CMVM updates Guide for the Application of the Audit Quality Indicators
7 March 2021
Today, CMVM disclosed the updated version of the 'Guide for the Application of the Audit Quality Indicators'.
The updates published today aim to simplify certain indicators, such as "Hours per audit phase". Some concepts are also clarified to ensure greater consistency in the application of the AQI (Audit Quality Indicators) in the indicators "Quality Control Results", "Experience", "Responsibilities under Management" and "Teams Setup".
This version of the Guide also provides for the extension of the scope to the eleven auditors of Public Interest Entities with a larger dimension (compared to the six considered in the initial version of the Guide). These auditors are also expected to report the Audit Quality Indicators on the firm's audit quality indicators and metrics and audit projects, from a total sample of 30 economic groups. This information will be reported until July 31, 2021, with reference to the data for the year ending 31 December 2020.
The update of the Guide reiterates the use of eight indicators that obtain useful information on several factors that contribute to the quality of the audit, from the perspective of the audit firm or the audit project:
- Teams setup;
- Responsibilities under management;
- Staff turnover;
- Hours per audit phase;
- Quality control results; and
- Quality control functions.