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:
- Leadership, Culture, and Firm Governance
- Ethics and Independence
- Acceptance and Continuance of Clients and Engagements
- Engagement Team Management
- Audit Engagement Performance