What it is
SQMS No. 1 asks a firm to design, implement and operate a system of quality management by setting quality objectives, assessing quality risks and designing responses. It does not hand the firm a finished list, so a manual has to be built from the firm’s own facts.
This outline gives the structure: the eight components, prompts for objectives and responses in each, a table to record risk and response with owner and monitoring, the key roles, and the annual evaluation block. Replace each prompt with the firm’s own decision.
When to use it
- Building the firm’s quality management documentation for the first time.
- Updating an older quality control manual to the SQMS structure.
- Preparing for a peer review of the system of quality management.
What’s inside
- System overview and risk-based approach
- Roles for ultimate responsibility, operations, independence and monitoring
- Eight component sections with objectives, policies and a risk table
- Annual evaluation and version history
Standard cited
This template follows 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 are the eight components?
Governance and leadership; the firm’s risk assessment process; relevant ethical requirements; acceptance and continuance of client relationships and specific engagements; engagement performance; resources; information and communication; and the monitoring and remediation process.
Does using the outline show conformity?
No. Conformity depends on the firm identifying its own risks and operating its responses. The outline is a place to document them.
Who must evaluate the system?
The individual assigned ultimate responsibility and accountability evaluates the system on a set date at least annually. The block records the conclusion, deficiencies and remediation.
Related templates
- SQMS No. 1 Quality Objectives, Risks and Responses Register (Excel)
- SQMS No. 1 Annual Evaluation Checklist
- SQMS 1 Monitoring and Remediation Log
- Engagement Quality Review Checklist (SQMS 2)
Last updated 11/05/2026. All free templates.