Cameron R. Burrows CPA System of Quality Management (CSQM 1 & 2)
1. Quality Objectives (CSQM 1)
- Leadership and Governance: The sole practitioner must take responsibility for the promotion of quality within the practice and demonstrate commitment to quality in all professional activities.
- Ethical Requirements: Implementing policies to ensure compliance with relevant ethical requirements, including those related to independence and confidentiality.
- Human Resources: Ensuring the competence and capabilities of the practitioner through ongoing professional development and education.
- Technological Resources: Using appropriate technology that supports the quality management system.
- Intellectual Resources: Maintaining access to necessary professional standards, legal regulations, and other technical resources.
- Identifying and Assessing Risks: Identifying risks that could affect the achievement of quality objectives, such as risks arising from complex transactions or unfamiliarity with certain industries.
- Actions to Address Risks: Implementing measures to mitigate identified risks, including specialized training or consultation with external experts.
- Internal Communication: Effective communication processes that ensure clear understanding of the firm’s quality policies and procedures.
- External Communication: Mechanisms to obtain feedback from clients, regulatory bodies, and other stakeholders to enhance the quality management system.
- Monitoring Activities: Regular reviews of the SQM’s effectiveness, including periodic inspections of completed engagements.
- Remediation: Prompt action to resolve deficiencies identified during monitoring, with changes to policies or procedures as necessary.
- Scope of Engagement Quality Reviews: Identifying which types of engagements require an engagement quality review based on complexity and risk.
- Selection of Engagement Quality Reviewers: Ensuring the reviewer is competent, objective, and has the necessary authority to perform the review effectively.
- Conducting and Documenting Reviews: The process for performing reviews, addressing findings, and documenting results.
- Implementation Plan: Developing a timeline for the rollout of the quality management system, including training and initial assessments.
- Documentation: Detailed record-keeping of all aspects of the quality management system, including decisions on significant matters, risk assessments, and monitoring activities.
- CPA Canada and CPABC Resources: Utilize resources offered by CPA Canada and the Chartered Professional Accountants of British Columbia, including templates, guidelines, and professional development courses.
- Professional Consultants: Consider hiring a consultant who specializes in CPA quality management systems for initial setup and periodic review.