Case Study

qCuSaQliCty1control for firms that perform audits and reviews of financial statements, and other assurance engagements quality control for firms that

perform audits and reviews

of financial statements, and

other assurance engagements

CSQC 1.

(Effective as of December 15, 2009)

CSQC 1 contains wording that is amended from that in corresponding ISQC 1. The Preface

to the CICA Handbook –Assurance provides an explanation of these amendments.

The scope ofCSQC1 is different fromISQC1.CSQC1 applies to audits and reviews of

financial statements and other assurance engagements whereas ISQC 1 applies to

audits and reviews of financial statements and other assurance and related services

engagements.

TABLE OF CONTENTS

PARAGRAPH

Introduction

Scope of this CSQC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

Authority of this CSQC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-9

EffectiveDate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C12

Requirements

Applying, and Complying with, Relevant Requirements . . 13-15

Elements of a SystemofQuality Control . . . . . . . . . . . . . . 16-17

Leadership Responsibilities for Quality within the Firm. . 18-19

Relevant Ethical Requirements. . . . . . . . . . . . . . . . . . . . . . 20-25

Acceptance and Continuance of Client Relationships and

Specific Engagements . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-28

Human Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-31

Engagement Performance . . . . . . . . . . . . . . . . . . . . . . . . . . 32-47

Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48-56

Documentation of the SystemofQuality Control . . . . . . . . 57-59

Application and Other Explanatory Material

Applying, and Complying with, Relevant Requirements . . A1

Elements of a SystemofQuality Control . . . . . . . . . . . . . . A2-A3

Leadership Responsibilities for Quality within the Firm. . A4-A6

Relevant Ethical Requirements. . . . . . . . . . . . . . . . . . . . . . CA7-A17

Acceptance and Continuance of Client Relationships and

Specific Engagements . . . . . . . . . . . . . . . . . . . . . . . . . . . A18-A23

1 CSQC 1

© Canadian Institute of Chartered Accountants

Human Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A24-A31

Engagement Performance . . . . . . . . . . . . . . . . . . . . . . . . . . A32-A63

Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A64-A72

Documentation of the SystemofQuality Control . . . . . . . . A73-A75

Canadian Standard on Quality Control (CSQC) 1, "Quality Control for Firms that Perform

Audits and Reviews of Financial Statements, andOther Assurance Engagements,"

should be read in conjunction with CAS 200, "Overall Objectives of the Independent

Auditor and theConduct of an Audit inAccordance with Canadian Auditing Standards."

Introduction

Scope