Aiming to improve firms’ risk assessment and audit quality by modernizing quality control and highlighting new realities in practice – including an increased emphasis on risk assessment, changes in technology and the growing use of external service providers – the AICPA has released the following new quality management standards:
- Statement on Quality Management Standards (SQMS) No. 1, A Firm’s System of Quality Management
- SQMS No. 2, Engagement Quality Reviews
- Statement on Auditing Standards (SAS) No. 146, Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards; and
- 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
“When it comes to quality management, one size doesn’t fit all,” says Sara Lord, chair of the auditing standards board and co-chair of the board’s quality management task force. “The new standards create a scalable system that allows firms to tailor risk assessment based on their particular circumstances and the kinds of engagements they conduct.”
The new standards, which have been adapted for use by firms in the U.S. based on the International Auditing and Assurance Standard Board’s quality management standards, will take effect on Dec. 15, 2025. The AICPA has posted information on a dedicated resource page on quality management and has produced a four-part webinar series on the changes.
“Importantly, we’ve developed a crosswalk to help firms start the implementation process and understand how they can transition from the current quality control standards to the new quality management standards,” adds AICPA chief auditor Jennifer Burns.