Monitoring a CPA Firm’s Accounting and Auditing Practice -- SQCS No. 3

How do you know when a firm’s system of quality control needs review? Statement on Quality Control Standards (SQCS) No. 3 provides guidance on how a CPA firm implements the monitoring element of a quality control system in its accounting and auditing practice. It discusses the ongoing consideration and evaluation of the:

• Relevance and adequacy of the firm’s policies and procedures
• Appropriateness of the firm’s guidance materials and any practice aids
• Effectiveness of professional development activities
• Compliance with the firm’s policies and procedures