SSARS 26 and Quality Management

Author: Pat Patterson

SSARS 26, Quality Management for an Engagement Performed in Accordance with Statements on Standards for Accounting and Review Services has the purpose of ensuring that certain concepts related to quality management, where appropriate, are consistent between the auditing standards (SAS 146) and SSARSs. SSARS 26 will amend SSARS 21 to ensure that certain concepts related to quality management, where appropriate, are consistent between the proposed auditing standards and SSARSs. Those changes will be discussed in this course. This SSARS will amend SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, as amended, section 60, General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services , (AR-C section 60),1 and section 90.

This course highlights the changes to SSARS 21 due to the new SSARS 26 in the areas of accounting and preparation, compilation, and review engagements. SQMS A Firm’s System of Quality Management will supersede Statement on Quality Control Standards No. 8, A Firm’s System of Quality Control (QC section 10) . Paragraph .05 of QC section 10 states that the section applies to all CPA firms with respect to engagements in their accounting and auditing practice.

Publication Date: November 2022

Designed For
Professionals who have a need to be updated on the requirements and changes in SSARS due to the changes in the SASs should attend.

Topics Covered

• Introduction and Background
• SSARS 26
• Requirements
• SSARS 26Other Explanatory Material
• Some Final Changes to SSARS 26
• Conclusions

Learning Objectives

• Identify and apply the changes in Quality Management that apply to SSARS engagements
• Recognize what and when changes are required
• Describe how to manage, supervise, and educate staff and professionals considering the new requirements
• Identify how to document in the Quality Management system and what is required
• Identify when the amendment to AR-C section 90 included as paragraph 5 of SSARS No. 26 is effective
• Identify the SQMS related to engagement quality reviews that was issued by the ASB, coinciding with the issuance of SSARS No. 26
• Identify how SQMS Nos. 1 and 2, SAS No. 146, and SSARS No. 26 are collectively referred to as
• Identify the SSARS that addresses public interest considerations by encouraging proactive management of quality at the engagement level
• Identify the SQMS that addresses the system of quality management, which forms the foundation for the management of quality

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
A general knowledge of auditing and accounting for professionals.

Advance Preparation
None