Mastering the New Audit Management Standards: Are you Ready?

Author: Salvatore Collemi

The scope of the AICPA's new Statements of Quality Management Standards (SQMS) will dramatically impact most public accounting firms who have an attest practice. The standards require the creation and implementation of a new quality management system at both the firm-wide level and at the attest engagement-level (e.g., audits, reviews, compilations, examinations, agreed-upon procedures, etc.).

The SQMS include four new standards, each designed to enhance the quality of CPA firms' attest practice:

1. SQMS 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 changes are: (a) two new components to quality management, (b) the enhancement and modernization of the six previous components, (c) the enhancement of the engagement quality all contained in SQMS No. 1 to establish a monitoring program resulting in an annual evaluation of a CPA firm’s system of quality management over its attest practice.

This system must be designed and implemented by December 15, 2025!

Practice professionals responsible for quality control must understand the new guidance and how to implement the new standards effectively.

Publication Date: August 2025

Designed For
CPA firm professionals and sole practitioners who are responsible for monitoring the system of quality management of an attest practice.

Topics Covered

• Overview of the key differences between the extant standards and the new requirements
• New Quality Management Standards - Overview
• Key Differences Between Extant and New Requirements
• Timeline
• What Should We Do Now?
• Resources and Tools

Learning Objectives

• Identify the new requirements of the AICPA's quality management standards
• Identify the key components of the latest standards, explaining how the requirements vary based on the size and complexity of an attest practice
• State recommendations for establishing an effective quality management system
• Identify the area that sees enhanced requirements under the new Quality Management Standards
• Identify the action that should occur between December 15, 2025, and December 15, 2026

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (1 hour), Accounting (1 hour)

Program Prerequisites
Basic Understanding and experience of Quality Management Standards

Advance Preparation
None