Chartered Accountants Australia and New Zealand (CA ANZ) has launched a new audit quality toolkit to support small and medium audit firms (SMPs) to implement major changes from the latest quality management standards.
Launched today at the Accounting and Audit Conference, the toolkit is one of the most comprehensive resources to help SMPs deal with the new standards worldwide released late last year, containing illustrative risk assessments and pro-forma documentation.
CA ANZ Assurance and Reporting Leader, Amir Ghandar, said the toolkit will give SMPs a head-start in implementing the changes and a helping hand to meet documentation requirements.
“The new quality management standards are significant and involve a far more nuanced approach according to each respective firm,” Mr Ghandar said.
“Quality management standards have evolved from being a compliance-based, one size fits all approach, to a scalable risk-based approach which integrates quality management practices.
“ASQM1 reflects the shift to that risk-based approach.
“Implementation of the new standards requires SMPs to have firm-wide quality conversations to identify and assess risks and design and implement responses to mitigate these risks to ensure objectives required by the standard are achieved .
“Importantly, the new standards reflect the nature, size and complexity of firms and can be tailored accordingly.
“While they welcome the changes, our members are telling us the new standards are significant and do require some work to understand how it works specifically for their practice.
“That’s why we are providing support to make sure they are ready for the implementation deadline which is at the end of this year.
“Ideally, with the right investment upfront SMPs can save time and complexity in dealing with audit quality management by focusing on what matters in their practice, and the move away from the more prescriptive control approach of the previous standards.”
The toolkit and its materials were developed in conjunction with members and international peers and will be available on CA ANZ’s Quality Management Hub. Firms need to comply with the new standards by 15 December 2022.
“Audit quality is critical to maintaining trust in the profession right across the board, from the largest firms to sole practitioners,” Mr Ghandar said.
“These changes to quality management standards take that trust a step further, building more confidence in the auditing profession and across the broader industry.”
For more information, and to get a copy of the toolkit, visit www.charteredaccountantsanz.com