Peer Review

Resources for Quality Management Changes

Dec. 11, 2024

CPA firms have until Dec. 15, 2025, to establish a QM system in accordance with SQMS No. 1. The other standards are effective for engagements beginning, or for periods beginning, on or after Dec. 15, 2025.

Summary article: How the new QM standards may affect peer review

The AICPA Auditing Standards Board and Accounting and Review Services Committee released quality management standards designed to update quality control and better reflect the need for greater emphasis on risk assessment, new technology, and the growing use of external service providers.  

The quality management standards and related engagement standards are:

• Statement on Quality Management Standards (SQMS) No. 1, A Firm's System of Quality Management;
• SQMS No. 2, Engagement Quality Reviews;
• SQMS No. 3, Amendments to QM Sections 10, A Firm's System of Quality Management, and 20, Engagement Quality Reviews;
• Statement on Auditing Standards No. 146, Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards; 
• Statement on Standards for Accounting and Review Services No. 26, Quality Management for an Engagement Conducted in Accordance With Statements on Standards for Accounting and Review Services; and
• Statement on Standards for Attestation Engagements (SSAE) No. 23, Amendments to the Attestation Standards for Consistency With the Issuance of AICPA Standards on Quality Management.

Take Advantage of Free Tools

Resources and information to support quality management implementation are available at aicpa-cima.com/auditqm.

They include:

• A free interactive practice aid with an accompanying Example Risk Assessment template tool to help you implement SQMS No. 1 (AICPA membership is needed to unlock this content). There are versions for sole practitioners and small- and medium-size firms;
• A document mapping the current system of quality control (SQCS No. 8) to the new system of quality management (SQMS No. 1);
• Quality management standards and related guidance; and
• A to-do checklist for firms.

Other learning opportunities as the QM standards are implemented include:

• Read the PRB meeting highlights and materials;
• Join any or all of the four-part New Quality Management Standards Webinar Series;
• Take the self-study course (eight hours of CPE) Understanding and Implementing the New Quality Management Standards; and
• Attend the AICPA Peer Review Conference July 28–30, 2025, in San Diego, for information and networking on the new standards. See full list of "CPE and Events for Peer Reviewers."