Getting Started with Implementing Your System of Quality Management (SQMS 1): Practical Steps for Firms

The new SQMS 1 (System of Quality Management Standard) marks a major shift in how firms manage audit quality - moving away from reactive “quality control” to a proactive, risk-based system of quality management.

If you’re responsible for leading implementation in your firm, the process may feel daunting at first. But with the right structure and mindset, you can set your firm up for success. Here’s a suggested practical roadmap to think about as you start developing your plan.

Assign a Team That Fits Your Firm

Every firm is different - so your implementation plan should reflect your size, structure, and services.

Start by identifying who in your firm will take responsibility for implementation. For smaller firms, this might be a single partner supported by an external consultant. For larger practices, it may involve a working group drawn from audit, compliance, and HR.

Assigning responsibility isn’t just about compliance; it’s about creating awareness and momentum within your firm.

Ultimate responsibility for the SOQM may sit with your firm’s managing partner or an individual with the appropriate authority to own it.

The Operationally Responsible Individual (ORI) will take a hands-on role in implementation. This might be an audit partner already focused on quality, or someone within your risk management structure. Their appointment is a key step - they become the spearhead for action and accountability.

This clarity of ownership ensures that the system has leadership from the top, structure in the middle, and engagement across the team.

Choose the Right Implementation Approach

Quality starts with your implementation approach.  Under SQMS 1, firms must consider their resources and information and communication components - and that includes the technological tools used to design, document, and operate the system.

Selecting the right approach now will not only strengthen your initial implementation but also shape the long-term efficiency of managing your System of Quality Management.

There are typically three approaches:

1. Manual systems - using Excel, Word, and separate documents. These can work for small firms but often lead to inefficiencies and risk of gaps and inaccuracies.

2. Add-on solutions - modules tacked onto existing software. These can be helpful but may lack the depth or flexibility required for a robust System of Quality Management.

3. Bespoke systems - tailored platforms built to your firm’s needs, enabling real-time tracking, assigning, and reporting.

   
   

When choosing, consider upfront effort versus long-term value. Manual methods may be cheaper initially but costly in time later.  A well-designed solution can help your team track progress and compliance seamlessly from day one.

Define and Empower Your Team

“Coming together is a beginning. Keeping together is progress. Working together is success.” — Henry Ford

Your SOQM will only be as strong as the team that designs and operates it. It’s not enough to assign tasks - you need to build a team with structure, authority, and shared goals.

Empowering your team means:

• Giving them time and resources to collaborate and design the system;

• Encouraging open discussion and innovation rather than replicating past processes; and

• Fostering a mindset that looks ahead to the system’s first evaluation date — 15 December 2026.

  
  

SQMS 1 represents a mindset shift from

“how we’ve worked under SQCS 8”

 To

“how we’ll work into the future”.  

Building the right team culture now ensures your System of Quality Management is forward-looking, not backward-facing.

Create Your Plan

As the saying goes: Fail to plan, prepare to fail.

To stay on track:

• Start with your assumed future state - Agree what your firm’s System of Quality Management will look like when it goes live.

• Map out your key milestones - completion of the risk assessment, establishment of your monitoring framework, and training milestones.

• Stick to your timeline and accountability checkpoints.

  
  

A clear, well-structured plan gives your team direction, ensures momentum, and keeps you aligned with the standard’s deadlines.

Raise Firm Awareness

Implementing SQMS 1 isn’t just the responsibility of partners or your quality management team - it touches every part of your firm.  Raising awareness early helps ensure everyone understands what’s changing, why it matters, and what their role will be.

SQMS 1 may lead to updates in procedures across multiple departments - from audit and risk management to HR and IT - and each area will need individuals to own and maintain those changes.

Now is the time to start building that awareness.

• Share regular updates and progress across your teams.

• Hold short briefings or discussions to explain how the new system supports better quality and consistency.

• Encourage feedback and questions - implementation works best when people feel part of the process.

  
  

Creating a cycle of ongoing communication and updates keeps everyone engaged and helps reinforce that SQMS 1 isn’t just about compliance - it’s about driving better quality and improved service delivery.

By embedding awareness throughout your firm, you ensure that your system doesn’t just sit on paper - it becomes part of the way everyone works, thinks, and contributes to quality.