PROC reviews AICPA and NASBA guidance as firms prepare for new quality-management standards
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Summary
The PROC heard an overview of new AICPA/NASBA resources and the peer-review program manual updates tied to the transition from quality control to quality management; members were reminded that firms must implement the new standards by December 2025.
The California Board of Accountancy’s Peer Review Oversight Committee (PROC) on Aug. 8 reviewed AICPA and NASBA updates to peer-review guidance as firms prepare to implement new quality management standards by the end of 2025. Jeffrey (Jeff) Delizer, a PROC member, summarized updated materials, reviewer alerts and changes to the peer-review program manual.
Why it matters: The transition from a system of "quality control" to a system of "quality management" shifts focus to risk-based oversight within firms and will alter peer-review checklists and procedures. PROC members said understanding the new expectations is essential because the changes could affect how peer reviews are conducted and evaluated in California.
Delizer, who reviewed AICPA and NASBA publications since the PROC’s last meeting, said most recent articles and alerts "were about the new quality management standards" and highlighted the AICPA's updated resources and NASBA's winter 2025 state board report. "The transition from a system of quality control to a system of quality management, which... is a little more than just a semantics change," Delizer said, noting the updates include revised checklists and a refreshed AICPA resources page.
Staff and members discussed implementation timing and training needs. Chair Fausto Hinojosa urged firms to begin obtaining continuing professional education (CPE) and to "start working on that change" because the risk‑based approach could affect peer-review outcomes. PROC members also noted the AICPA’s peer-review prompts, reviewer alerts and NPRC communications as sources of guidance for reviewers and administering entities.
The committee did not take formal action on standards at the meeting but asked staff to continue monitoring AICPA and NASBA updates and to report back with any materials that would inform PROC oversight activities. PROC members and staff indicated outreach and further training discussions with administering entities would be appropriate as implementation proceeds.