Quality Management Webcast Series

SQMS No. 2, Engagement Quality Reviews, sets out requirements and guidance for firms to conduct an engagement quality (EQ) review. The standard also addresses the qualifications, eligibility, responsibilities, and appointment of an EQ reviewer.

The predecessor standard, SQCS No. 8, combined quality control policies with the engagement quality control review. SQMS No. 2 was issued separately to highlight the importance of the EQ review within a firm’s system of quality management.

SQMS No. 2 formalizes and strengthens the review process through clarified guidance and enhanced documentation requirements. It also distinguishes the responsibilities of the firm from those of the EQR reviewer, ensuring greater accountability and transparency.

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Key Topics

• Overview of engagement quality reviews and the firm’s responsibilities
• Requirements for engagement quality reviews and appointing reviewers contained in SQMS No. 1
• Timing of engagement quality reviews
• Performing an engagement quality review
• Considerations for sole practitioners

Learning Outcomes

• Recall the requirements of SQMS No. 1 and SQMS No. 2 related to engagement quality reviews.
• Recall the purpose for an engagement quality review and how the review enhances firm quality.
• Identify considerations for sole practitioners.

Who Will Benefit

• Sole proprietors of audit and assurance firms
• Responsible partners and staff at small- and medium-sized audit and assurance firms
• Engagement quality reviewers

Other webcasts on Quality Management that may interest you:

• Quality Management: My System is Set Up -- Now What?
• Quality Management: Performing a Root Cause Analysis
• Quality Management: Preparing for Peer Review

With firms now operating under their newly designed and implemented systems of quality management, the next major question is often: What will peer reviewers be looking for?

This webcast provides a practical look at how a firm’s system of quality management may be viewed in the peer review process as the profession transitions into the first cycle of QM-informed reviews.

This session is designed for firms, especially sole practitioners and small- and medium-sized firms, that want to better understand how their system may be evaluated and where they should focus their attention now.

You’ll explore likely areas of focus in an early QM-era review, including:

• Documentation, monitoring and remediation activities
• The identification and evaluation of findings and deficiencies
• How firms can distinguish between isolated issues and matters that may indicate a broader problem in the system

The session will also discuss practical considerations for firms that are still refining their QM processes in real time.

Because the first wave of reviews will naturally surface new questions and practice issues, this webcast is intentionally framed around current expectations, likely areas of focus, and practical readiness.

Key Topics

• Early peer review readiness under the quality management standards
• What peer reviewers may focus on in the first cycle of QM-informed reviews
• A review of peer reviewer checklists that will be applied during the firm’s review
• Distinguishing isolated issues from broader quality management concerns
• Practical readiness considerations for sole practitioners and small- and medium-sized firms
• Current expectations, emerging questions, and what may evolve as practice develops

Learning Outcomes

• Identify the areas of a firm’s system of quality management that are likely to receive early attention in the peer review process.
• Recognize how findings and deficiencies may be evaluated in the context of a firm’s overall system of quality management.
• Analyze practical steps firms can take now to improve readiness for an initial QM-era peer review. 

Who Will Benefit

• Sole proprietors of audit and assurance firms
• Responsible partners and staff at small- and medium-sized audit and assurance firms
• Individuals assigned ultimate or operational responsibility for the firm’s system of quality management
• Firm personnel involved in monitoring, remediation, and annual evaluation activities
• Practitioners who want to better understand how their QM system may be evaluated in peer review