January 8, 2019

Audit Quality Disclosure Framework

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