The audit and assurance panorama is evolving, pushed by calls for for increased high quality and larger accountability. Current updates to engagement requirements—particularly SAS No. 146, SSARS No. 26, and SSAE No. 23—replicate this evolution. For audit and accounting professionals, understanding these modifications isn’t nearly compliance; it’s about including worth, guaranteeing high quality, and sustaining belief.

Soar to ↓

What are these requirements?

SAS No. 146: High quality Administration for an engagement carried out in accordance with Typically Accepted Auditing Requirements

• SAS 146 is the brand new normal for engagement-level high quality administration. It replaces the standard management sections in earlier requirements, aligning extra carefully with the brand new firm-level high quality administration necessities.
• It clarifies the obligations of engagement companions and groups, emphasizing the function of the engagement companion in reaching audit high quality and the significance of the engagement companion being sufficiently and appropriately concerned all through the audit.

SSARS No. 26: High quality Administration for an Engagement Performed in Accordance with Statements on Requirements for Accounting and Evaluation Companies

• SSARS 26 additionally amends earlier requirements for evaluate, compilation, and preparation engagements to align with high quality administration ideas the place relevant by emphasizing the function of the engagement companion in managing and reaching engagement high quality.
• SSARS 26 additionally consists of a number of extra updates and clarifications exterior of high quality administration.

SSAE No. 23: Amendments to the Attestation Requirements for Consistency With the Issuance of AICPA Requirements on High quality Administration

• SSAE 23 amends the attestation requirements to align with the agency high quality administration requirements.
• The modification clarifies and expands the function of the engagement companion obligations, together with documentation necessities to assist guarantee re-performability.
• Moreover, SSAE 23 offers revised definitions to make clear obligations when working with different practitioners.

Why are these audit requirements vital?

1. A brand new concentrate on high quality administration

SAS 146, SSARS 26, and SSAE 23 will not be simply incremental updates; they symbolize a shift towards a extra proactive strategy to engagement high quality. Whereas among the necessities appear just like the earlier requirements, revised, clarified, and new steerage level to enhanced accountability and the function of the engagement companion in engagement high quality.

2. Alignment with firm-level high quality requirements

These requirements are designed to work with the brand new Statements on High quality Administration Requirements (SQMS 1, 2, and three). Whereas the engagement companion is answerable for guaranteeing high quality, engagement groups should additionally perceive how firm-level insurance policies have an effect on their day by day work and exhibit compliance at each the agency and engagement ranges.

3. Elevated scrutiny and documentation

The brand new requirements name for enhanced documentation—each by way of what’s required and the extent of element anticipated. This consists of reviewing documentation at acceptable occasions all through the engagement and coordinating the engagement high quality evaluate when relevant.

4. Enhanced and clarified expectations

These requirements make clear expectations and supply steerage for the engagement companion’s function in making sound skilled judgments and guaranteeing that anticipated behaviors are communicated and adopted. Moreover, these requirements make clear companion obligations in directing, supervising, and reviewing the work of different workforce members.

Subsequent steps for auditors

Learn the requirements: Evaluation the total texts of SAS 146, SSARS No. 26, and SSAE No. 23. Attend coaching and agency briefings on the brand new requirements.

• Replace agency system of high quality administration: The engagement requirements are efficient for engagements with intervals starting on or after December 15, 2025, which is after the efficient date of the agency high quality administration requirements. The engagement requirements reference the agency’s system of high quality administration and can’t be applied earlier than the agency’s high quality administration system is finalized.
• Assess and adapt your strategy: Consider how your present engagement-level procedures align with the brand new necessities. Establish gaps and replace your processes accordingly.
• Improve workforce communication: Be sure that engagement groups perceive their obligations for high quality administration and know the best way to escalate and handle points.
• Strengthen documentation: Replace your engagement documentation templates and checklists to replicate the brand new requirements’ necessities.
• Leverage methodology and expertise: Use methodology and software program to doc choices and critiques successfully. Evaluation the most recent “Sensible Issues” in PPC varieties and guides to study extra about “earlier than” and “after” implementation.

Implementing the brand new requirements

SAS 146, SSARS No. 26, and SSAE No. 23 symbolize a brand new period of engagement requirements—one that’s proactive and centered on high quality at each stage of the engagement. These requirements are a possibility to reinforce engagement high quality, scale back danger, and ship extra worth to shoppers and stakeholders.

Understanding and embracing these modifications shouldn’t be solely about compliance. It’s about upholding the integrity of the occupation and demonstrating a dedication to excellence in each engagement.

To make sure your agency is totally ready to implement SAS 146, SSARS 26, and SSAE 23, flip to AuditWatch for skilled steerage and sensible coaching. Our specialised packages are designed to equip your workforce with the data and expertise wanted to navigate these evolving engagement requirements with confidence. Contact us at present to find how our tailor-made coaching options may help your agency elevate high quality and keep forward within the altering panorama.