Dakota CPA Connection Produced by the North Dakota CPA Society
May 2025 | Volume XXXVII | No. 02
Don’t delay: New Quality Management standards nearing Implementing The Standards Required Of Firms
Time is quickly passing for firms that offer audit and accounting services to successfully implement the new quality management standards. Implementation will take time and effort. Those who haven’t started the transition should dedicate resources now in hopes of being ready when the standards take effect Dec. 15, 2025. Keep in mind that firms whose peer review year ends after this date will have their systems reviewed under the new quality management standards — firms that fail to comply may not pass their peer review! Many wonder where to begin and how to bridge the gaps from the current policy-based quality control standards to the new risk-based quality management standards. There is a lot to do and limited time to do it – don’t wait any longer if your firm hasn’t started already. New Quality Management Standards 1 and 2 The new standards will apply to all firms that conduct any audits, attest examinations, financial statement or attest reviews, compilations, or
In This Issue • 2 President’s Message • 3 Exam Passers May 2025 | Page 1
agreed-upon-procedures engagements. • Statement on Quality Management Standards (SQMS) No. 1, A Firm’s System of Quality Management, introduces a new risk-based assessment process and requires firms to design, implement, and operate a system of quality management customized to their practice and engagements. • SQMS No. 2, Engagement Quality Reviews, applies when a firm decides that an engagement quality (EQ) review is an applicable response to address its engagement performance quality management objective. How to Stay on Track Every firm that performs engagements in accordance with the Statements on Auditing Standards (SASs), Statements on Standards for Accounting and Review Services (SSARSs), and Statements on Standards for Attestation Engagements (SSAEs) should have some understanding of the new quality management standards. To keep implementation on track: • Prioritize your firm’s efforts.
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Schedule time to read the standards. Add a recurring meeting to your calendar and invite others in your firm to participate. Consider attending webinars or perusing industry publications to learn from other firms and hear different perspectives on how firms are implementing the new requirements. Engage in conversations internally and externally.
Resources to Help If your firm hasn’t started the transition from a system of quality control to a system of quality management, you’re late to the game, but you still can finish on time. Implementation of the new QM standards is required by Dec. 15, 2025, which is around the corner. Resources and links to information supporting quality management implementation are available on the website at aicpa-cima.com/auditqm (some are available only to AICPA members). Reprinted with the permission of the Iowa CPA Society.
• 3 Members on the Move • 4 Directors Message • 5 Meet our Members
• 6 AICPA New CEO • 7 CPE Opportunities • 8 Management Conf
Continued onBoard page 5 • 9 YP Event • 13 Internship • 11 Meet the Staff • 13 Classifieds • 11 Leadership Academy • 15 Tax Commissioner