The American Institute of CPAs has released a new practice aid to help accounting professionals create a system of quality management (QM) for their firm’s accounting and auditing practice. Establishing such a system is a requirement of new AICPA QM standards, and the effective date for compliance is December 15, 2025.
As part of the QM suite of standards, the Statement on Quality Management Standards (SQMS) No. 1, A Firm’s System of Quality Management,requires firms to apply a risk-based approach in designing, implementing, and operating a quality management system. In doing so, firms need to consider the unique nature of both their firm and their engagements. The free practice aid, Establishing and Maintaining a System of Quality Management for a CPA Firm’s Accounting and Auditing Practice, explains how to apply a such a risk-based approach, as well as how to customize it to individual firms. The document is available in versions for sole practitioners and for small- and medium-sized firms.
“Quality management is critical to the delivery of high-quality services by CPAs and is a cornerstone of meeting our public interest objectives,” said Jennifer Burns, CPA, chief auditor for the AICPA. “While the new QM standards created a scalable system for firms to customize their risk assessment, this new quality management practice aid gives practical guidance on how to assess quality risks and then tailor a firm’s policies and procedures based on a firm’s needs and circumstances. This practice aid, combined with our other QM resources, provides an excellent platform for firms as they implement the new standards.”
The practice aid is among numerous resources the AICPA provides to help firms successfully implement the QM standards. Practitioners can visit the quality management resource page where they can find tools like the crosswalk document that summarizes the changes in SQMS No. 1 when compared to the prior quality control standard.
The new, interactive practice aid is intended to work in tandem with the Example Risk Assessment template, which provides a starting point for each component and a library of quality risks and responses. Firms can use these tools to identify the quality risks to their practice and the appropriate responses to those risks.
Practitioners can download the appropriate version of the practice aid here.