What the December Deadline Means for Your QMS – And How Inflo Can Help

US audit firms are facing a looming deadline to meet new quality management regulations – and Inflo is working to help them meet it.

The new standards from the American Institute of Certified Public Accountants (AICPA) require every CPA firm that performs audits, attestation, reviews, compilations or agreed-upon procedures to design, document, implement and operate a risk-based quality management system by December 15, 2025.

To do so, firms must assess quality-related risks, tailor policies and procedures, train staff, update monitoring and remediation processes, and embed new governance controls. Missing the deadline could result in noncompliance or failed peer reviews.

Meeting these requirements, along with other recent regulatory updates related to audit quality in the US, can be particularly onerous on smaller firms. With limited staff and tight schedules, keeping up with rapidly shifting requirements can be overwhelming for firm leaders, often resulting in frustration, employee turnover, and even lost business.

Availability for all

Recognizing the pressure these firms face as the December deadline draws near, Inflo is introducing a new program that aims to lessen the burden. It provides complimentary access to the Inflo Quality Management solution for one member within a US-based firm. There is no commitment required and no barriers to getting started.

The offer provides self-serve access to the software with on-demand training resources available. Additional users can be added at any time by moving to a paid upgrade.

“The growth of the auditing profession depends on the success of its smaller firms. Inflo is committed to helping them meet their expanding regulatory obligations so that they can effectively serve their clients and ultimately grow their revenues,” said Inflo CEO Mark Edmondson. “By providing free access to our advanced cloud-based QMS software, we’re ensuring firms of all sizes have the right tools to meet their quality-related obligations with confidence.”

Risk-based regulations

AICPA’s new quality management standards – including Statement on Quality Management Standards (SQMS) No. 1 (“A Firm’s System of Quality Management”) and SQMS No. 2 (“Engagement Quality Reviews”), along with SAS No. 146 and SSARS No. 26 – are reflective of a heightened emphasis being put on audit quality in the US. They are designed to shift the profession from an older, policies-based quality control model to a scalable, risk-based approach that firms can tailor to their unique engagements.

According to AICPA, the new standards modernize quality control and reflect new realities within the profession, including an increased emphasis on risk assessment, changes in technology, and the growing use of external service providers.

The aim is to improve audit and attestation quality, encourage leadership accountability, strengthen monitoring and remediation, and better protect the public interest through scalable systems that align with international standards. Firms must also conduct their first evaluation of their system within one year of implementation.

The quality management challenge

Implementing a quality management system that meets the new standards is proving to be a significant challenge for many firms, particularly smaller ones.

“It is not simply a matter of updating policies or procedures. It requires a fundamental shift in how quality is monitored and managed across the organization,” noted Kara Garfi, Digital Audit Senior Associate​ with Inflo, during a recent webinar, Elevating Audit Quality​: Technology’s Role in Meeting the New Standards​. “With limited resources and competing demands, many firms are finding it difficult to prioritize this complex but essential transformation.”

A common obstacle is the continued reliance on manual processes. Without automation, maintaining consistency becomes a significant challenge. This is especially true for firms with multiple teams, several partners, or offices in different locations. Manual approaches often result in inconsistencies that make it harder to identify and manage risks effectively. This can lead to uneven quality across engagements.

Many firms also continue to use spreadsheets to track quality, Garfi noted. While this might seem like a practical short-term solution, spreadsheets are fragile, prone to errors, and difficult to scale. A single incorrect formula or a missed update can compromise the entire system and significantly reduce confidence in the firm’s ability to monitor quality accurately and efficiently.

Another challenge is the lack of real-time visibility into engagement risks. In many cases, problems are only identified after the fact, when correcting them becomes more time-consuming, costly, and disruptive. This delayed awareness prevents firms from addressing issues proactively or learning from them while the work is still in progress, Garfi pointed out.

“The result is often a reactive approach to quality management. Rather than preventing issues or using early insights to improve processes, firms are forced to respond to problems as they occur,” she said. With the new standards raising expectations, this way of working is no longer sufficient. A more proactive and risk-based approach is needed to ensure sustainable quality across all engagements.

The Inflo answer

Inflo QMS is a cloud-based quality management system that helps firms build, monitor, and refine their approach to compliance with modern standards. It offers tailored system creation, risk monitoring via dashboards, and task workflows with accountability built in.

Additionally, Inflo QMS can be customized to a firm’s unique structure. Hybrid intelligence configures initial quality objectives and risk libraries based on a firm’s size, service lines, and jurisdictions. Users can further tailor objectives, risks, and responsibilities.

Other key benefits of this modern, cloud-based QMS software include:

• ​Centralized risk tracking: Instead of juggling emails, spreadsheets, or siloed notes, everything is visible in one system, with clear ownership and accountability.​
• Consistency across engagements: Templates, prompts, and embedded checks ensure key quality steps are never missed.
• Real-time oversight: Engagement partners, quality reviewers, and firm leaders can monitor progress and risk indicators without waiting for post-engagement reviews.​
• Proactive monitoring: Auditors can spot patterns, identify recurring issues, and take action before they turn into bigger problems.​

​Modern quality management involves using technology to create confidence, reduce administrative burden, and achieve regulatory compliance. Learn how to get started on this path today with Inflo’s free QMS offer: www.inflo.com/qms-offer.