Implementation of the AICPA Quality Management Standards
Overview
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In June 2022, the AICPA Auditing Standards Board (ASB) issued three interrelated standards on quality management (collectively, the QM standards). The new QM standards represent a significant change in how CPA firms will approach audit and attestation quality in the future, moving from a policies-based approach to a risk-based approach. The new standards will affect every firm that performs engagements in accordance with the SASs, SSARSs and SSAEs. Implementation of these new standards is required by Dec. 15, 2025.
The key changes brought about by the new standards are:·
- New risk-based approach, incorporating a risk assessment process driving firms to focus on quality management tailored to their circumstances
- · Revised components of the system of quality management — two new components, including information and communication
- · More robust leadership and governance requirements
- · Enhanced monitoring and remediation processes
- · New requirements for networks and service providers
The new standards require firms to determine their quality management risks; to determine the root cause for the identified risks; and to develop responses to eliminate the identified risks and avoid engagement non-performance
Highlights
HIGHLIGHTS:
- Overview of the new standards, including discussion of relevant changes to existing quality control requirements.
- Implementation guidance for a risk-based approach to quality management that is customized to small and medium firms, including sole proprietors.
- Analysis and determination of root causes for quality risk determination.
- Examples of responses to identified quality risks.
- Guidance on approaches to monitoring and remediation.
Prerequisites
None
Designed For
Partners, managers and senior accountants of CPA firms performing audits, attestation engagements, and SSARS engagements.
Objectives
- Provide an overview of the new standards
- Provide guidance and examples of how to Implement the new standards.
- Provide guidance on how to determine the root cause of quality risks.
- Provide guidance on how to develop responses to the Identified quality risks
- Review documentation requirements for implementation end evaluation of the firm’s system of quality management.
Notice
Leader(s):
Leader Bios
Eugene Ristaino, Retired, Inactive or Other
Gene Ristaino is the owner of Ristiano & Company and currently provides valuation services for private companies, along with accounting and auditing consultation and technical reviews for small and medium-sized CPA firms. His expertise includes consulting services for real estate developers and construction contractors in project costing and analysis, cost certification, claim support and documentation, expert witness, business valuation and job cost system implementation and improvement.
Gene is a national instructor for the American Institute of Certified Public Accountants (AICPA) and many state societies. He also lectures for many industry associations, and has authored numerous professional education programs, including several seminars and webcasts. Gene provides tailored CPA programs to accounting firms as requested.
Gene is a retired partner of Isdaner & Company, LLC (2016), a local firm of 65 people in the Philadelphia area, and was the director of accounting, auditing and quality control for the firm. Gene managed a diversified accounting practice (over 40 years of experience), which included accounting and auditing and technical engagement review. Gene concentrated in: real estate and construction; healthcare (nursing homes); the governmental and not-for-profit auditing sectors (yellow book), HUD regulations and the Single Audit Act; as well as substantial experience with manufacturing, transportation, retail and service organizations.
Gene has provided expert testimony and/or issued expert reports in numerous litigation support engagements involving real estate transactions, construction claims, family disputes and embezzlement cases. He has provided expert testimony in two Court appearances. He has also prepared construction contract claims, back charge reports, and damage reports in dispute litigation and arbitration.
Gene is “Accredited in Business Valuation” (ABV) and “Certified in Financial Forensics” (CFF) as designated by the American Institute of Certified Public Accountants (AICPA). Gene has also achieved his designation of “Accredited in Business Appraisal Review” (ABAR) from the National Association of Certified Valuators and Analysts (NACVA). Valuation and/or litigation engagements include construction contractors; leisure transportation; travel and tour agencies; manufacturing; real estate investment limited partnerships and LLCs; specialty restaurants; and family limited partnerships. Cases have included dissenting stockholder disputes; buy/sell transaction prices; estate and gift tax issues; and owner disputes. Gene has attended the Business Valuation Course, and the Fair Value Forum developed by the AICPA, the national Valuation Conference presented by the AICPA, as well as many national Forensic and Valuation Programs presented by the National Association of Certified Valuators and Analysts (NACVA).
Gene has a Masters in Taxation (MST) from Villanova University. His practice concentrated in corporate taxation for private companies, with a specialization in the real estate and construction industries.
Gene is a member of the American and Pennsylvania Institutes of Certified Public Accountants and previously served on the Peer Review and A&A Procedures committees for the Pennsylvania Institute of Certified Public Accountants. Gene was a team captain for the AICPA Peer Review Program, and has performed numerous peer reviews under the AICPA Standards.
Gene is a former adjunct professor of tax law for the Masters in Taxation Programs for Villanova University and Philadelphia University. He received his undergraduate BS degree in accounting from Drexel University, and earned his Masters in Taxation from Villanova University.
Non-Member Price $229.00
Member Price $164.00