IAASB: Exposure Drafts of Proposed International Standards on Quality Management

In this comment letter, the CAQ provides views to the International Auditing and Assurance Standards Board (IAASB) on exposure drafts for the following proposed standards:

• Proposed International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements
• Proposed International Standard on Quality Management 2, Engagement Quality Reviews
• Proposed International Standard on Auditing 220 (Revised), Quality for an Audit of Financial Statements

Broadly, the CAQ expresses support for the IAASB efforts to substantively enhance firms’ management of engagement quality and commends the Board for collaborating with other standard setters on these issues. “We believe that collaboration is important to promote consistency and alignment of the requirements of quality management standards to minimize unnecessary differences or incremental effort that does not benefit audit quality,” says the letter, which provides a wide range of suggestions for addressing potential challenges in implementing the proposed standards.