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MNCPA PERSPECTIVES

SQMS: First steps to implementing the new quality management standards

August 17, 2022  |  Faye Hayhurst, CPA

SQMS: First steps to implementing the new quality management standards The quality management (QM) standards approved in May by the AICPA Auditing Standards Board are big news for every firm that performs engagements under SASs, SSAEs, or SSARS (i.e., audits, reviews, compilations, AUP and/or examination engagements). Why? Because the QM standards will require every one of those firms to take action — significant action — to design a new system of quality management.

But fear not! There is good news here.

  1. There is time to get it done. The deadline to have a new system designed, in place and operating is Dec. 15, 2025.
  2. Education is coming. There will be numerous opportunities to learn about the standards.
  3. Guidance is coming. The AICPA is working on tools and materials that should be available in spring 2023. Other third-party practice aid providers are also aware of the new standards and will modify their materials in the coming months and years.
 Although there is fairly long timeline for implementation, now is a good time to take step one: Learning about the new standards. The thought of redesigning a firm’s system of quality can feel daunting and overwhelming. Lack of needed knowledge is a heavy burden. But as with any new skill or complex idea, bit by bit it becomes understandable and doable.
 
The MNCPA is here to help. We are offering a webinar at no charge to MNCPA members on Sept. 19, which will provide a big picture overview of the new standards and provide ideas on breaking down what needs to be done.
 
Ignoring the standards is the path to failure; gaining knowledge positions a firm on the path to success.
This webinar won’t be the only time you’ll need to spend learning about the new standards, but it can be your Step One.

Topics: Accounting & Auditing

Faye Hayhurst, CPA

Faye Hayhurst is the MNCPA director of finance and administration. She is committed to using numbers to tell relevant stories, although she also employs words, charts and occasionally clothing to communicate a message. While some have questioned her about the pressures of being the CPA for the MNCPA, Faye considers presenting financial information to fellow CPAs a dream job. Outside of storytelling with numbers, Faye enjoys directing her church's handbell choir, visiting national parks and other scenic places, and checking out the chocolate products at Trader Joe's. Faye can be reached at 952-885-5540 or fhayhurst@mncpa.org.

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