This session will review key CSQM 1 and CSQM 2 requirements and discuss how to document the design and implementation of a SoQM, including monitoring activities. The session will also discuss common SoQM deficiencies found by practice inspection and our experience as monitors, as well as best practices in file documentation and archiving.

All firms are now subject to the new quality management standards. For many firms performing only related service engagements (i.e. CSRS 4200), there is still a lot of confusion about which standards apply to them. By 2025, your firm’s system of quality management (SoQM) must be updated and evaluated annually. Unfortunately, many firms have not adequately documented their quality management policies, let alone implemented the policies or designed adequate monitoring procedures. Many firms performing audit and review engagements have not performed their annual monitoring, assuming this can be done anytime.
Failure to document their SoQM, i.e. prepare a manual (or summary of firm policies) and evaluate the SoQM annually will result in significant reportable deficiencies and in our experience as monitors lead to an automatic re-inspection.

Specific topic areas will include:

• Do compilation engagement files need to be locked down?
• What is a file assembly period and why is it important?
• What happens if I modify a file after the lockdown date?
• What is the difference between completed file monitoring and annual compliance monitoring?

This course is ideal for: Accounting firm professionals who are involved in the planning and management of their firms and/or have been assigned the responsibility for the firm’s quality management system.

Quality management deficiencies can often lead to re-inspections or partial re-inspections. This session will discuss practice inspection expectations based on our experience as firm monitors.