Guide to the AICPA Quality Management Standards
Presenter
James Schmutte,
Professor,
Ball State University
Overview
Over the past few years, the AICPA revamped the quality management standards by issuing Statement on Quality Management Standards 1, 2 and 3 (SQMS 1, SQMS 2 and SQMS 3, respectively), SSARS No. 26 and SAS 146 (Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards). These standards, effective Dec. 15, 2025, modernize quality management standards to reflect an increased focus on risk assessment, technology use, and the presence of outside experts on many engagements. With a risk-based approach, the standards enhance requirements for engagement quality reviews, encourage QMS monitoring, and focus on the entire system of quality control maintained by a firm. We will cover the key provisions of the standards, how to effectively implement them, and what you need to do today to prepare for the required implementation. The earlier your firm begins the transition, the better off you will be.
Learning Objectives:
- Identify key provisions of SQMS 1, SQMS 2 and SQMS 3.
- Recall quality management provisions in SAS 146 and SSARS No. 26.
- Understand the role of firm leadership in establishing quality management standards.
- Recall the requirements for engagement quality reviews.
Major Topics:
- Quality management standards
- SSARS No. 26
- SAS 146
- Risk assessment and risk-based approaches to quality management
- Audit engagement leadership
- Managing technology and the use of external service providers
