What Was Changed?

The new standard, QC 1000, A Firm’s System of Quality Control, replaces the quality control standards that were adopted by the Board on an interim, transitional basis in 2003 from QC standards originally developed and issued by the AICPA. QC 1000 is an integrated, risk-based standard that includes establishing quality objectives, identifying and assessing quality risks to the achievement of the quality objectives, designing and implementing quality responses to address the quality risks, and monitoring the firm’s QC system and remediating any deficiencies. The new standard encourages an ongoing feedback loop to drive continuous improvement of the QC system. The standard also requires an annual evaluation of the system and annual reporting to the PCAOB on new, non-public Form QC.

The related amendments expand the auditor’s responsibility to respond to deficiencies on engagements under an amended and retitled AS 2901, Responding to Engagement Deficiencies After Issuance of the Auditor’s Report, and related amendments to our attestation standards for broker-dealer engagements. In addition, the related amendments rescind the interim ethics and independence standard, ET 102, Integrity and Objectivity, and replace it with a new standard, EI 1000, Integrity and Objectivity, to better align our ethics requirements with the scope, approach, and terminology of QC 1000.

Additional Information on the New Quality Control and Related Standards 

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Who Is Affected?

A registered firm must design, implement, and operate a QC system in compliance with QC 1000 at all times when the firm is subject to applicable professional and legal requirements with respect to any of the firm’s engagements, and thereafter through the following evaluation date (as determined by the firm). QC 1000 defines an engagement as any audit, attestation, review, or other engagement performed under PCAOB standards: (1) led by a firm; or (2) in which a firm “play[s] a substantial role in the preparation or furnishing of an audit report” as defined in PCAOB Rule 1001(p)(ii).

What Are the Key Changes?

  • Emphasis on accountability, firm culture and the “tone at the top,” and firm governance through requirements for specified roles within and responsibilities for the QC system, including at the highest levels of the firm; and quality objectives that link compensation to quality.
  • New risk-based approach, which should drive firms to proactively identify and manage the specific risks associated with their practice.
  • A set of mandates, including required risk assessment and other QC-related processes, quality objectives, and quality responses—which should assure that the QC system is designed, implemented and operated with an appropriate level of rigor.
  • New requirements that address changes in the audit practice environment, including the increasing participation of other firms and other outside resources, the role of firm networks, the evolving use of technology and other resources, and the increasing importance of internal and external firm communications.
  • Broader responsibilities for monitoring and remediation of deficiencies to encourage an ongoing feedback loop that drives continuous improvement; and
  • A rigorous annual evaluation of the firm’s QC system and related reporting to the PCAOB, certified by key personnel, to underscore the importance of the annual evaluation of the QC system, reinforce individual accountability, and support PCAOB oversight.
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Why Did the PCAOB Adopt QC 1000 and Other Related Amendments?

Since the PCAOB’s adoption of the interim standards in 2003, the auditing environment has evolved in many ways, including evolving and greater use of technology, and increasing auditor use of outside resources, including other firms and providers of support services. Firms themselves have also changed significantly, as has the role of firm networks.

The Board believes QC 1000 will lead registered public accounting firms to significantly improve their QC systems. An effective QC system protects investors by facilitating the consistent preparation and issuance of informative, accurate, independent, and compliant engagement reports. Properly conducted audits and other engagements enhance the confidence of investors and other market participants in the information firms report on. QC 1000 is an integrated, risk-based standard that mandates quality objectives and key processes for all firms’ QC systems, with a focus on accountability and continuous improvement. QC 1000 was designed to be applied by firms of varying size and complexity.

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What Is the Effective Date?

The new standard and amendments are effective on December 15, 2026. Once a firm has been subject to the requirement to design, implement, and operate a QC 1000-compliant QC system for at least five consecutive months, the firm is required to annually evaluate and conclude on the effectiveness of its QC system, as of an evaluation date selected by the firm. This five-month period begins on the earlier of either the effective date of QC 1000 or the date as of which the firm becomes subject to the requirements of QC 1000 (i.e. the firm becomes required to comply with applicable professional and legal requirements with respect to any engagement).

If a firm is required to perform an annual evaluation of its QC system, the firm must file with the Board a report on such evaluation on Form QC no later than 60 days after the firm’s evaluation date.

Resources and Tools for Implementation

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PCAOB staff are developing revisions to certain of the resources and tools listed below to reflect the amendments to QC 1000 and to the QC reporting rule and PCAOB forms, adopted by the Board on September 9, 2026. Those who subscribe to PCAOB email updates will receive notifications when updated guidance is released.

Staff Guidance

The PCAOB staff provides guidance to help firms when implementing QC 1000 and AS 2901. Staff may update this guidance as needed.

QC 1000 Implementation Workshop

Staff Presentations

The PCAOB staff provides information through educational staff presentations.

Note on Effective Date: Some of the staff presentations below reference the original effective date of QC 1000. For the new effective date, please see the effective date discussion above.

 

Knowledge Checks

The series of questions in the links below are designed to check your understanding of important aspects of QC 1000 and AS 2901. The results of these knowledge checks are anonymous and the PCAOB staff does not intend to make them public or to use them in the PCAOB's oversight activities.

Interactive Chart: Structure of the Firm's QC System

This interactive chart provides quick links to specific resources related to requirements of QC 1000.  Click on individual components below for links to resources available.

How Do I Contact the PCAOB?

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Phone: (202) 591-4395   
Form:  Contact Us

Registered firms may also request a consultation with OCA by completing the Consultation Intake Form.