Four Standards Reflect a More Risk-Based, Scalable and Customized Approach to Quality
NEW YORK (June 6, 2022) -- The American Institute of CPAs’ Auditing Standards Board and Accounting and Review Services Committee have collectively released four new quality management standards designed to improve a CPA firm's risk assessment and audit quality.
The new standards modernize quality control and reflect new realities in practice, such as an increased emphasis on risk assessment, changes in technology and the growing use of external service providers. The four standards are:
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,” said Sara Lord, CPA, chair of the Auditing Standards Board (ASB) 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 are effective Dec. 15, 2025, and the AICPA suggests firms begin the implementation process now. The standards have been adapted for use by CPA firms in the United States based on the International Auditing and Assurance Standard Board's quality management standards, which take effect Dec. 15, 2022.
“The ASB’s outreach and feedback through the public comment process significantly helped to shape the final standards,” said AICPA Chief Auditor Jennifer Burns. “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.”