Part A: The Standards and QAM Chapters

5. 5

6. 6 Part A: Table of Contents

7. 7

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

9. 9

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 #7 Will Help Your Firm  Comply with independence and conflict of interest requirements  Perform effective ongoing quality control reviews  Ensure that assembled files are appropriately locked down  Continually improve systems 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