An accounting and review services quality management proposal issued Thursday by the AICPA Accounting and Review Services Committee (ARSC) is designed to achieve consistency, where appropriate, with the proposed quality management standard for audit services.
Thursday's release follows the issuance in February of a trio of AICPA Auditing Standards Board (ASB) proposals designed to make audit firm quality management systems more tailored to the specific nature and circumstances of an individual firm and its engagements.
One of the proposed standards is specific to auditor responsibilities for quality management at the engagement level for an audit of financial statements and the related responsibilities of the engagement partner.
ARSC's proposed revisions are designed to ensure that certain concepts related to quality management, where appropriate, are consistent between the auditing standards and the Statements on Standards for Accounting and Review Services (SSARSs).
The proposed ARSC standard would amend the following sections of SSARS No. 21, Statement on Standards for Accounting and Review Services: Clarification and Recodification, as amended:
- AR-C Section 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services; and
- AR-C Section 90, Review of Financial Statements.
"As a profession we are committed to quality and continue to evaluate how we can support the delivery of quality services through changes in the standards," AICPA Chief Auditor Jennifer Burns, CPA, said in a news release. "ARSC is proposing changes that do just that — support the quality of SSARS engagements. These changes are also aligned with similar changes that are being considered by the ASB."
ARSC is proposing that the amendments would take effect for SSARSs engagements for periods ending on or after Dec. 15, 2024, which is consistent with the date that the ASB is currently considering for its proposed quality management standards.
The proposed SSARS also includes a technical correction to AR-C Section 90 that is proposed to take effect upon issuance.
Comments can be submitted at CommentLetters@aicpa-cima.com by Jan. 31, 2022.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA's editorial director.