AICPA offers quality management practice aid

The American Institute of CPAs issued a new practice aid Thursday to help auditors and accountants set up a quality management system at their firms ahead of a required deadline, while also asking the Internal Revenue Service for a contingency plan in case a government shutdown happens.

Creating such a system is a requirement of the AICPA's new quality management standards, which take effect Dec. 15, 2025.

The free practice aid describes how to apply a risk-based approach and customize it to the specific firm. The document comes in different versions for sole practitioners and for small and midsized firms. Practitioners can download the appropriate version of the practice aid here.

The AICPA's recent Statement on Quality Management Standards No. 1, A Firm's System of Quality Management, requires firms to apply a risk-based approach in designing, implementing and operating a quality management system, while taking into account the unique nature of their firm and engagements. 

"Quality management is critical to the delivery of high-quality services by CPAs and is a cornerstone of meeting our public interest objectives," said AICPA chief auditor Jennifer Burns in a statement. "While the new QM standards created a scalable system for firms to customize their risk assessment, this new quality management practice aid gives practical guidance on how to assess quality risks and then tailor a firm's policies and procedures based on a firm's needs and circumstances. This practice aid, combined with our other QM resources, provides an excellent platform for firms as they implement the new standards." 

The interactive practice aid works in combination with the AICPA's Example Risk Assessment template, which provides a starting point for each component and a library of quality risks and responses. Firms can employ the tools to identify the quality risks to their practice and the right responses. The AICPA's quality management resource page provides that tool along with a crosswalk document summarizing the changes in SQMS No. 1 from the previous quality control standard. 

IRS contingency plan during shutdown

Separately on Thursday, the AICPA sent a letter to the IRS and the Treasury Department asking for a contingency plan for the IRS in case a government shutdown happens this weekend. The Treasury later posted its contingency plan, which envisions that approximately two-thirds of the IRS workforce (about 60,000 out of 90,000 employees) would be furloughed (see story).

"We are deeply concerned that a government shutdown with the IRS operating at only a fraction of what is deemed to be its essential workforce would result in a huge strain on taxpayers and practitioners," said the AICPA letter.

The AICPA pointed to different effects that a smaller workforce would have on taxpayers and tax practitioners.

"We recognize that processing of tax returns and collection of money is a critical government function that should continue regardless of a government shutdown," said the letter from AICPA Tax Executive Committee chair Blake Vickers to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel. "Therefore, at a minimum, taxpayers should have recourse to protect their rights and property. The IRS keeping more essential positions working during the shutdown would help make the 2023 extended filing season operate as smoothly as possible and allow for a smooth start to the 2024 filing season," Vickers wrote.