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Track 9 of 19 · Specialized

Quality management (SQMS)

The AICPA quality management standards: the eight components of SQMS No. 1, quality objectives and risks, monitoring and remediation, engagement quality reviews under SQMS No. 2, and engagement-level quality under AU-C 220.

13 lessonsAbout 52 minSQMS No. 1 · SQMS No. 2 · AU-C 220 · AICPA Peer Review
0 of 13 complete
Syllabus

For: Partners, quality leaders and managers responsible for a firm’s quality system or peer review.

  1. 01From quality control to quality management: what changed and whenWhy the AICPA replaced SQCS No. 8 with a risk-based quality management system, the December 15, 2025 dates, and the eight components of SQMS No. 1.4 min · worked example · 3 self-check questions
  2. 02The firm’s risk assessment process: quality objectives, quality risks and responsesBuild the SQMS No. 1 risk assessment process: establish quality objectives, identify and assess quality risks, design responses, and update them as the firm changes.4 min · worked example · 3 self-check questions
  3. 03Governance and leadership and the roles SQMS No. 1 requiresAssign ultimate and operational responsibility for the system under QM 10.21-.23 and meet the governance and leadership quality objectives in QM 10.29.4 min · worked example · 3 self-check questions
  4. 04Relevant ethical requirements and independence in the quality systemMeet the SQMS No. 1 ethics objectives and specified responses: threats, breaches, annual independence confirmations, and duties of networks and service providers.4 min · worked example · 3 self-check questions
  5. 05Acceptance and continuance of client relationships and engagementsApply the SQMS No. 1 acceptance and continuance objectives, keep fee pressure out of the decision, and respond when information surfaces after acceptance.4 min · worked example · 3 self-check questions
  6. 06Engagement performance: supervision, review, consultation and documentationThe SQMS No. 1 engagement performance objectives: partner involvement, direction and review, skepticism, consultation, differences of opinion and timely file assembly.4 min · worked example · 3 self-check questions
  7. 07Resources: people, technology, intellectual resources and service providersApply the SQMS No. 1 resources objectives to human, technological and intellectual resources, and evaluate resources obtained from service providers.4 min · worked example · 3 self-check questions
  8. 08Information and communication in the quality systemMeet the SQMS No. 1 information and communication objectives, including the complaints policy and external communication about the firm’s system of quality management.4 min · worked example · 3 self-check questions
  9. 09Monitoring and remediation: findings, deficiencies and root cause analysisDesign monitoring under QM 10.36-.48, inspect completed engagements, evaluate findings and deficiencies, investigate root causes and test whether remediation worked.4 min · worked example · 3 self-check questions
  10. 10The annual evaluation of the system and network requirementsPerform the annual evaluation and conclusion under QM 10.54-.56, document the system under QM 10.58-.61, and handle network requirements and network services.4 min · worked example · 3 self-check questions
  11. 11Engagement quality reviews under SQMS No. 2Which engagements need an engagement quality review, who can be the reviewer, cooling-off for former engagement partners, and what the EQR covers and documents.4 min · worked example · 3 self-check questions
  12. 12Quality management at the engagement level: AU-C 220 as amended by SAS 146What SAS 146 requires of the engagement partner: overall responsibility, involvement, ethics, resources, review, consultation, EQR and the stand-back.4 min · worked example · 3 self-check questions
  13. 13Peer review and the quality management standardsHow AICPA peer review interacts with SQMS No. 1: review types, the three-year cycle, ratings, QM-related revisions in PRSU No. 2 and preparing the firm’s documentation.4 min · worked example · 3 self-check questions
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