AICPA Updates Quality Management Resources
To help firms prepare for the December 15 deadline, the AICPA has updated its quality management resources. The revised Quality Management Practice Aid expands on SQMS No. 1 objectives, clarifies ultimate responsibility for the QM system, and addresses sole practitioner considerations. It provides deeper coverage of the eight QM components, highlighting new requirements, small-firm implementation differences, and practical tools like risk libraries and documentation templates. The aid also clarifies evaluation requirements and expands guidance on documentation. In addition, the AICPA released The Monitoring and Remediation Process for a Firm’s System of Quality Management, which offers requirements, application guidance, and tips for continuous improvement.
Public Sector Current Landscape & Future Recommendations
Government entities rely on strong accounting, auditing, and finance functions to ensure transparency and accountability. But attracting and retaining CPAs in the public sector, and securing quality audit services, remains a challenge. The joint AICPA & NASACT report outlines critical findings and solutions in valuing CPAs, shifting from commodity-based to value-based engagements, strengthening the pipeline, and more! The bottom line is, to sustain accountability in the public sector, we must prioritize CPAs as essential partners in public service, and create an environment where they can thrive.
NASBA & AICPA Update Uniform Accountancy Act
NASBA and the AICPA have issued the 9th edition of the Uniform Accountancy Act which acts as a model piece of legislation that can be used by individual state boards of accountancy to create consistency and uniformity. The new edition includes 3 pathways to licensure as well as changes to mobility requirements. It is important to note that each state must adopt these requirements before they can be applied in that state.
ASB Issues New Exposure Draft on Fraud
On July 2, 2025 the ASB issued a Proposed SAS on fraud in an audit of financial statements. The Exposure Draft, Proposed SAS The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, proposes to supersede AU-C section 240, Consideration of Fraud in a Financial Statement Audit, in AICPA Professional Standards, and amend various other AU-C sections.
Evaluating GAAP Choice
In this week’s blog, we explore the newly released GAAP Utilization Report from the GASB. State and local governments often have flexibility in choosing a financial reporting framework, but what drives that decision? This report offers valuable insights into the factors that influence whether governments adopt GAAP or rely on alternative frameworks. The research highlights key trends across states, counties, municipalities, and special districts, including which states require GAAP and what conditions increase the likelihood of GAAP adoption.
Q2 2025 in Review
This week’s blog covers the activity of the major standard setters in the second quarter of 2025. We will review the issued standards of the AICPA, FASB, and GASB with an update on what to expect next quarter.
Proposed Ethics Changes for SSAE Engagements
The AICPA’s PEEC has proposed targeted changes to the independence rules for SSAE engagements. By updating terminology and adding more examples, the hope is to make it easier to apply the rules to attestation engagements where the subject matter is not a financial statement. This is phase 1 of a 5 phase approach PEEC is taking. Comments are due September 5th.
Standards for Internal Control in the Federal Government – “Green Book”
The GAO recently released the revised Green Book! This 2025 update to the Standards for Internal Control in the Federal Government replaces the 2014 version and includes key changes around improper payments, risk assessment documentation, information security risks, and more. The revised standards take effect for FY 2026, with early implementation permitted.
Disclaimer: The information contained within this blog is provided for informational purposes only. Viewing this material does not qualify for CPE credit. Additionally, this general knowledge is not intended to substitute for obtaining accounting, legal, or financial advice from a professional accountant with specific knowledge of your organization. Finally, watching this blog and/or subscribing to the newsletter do not create an accountant-client relationship.
