The AICPA Auditing Standards Board has proposed the most significant changes regarding quality management since 2006 with three new interrelated quality management standards which will impact CPA firms at both the Firm and engagement levels. These three proposals are:
- Proposed Statement on Quality Management Standards, A Firm’s System of Quality Management (SQMS No. 1)
- Proposed Statement on Quality Management Standards, Engagement Quality Reviews (SQMS No. 2)
- Proposed Statement on Auditing Standards Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards (QM SAS)
Together, they “emphasize a risk-based approach with revised quality management components, enhanced monitoring process, and more robust leadership and governance requirements.” (from the article linked below)
The Exposure Draft of the proposed standards was made available earlier this year, with the comment period ending August 31.
Because the proposed standards will bring extensive changes to the way firms oversee the quality of their accounting and auditing practice, SCACPA formed a task force to respond the the Exposure Draft on behalf of members.
As you will see in the SCACPA Task Force comments, the Task Force is particularly concerned about the impact of the changes on smaller firms.
Below we provide links to informative resources, including the SCACPA Task Force Comments, that describe the proposed standards and their likely impact on practitioners.
We want also to acknowledge the time and expertise of our Task Force members: Zoe Davis, CPA and Angela Allard of Davis & Company; Joe Beck, CPA of Jones, Pounder & Associates, P.C.; and Lesley Kelly, CPA of DarverKelly, LLP.
We thank you for your support of SCACPA’s advocacy efforts as we work together to protect and promote the CPA profession in South Carolina!
Resources
- SCACPA Task Force Comments
- CPA Practice Advisor article, an excellent summary (about 5 pages)
- Proposed changes Exposure Draft (193 pages)
