The American Institute of Certified Public Accountants (AICPA) has released revised quality management (QM) standards for auditing firms.
What could that mean for your business?
You must ensure that your outsourced auditing firm complies with the new rules. The firm can maintain high quality with its work and minimize risk to your business by following the revised QM standards.
It can help to know a bit about these new changes. This way, you can question your audit firm to whether they are adhering to new standards. The changes are as follows.
- Statement on Quality Management Standards (SQMS) 1, which is the quality management system of a firm
- SQMS 2, which is reviews on engagement quality
- Statement on Auditing Standards (SAS) 146, which is the standard for quality management for an engagement that is carried out per auditing standards that are generally accepted
- Statement on Standards for Accounting and Review Services (SSARS) 26, which is the standard for quality management for an engagement that is carried out as per SSARS
These new standards will be mandatory for all auditing firms by December 15, 2025. However, the AICPA recommends implementing the new measures right away.
What’s the purpose of the revised quality management standards?
Other than the apparent improvement in quality control, there are a few reasons why the AICPA published these new standards. Here is a summary.
- Improve leadership and accountability in auditing firms
- Encourage a proactive approach toward monitoring quality management in auditing firms
- Improve the responsibility of engagement partners to maintain audit quality through solid leadership
What should be your business’s next step be?
Your business should look to work with an auditing firm that has already moving toward complying with these new quality management standards. In turn, you can expect your company’s financial future to be in safe and responsible hands.
Thus, your business can partner with a full-service accounting and bookkeeping service provider like our company, Integrity Accounting Solutions Inc. (IAS). We have more than 220 years of heritage, offering experience and expertise that can work with a diverse range of businesses.
Contact us today to book a free consultation. You can interact with us digitally or in person at one of our offices in Glendale or Long Beach to partner your business with ours to handle all financial matters.
While we are a California-based company, we also serve clients from different parts of the country.
Thank you for your time and consideration.
The devoted team at IAS.