The AICPA Auditing Standards Board on May 12 approved new quality management standards to improve a firm’s risk assessment and audit quality.
The new standards represent a significant change in how CPA firms will approach audit and assurance quality in the future, moving from a policies-based approach to a risk-based approach.
The standards would require firms to assess their individual risks to audit quality and tailor their quality management approaches to address their own, specific risks.
The standards also would guide the engagement partner in determining the level of oversight needed to provide throughout an engagement, and the amount of work they can delegate to other team members, internal or external experts, or specialists. Read more.