What is System of quality management (SQMS No. 1)?
In short
Under the American Institute of Certified Public Accountants' Statement on Quality Management Standards (SQMS) No. 1, a firm designs a risk-based system of quality management: it sets quality objectives, identifies and assesses quality risks, and designs responses to them.
Key takeaways
- It has eight components, from the firm's risk assessment process and governance to monitoring and remediation.
- Firms had to have their systems designed and implemented by December 15, 2025.
- Leadership evaluates the system at least annually.
Where it's tested
AUD: Engagement Acceptance & Quality Management — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under SQMS No. 1, a firm's system of quality management is built around: