What it is
Firms enrolled in the AICPA Peer Review Program have a system review or an engagement review roughly every three years, depending on the work they perform. SQMS No. 1 replaced the former quality control standard, and SQMS No. 2 covers engagement quality reviews. Firms were required to have their system of quality management designed and implemented by December 15, 2025.
This checklist helps a firm get its quality management documentation and engagement files ready before the reviewer arrives. It is a readiness aid, not the reviewer’s checklist.
When to use it
- Six to twelve months before the peer review year end.
- After implementing SQMS No. 1, to check the documentation trail.
What’s inside
- Scheduling: review type, peer review year, reviewer and administering entity
- SQMS No. 1 components: risk assessment, governance, ethics, acceptance, resources, engagement performance, information, monitoring
- Independence, CPE and licensing records
- Engagement file checks for audits, reviews, compilations and must-select engagements
- Areas to self-review first and prior review follow-up
Standard cited
This template follows AICPA Peer Review / SQMS No. 1. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What is the difference between a system review and an engagement review?
A system review covers the firm’s system of quality management and is required for firms performing engagements under SAS, Government Auditing Standards, examinations under SSAE or PCAOB-standards audits of non-SEC issuers. Firms performing only reviews, compilations and certain other services usually have an engagement review.
When did SQMS No. 1 take effect?
Firms had to design and implement a system of quality management under SQMS No. 1 by December 15, 2025, with the first annual evaluation within a year after that.
Related templates
- Audit Planning Memo (AU-C 300)
- Audit Engagement Letter (AU-C 210)
- Review Checklist for AI-Assisted Work
Last updated 11/04/2026. All free templates.