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SQMS-implementation-checklist

This document provides a checklist for practitioners to prepare for the new quality management standards set by the AICPA. It outlines steps such as understanding the standards, performing risk assessments, and establishing ongoing monitoring processes. Resources are available to assist in implementation, including webcasts, practice aids, and templates.

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Editorial Buxi
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113 views3 pages

SQMS-implementation-checklist

This document provides a checklist for practitioners to prepare for the new quality management standards set by the AICPA. It outlines steps such as understanding the standards, performing risk assessments, and establishing ongoing monitoring processes. Resources are available to assist in implementation, including webcasts, practice aids, and templates.

Uploaded by

Editorial Buxi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Ready for

the new quality


management
standards?

This checklist provides tips to help practitioners


prepare to implement the QM standards.

Gain an overall understanding of the AICPA standards. Gain an understanding of the risk assessment process.
®

The AICPA has developed the following resources


to help you: • Attend the webcast: “New Quality Management
Standards: A Practical Approach to Risk Assessment
• Executive summaries of the standards and Response.”
• Mapping of extant AICPA quality control standards • Review chapter 2: “Overview of Risk Assessment
and new AICPA quality management standards Requirements” of the practice aid for your size firm.
• Webcast series
Download the accompanying Example Risk
• Practice aids for sole practitioners and for Assessment template.
small- and medium-sized firms and Example Risk
Assessment template (AICPA member access) • Watch the video on how to get the most
value from the practice aid and Example Risk
• CPE self-study course
Assessment template
• A series of articles in the Journal of Accountancy
• Review Chapter 3: “Library of Quality Objectives,
Potential Risks, and Potential Responses” of the
All resources are available to browse and download practice aid for your size firm.
on the AICPA Quality Management page.
Perform the risk assessment.
Download the appropriate version of the practice aid
to develop an implementation plan: • Establish the quality objectives required
by the standard.
• Review Chapter 1: “Overview of Statements on
Quality Management Standards” of the practice aid • Identify and assess quality risks.
for your size firm.
• Design and implement responses.
• Determine who within the firm will take ownership
and lead the implementation process. • Identify information indicating the need to add/
modify quality objectives, quality risks or responses.
• Determine the resources (human, intellectual and
technical) needed for successful implementation.
• Talk with your peer reviewer about your
implementation plan.
• Determine how information will be documented.
• Determine a timeline.

New quality management standards checklist | 1


Continued from the previous page

Don’t miss a quality risk. Prepare documentation.


• Understand the conditions, events, circumstances, • The firm is not required to document the consideration
actions or inactions that may adversely affect of every condition, event, circumstance, action or
the achievement of the quality objectives. inaction that may give rise to a quality risk.
• Risk = how the conditions, events, circumstances, • Documentation of the SOQM will likely differ
actions or inactions may adversely affect the depending on the firm’s complexity.
achievement of the quality objectives.
• Documentation should be sufficient to:
• Consider which risks have a reasonable possibility of:
— Support a consistent understanding of the
— Occurring; and SOQM by personnel, including their roles and
responsibilities with respect to the SOQM
— Individually, or in combination with other risks, and performing engagements.
adversely affecting the achievement of one or more
quality objectives. —S
 upport consistent implementation and operation
of the responses.
• Consider how, and the degree to which, the conditions,
events, circumstances, actions or inactions may — Provide evidence of the response’s design,
adversely affect the achievement of the quality implementation, and operation to support the
objectives. SOQM by the responsible individual(s).
• Risk assessment is iterative and, as such, quality
Establish a process for ongoing monitoring
risks will be revisited throughout the implementation
(adjusting for changes) and remediation.
and maintenance of the system of quality
management (SOQM). • Review Chapter 4: “Monitoring and Remediation
Process” of the practice aid for your size firm.
Perform a gap analysis.
• Attend the webcast: “New Quality Management
• Based on the quality risks identified, map Standards — What’s New for Firms’ Monitoring and
current controls — or, as SQMS No. 1 calls Remediation Processes.”
them, “responses to quality risks.”
• Four aspects of the monitoring and
• Identify quality risks without an appropriate response remediation process:
and any current responses that do not map to
a quality risk. — Design and perform monitoring activities.

• Take note of the specified responses within SQMS No. 1 — Evaluate findings and identify deficiencies,
that the firm is required to design and implement. and evaluate identified deficiencies.
Note: These alone are not comprehensive and do not — Respond to identified deficiencies.
fully address all quality risks.
— Communicate.
Design and implement new responses for
those risks that are not addressed.
• Helpful resources for identifying potential responses
to quality risks include AICPA practice aids, third-party
providers of quality management materials and peer
reviewers, among others.
• You may decide that current responses that do not
map to a quality risk are no longer necessary.

New quality management standards checklist | 2


Continued from the previous page

Establish a process for ongoing monitoring A firm’s SOQM is individual to each firm. Take the time
(adjusting for changes) and remediation. (Continued) to understand the requirements and implement a
customized SOQM that provides reasonable assurance
• Factors you are required to consider when of meeting your firm’s quality objectives.
establishing monitoring activities are:
— The reasons for the assessments given
to the quality risks.
— The design of the responses.
— The design of the firm’s risk assessment process
and monitoring and remediation process.
— Changes in the SOQM.
— Previous monitoring activity. For more information, visit
Evaluate the new system and consider the following tips: aicpa-cima.com/auditqm
• A firm leader must evaluate, at least annually, whether
the SOQM provides reasonable assurance that the
objectives of the SOQM are being met.
— Firm leadership is required to make this evaluation,
even in a peer review year.
— The effective date for this evaluation is within
one year of Dec. 15, 2025.

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