Audit Quality Disclosure Framework

Tuesday, January 8, 2019

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The Audit Quality Disclosure Framework can aid audit firms of all sizes as they develop or consider developing their transparency or audit quality reports. Developed in consultation with a range of CAQ member firms, the Framework adheres to three key principles:

  • The Framework is voluntary and illustrative, as opposed to prescriptive or all-inclusive.
  • The Framework is flexible, giving firms the ability to tailor the information that is most relevant and meaningful to audit quality.
  • The Framework relates to disclosure of a system of quality control at a firm level, rather than at the engagement level.

Under these overarching principles, the Framework provides “Points of Focus” for six Elements of audit quality and certain examples of Firm-Level audit quality indicators:

  1. Leadership, Culture, and Firm Governance
  2. Ethics and Independence
  3. Acceptance and Continuance of Clients and Engagements
  4. Engagement Team Management
  5. Audit Engagement Performance
  6. Monitoring