The AICPA Auditing Standards Board is proposing the most significant changes regarding quality management since 2006, and SCACPA has formed a task force to respond the the Exposure Draft on behalf of members.

The three new interrelated quality management standards will impact CPA firms at the firm and engagement levels, as well as update existing standards for advances in technology. Because these proposals replace a “one-size-fits-all” model with a scalable approach to firms of all sizes, SCACPA understands that these changes will have significant effects for many smaller South Carolina CPA firms.

Responses to the Exposure Draft are due in August. Follow these links to:

The proposed standards will bring extensive changes to the way firms oversee the quality of their accounting and auditing practice. Thank you for your support of SCACPA advocacy efforts as we protect and promote the credential for South Carolina CPAs.

Resources

Exposure Draft: “Proposed Statements on Quality Management Standards — Quality Management: A Firm’s System of Quality Management; Engagement Quality Reviews/Proposed Statement on Auditing Standards: Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards” (193 pages)

Quality Management Exposure Draft: Comment Letter Template

Further reading: “AICPA Proposes New Quality Management Standards for Firms” (CPA Practice Advisor, May 18, 2021)