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New AICPA Quality Management Standards: Implementing a Compliant and Effective Quality Management System

Recording of a 110-minute CPE video webinar with Q&A

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Conducted on Wednesday, July 24, 2024

Recorded event now available

or call 1-800-926-7926

This webinar will address the requirements of the AICPA's Auditing Standards Boards' new quality management standards. Our panel of CPAs will review the components of the latest standards, explain how the requirements vary based on the size and type of engagement, and provide recommendations for establishing an effective quality management system.

Description

The scope of the AICPA's new Quality Management Standards is far-reaching. The standards require the creation and implementation of a new quality management system and impact all attestation engagements (audits, compilations, reviews, examinations, performance audits, agreed-upon procedures, etc).

The Quality Management Standards include four new standards, each designed to enhance the quality of CPA firms' audits:

  1. SQMS (Statement on Quality Management Standards) No. 1, A Firm's System of Quality Management
  2. SQMS No. 2, Engagement Quality Reviews
  3. Statement on Auditing Standards (SAS) No. 146, Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards
  4. Statement on Standards for Accounting and Review Services (SSARS) No. 26, Quality Management for an Engagement Conducted in Accordance with Statements on Standards for Accounting and Review Services

The most notable change is the requirement contained in SQMS 1 to establish a monitoring program resulting in an annual evaluation of a CPA firm’s system of quality management over its auditing and attest services. This system must be in place by December 15, 2025.

Implementation of the standards is imminent; they are effective for engagements with periods beginning on or after Dec. 15, 2025, with earlier implementation encouraged. Specific to SQMS 1, firms are required to design and implement a customized system of quality management by December 15, 2025, with its first evaluation completed within one year. Auditing and accounting professionals must understand the new guidelines and how to implement the new standards effectively.

Listen as our panel of accounting professionals explains the content of the new quality management standards and offers advice on expeditiously establishing a compliant and effective system.

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Outline

  1. New AICPA Quality Management Standards: introduction
  2. SQMS No. 1 - A Firm's System of Quality Management
  3. SQMS No. 2 - Engagement Quality Reviews
  4. SAS No. 146 - Quality Management for an Engagement Conducted in Accordance with GAAS
  5. SSARS No. 26 - Quality Management for an Engagement Conducted in Accordance with SSARS
  6. Recommendations to facilitate implementation of a new quality management system

Benefits

The panel will cover these and other critical issues:

  • Identifying an engagement partner and a quality control reviewer
  • Scaling audit risk procedures based on the nature of an engagement
  • Tips for effectively implementing a compliant and effective quality management system
  • Documenting the system of quality management
  • Monitoring and annual evaluation requirements

Faculty

Johnson, Marcy
Marcy Johnson
Managing Director
Grant Thornton

Ms. Johnson is the Managing Director, National Audit Quality and Risk at Grant Thornton LLP (US). 

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Reyhl, Duane
Duane M. Reyhl, CPA, CGMA
Partner
Andrews Hooper Pavlik

In addition to his work supervising and performing audit and accounting engagements, Mr. Reyhl authored an AICPA...  |  Read More

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