Quality Management Standards (SQMS No. 1) Are Now in Effect: A Firm Readiness Checklist
If your firm performs audits, reviews, compilations, or other attestation engagements, the profession’s quality rules have been rebuilt from the ground up. The AICPA’s Statements on Quality Management Standards (SQMS) replaced the older quality-control standards, and the core standard is now in effect.
From quality control to quality management
SQMS No. 1 requires a firm to design, implement, and operate a system of quality management (SoQM) using a risk-based approach: identify quality risks, then design responses tailored to your firm. Firms were required to have their SoQM designed and implemented by December 15, 2025, with the first required evaluation of that system within one year of that date.
The eight components of a SoQM
- The firm’s risk assessment process
- Governance and leadership
- Relevant ethical requirements
- Acceptance and continuance of client relationships and engagements
- Engagement performance
- Resources (including people and technology)
- Information and communication
- The monitoring and remediation process
A readiness checklist
- Have you documented your quality objectives, risks, and responses?
- Have you assigned ultimate responsibility and operational responsibility for the SoQM?
- Is your monitoring and remediation process actually running — not just written?
- Have you scheduled your annual SoQM evaluation and named who signs off?
Quality management, ethics, and engagement performance are recurring CPE themes — see the full course catalog or explore an Unlimited Access plan for your whole team.
Stay current with CPE Options
Keeping up with fast-moving tax and accounting changes is exactly what continuing education is for. Browse our course catalog, lock in a full year with an Unlimited Access plan, or see all CPE plans. Not sure what your license requires? Check your state’s CPE requirements.
This article is general information for tax and accounting professionals and is not legal, tax, or accounting advice. Rules in this area change frequently and have been subject to litigation and agency updates — always confirm the current guidance from the relevant authority (IRS, FinCEN, AICPA, or your state board) before acting or advising clients.
