SQMS No. 2 and the Search for Qualified Reviewers, What Audit Firms Need to Know

Published on25 August 2026

A partner three weeks from signing an opinion starts running through names for who can serve as the engagement quality reviewer, and the list gets shorter with every name. Not a staffing accident, it’s the exact scenario SQMS No. 2 was written around.

CPAClub’s Drew Carrick breaks down what the standard actually requires of a reviewer, why the eligible pool is smaller than most firms expect, and why the standard itself points to an answer many firms haven’t considered yet.

What’s covered: 0:00 – The reviewer roster that runs out of names 0:30 – What SQMS No. 2 actually is 1:05 – How it’s different from SQMS No. 1 and the PCAOB’s QC 1000 1:45 – What the standard requires of a reviewer 2:25 – Why the eligible pool shrinks so fast 3:00 – Why the standard allows external reviewers by design 3:25 – Where this leaves firms searching for one

Learn more about CPAClub: https://cpaclub.cpa

CPAClub helps audit firms navigate quality management, regulatory compliance, and engagement quality review requirements under SQMS No. 1 and No. 2. Subscribe for weekly insights.

#SQMS #EngagementQualityReview #CPAClub #AuditFirms #AccountingFirms #QualityManagement #AICPA

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