What it is
A system review covers the design of the firm’s quality management system and its compliance, tested through a sample of engagements. Firms that audit under GAAS or GAGAS, or perform SOC or other engagements that trigger a system review, are in this group.
This checklist organizes preparation: scheduling and the engagement list, the SQMS No. 1 documentation the reviewer will ask for, personnel and licensing records, a self-review of selected files, and logistics. It follows the structure of the AICPA Peer Review Standards at a high level and is not an AICPA product, not endorsed by the AICPA and not the reviewer’s checklist.
When to use it
- Three to six months before the peer review due date.
- After the first SQMS No. 1 evaluation, to organize the evidence.
- When the firm adds a must-select engagement type.
What’s inside
- Scheduling and administration
- Engagement population and selection
- System of quality management: eight components
- Personnel, licensing and CPE records
- Self-review of selected files
- Reviewer logistics and summary counts
Standard cited
This template follows AICPA Peer Review Standards / 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 tests the firm’s quality management system and a sample of engagements. An engagement review looks only at selected engagements, for firms that do not perform audits or other engagements that need a system review.
Which engagements must a reviewer select?
The standards require the reviewer to select a reasonable cross section of the practice, with more emphasis on higher-risk engagements, and to select certain types, for example engagements under Government Auditing Standards, ERISA plan audits, FDICIA engagements and SOC 1 or SOC 2 examinations. Your administering entity can give you the list that applies to your review year.
Does the checklist show how the standards treat SQMS No. 1?
It follows the eight SQMS No. 1 components. Reviewers apply the Peer Review Standards in force for your peer review year, and your administering entity can tell you how they apply to your review.
Related templates
- Peer Review Readiness Checklist
- SQMS No. 1 Annual Evaluation Checklist
- SQMS No. 1 Monitoring and Remediation Checklist
- Peer Review Preparation Checklist: Engagement Review
Last updated 11/05/2026. All free templates.