What is SQMS 2?
SQMS No. 2: Engagement Quality Reviews sets out the requirements and guidance for firms to conduct an engagement quality review (EQR). Additionally, the standard provides guidance for the qualifications, eligibility, responsibilities, and appointment of an engagement quality reviewer (EQ Reviewer). While the extant (SQCS No. 8) included both Quality Control Policies and the Engagement Quality Control Review (EQCR), SQMS 2 was created as a separate standard to emphasize the importance of the EQR to the system of quality management.
This is also part of a larger shift from a “quality control” or “policies-based” mindset to a comprehensive “quality management” or “systems-based” approach. SQMS 2 works alongside SQMS 1 and the revised engagement-level standards (like SAS 146, SSARS 26, and SSAE 23) to create a robust, proactive system of quality management that permeates every level of the firm.
To dig deeper, visit the original article on the Thomson Reuters blog.