The American Institute of CPAs’ (AICPA) Auditing Standards Board (ASB) has issued an exposure draft (ED), Proposed Quality Management Standards, which includes three interrelated standards that aim to improve how CPA firms manage audit quality.

The standards offer a risk-based approach to effective quality management systems within CPA firms, which aim to improve the scalability of standards and promote a system tailored to the firm and its engagements.

The three proposed standards are:

  • Proposed Statement on Quality Management Standards (SQMS) A Firm’s System of Quality Management
  • Proposed SQMS Engagement Quality Reviews
  • Proposed Statement on Auditing Standards (SAS) Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards


The proposed standards would supersede Statement on Quality Control Standards No. 8, create a new QM section in AICPA Professional Standards and supersede SAS No. 122, as amended, section 220, Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards.

AICPA ASB chair Tracy Harding said: “As the environment in which practitioners offer services becomes more diverse, it’s more important than ever for CPA firms to tailor their quality management processes to their circumstances and maintain and enhance audit quality. Our proposed revisions to the quality management standards offer CPA firms a framework for developing a quality management system that addresses each firm’s practice. The framework is converged with international standards so that firms performing engagements under those standards and generally accepted auditing standards (GAAS) use a consistent approach to quality management.”