What’s the risk?

I’m honored to be a contributor to the latest issue of the Virginia Society of CPAs Disclosures magazine. Together with Diane Walker, CPA, a partner from Johnson Lambert LLP, we covered the updated quality management standards that focus on a risk-based approach to planning and performing audits.

Audit quality is a crucial element for the audit profession, as it helps ensure public trust. It’s not just about ticking boxes, but rather about ensuring that the audit process is performed thoroughly, timely, and efficiently. This is where the updated quality management standards come into play, as they provide guidance on a risk-based approach to planning and performing audits.

It’s understandable that implementing the new standards may be a challenge for some firms, and it’s a good idea to start preparing early, especially since the standards will be effective for periods beginning on or after December 15, 2025. It’s important for firms and teams to assess their current organizational structure and staffing and make necessary adjustments to ensure they are in compliance with the new standards.

Read the full article here.