AICPA’s proposed new quality management standards aim to enhance and maintain a CPA firm’s audit quality
Feb 04, 2021
On February 4, 2021, the American Institute of CPAs’ (AICPA) Auditing Standards Board (ASB) issued the exposure draft (ED), "Proposed Quality Management Standards", that includes three interrelated standards that address the way CPA firms manage quality for their accounting and auditing practices. The standards offer a new proactive, risk-based approach to effective quality management systems within CPA firms, which will improve the scalability of the standards and promote a system tailored to the firm and its engagements.
The ED aligns with the International Auditing and Assurance Standards Board’s (IAASB) quality management standards. The proposed standards include changes such as using the terms quality management and engagement quality review instead of quality control and engagement quality control review, respectively, used in the current standards.
The three proposed standards are:
- Proposed Statement on Quality Management Standards (SQMS) A Firm’s System of Quality Management
- Proposed SQMS Engagement Quality Reviews
- Proposed Statement on Auditing Standards (SAS) Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards
Review the press release and exposure draft on the AICPA's website.
