Whereas in the past quality was mainly assured by internal agreements and loose records in the form of instructions, work programs, and checklists, SQMS 1 is about demonstrable quality management. This demonstrability should be expressed in a good connection between quality objectives, quality risks, and measures with the aim of turning audit firms – more than is currently the case – into ‘learning’ organizations and thereby raising the quality of the accountancy sector as a whole to an even higher level. And everything with a continuous focus on improvement and demonstrability.
Novak plays an important role for SMB accountancy firms in the transition to the new accountancy rules. For these offices, an 'SQMS-proof' quality management system is available with which offices are completely relieved: the Novak Quality System. The basis of the transition to SQMS-proofing lies in the new Quality Framework Accountancy (QFA) that has been integrated into it. This framework is also available for offices with their own manuals that are looking for a ‘coat hanger’ to align their own content with the new office regulations.
SQMS 1 doesn't just replace SQCS 8, but also forces offices to deal with and manage quality more consciously. First think, then do. It means that what many offices were already doing well must now be formally recorded. This also applies to things that are not (completely) going the right way now, including a record of their rectification. The point is to demonstrate that quality does not arise by chance, but that it is consciously focused on, monitored, and improved.
For SMB accountants who have now immersed themselves in the new accountancy regulations, SQMS 1 feels like quite a challenge. In addition, it raises many questions because these accountancy regulations are ‘scalable’. How do I know what applies to my firm? The new regulations require more structure, attention, and documentation, and therefore also take more time.
Both for users of the Novak Quality System and for offices with their own manuals, Novak developed the Quality Framework Accountancy in the existing quality management software WoodWing Scienta. A framework that includes the technical functionalities in the software that allow users to efficiently:
The transition from SQCS 8 to SQMS 1 is radical, but it's definitely not like the world for accounting firms is starting from scratch with these new accountancy regulations. That is why Novak has chosen to integrate the QFA into the existing Novak Quality System. It is like a shell around the current content of the quality system that is completely attuned to the new firm regulations.
At the moment, accountancy firms without a PCAOB registration are busy shaping the transition to SQMS 1. With the QFA, Novak offers these organizations a practical tool and corresponding support to shape and manage the transition to SQMS 1 as efficiently as possible.
Recording quality objectives, quality risks and measures in Microsoft Word or Excel can be an excellent basis for mapping the relationship between these three elements. However, using this as a starting point for a complete SQMS 1-proof quality management system is not enough, unless you have a one-man office. Since 2007, the Novak Quality System has been available exclusively in WoodWing Scienta software. In cooperation with WoodWing Scienta, Novak developed the new QFA, seamlessly linked to the existing Novak Quality System to offer SMB accountancy firms an integrated solution in which quality objectives, quality risks, and measures including monitoring, remediation, and evaluation are directly linked. In such a way that the attention to quality within the audit firm is truly demonstrable.
Now, there is a practical solution that both small and medium-sized accountancy firms can use. The software also offers various conveniences, such as the option to create overviews and ‘to do’ lists, and makes the development process in the area of quality transparent and clear. Moreover, as a user you decide how rigid the QFA should be.
The introduction of SQMS 1 will take place on December 15, 2025, for accounting firms without a regular PCAOB registration. PCAOB registered firms follow a different set of regulations.
The transition from SQCS 8 to SQMS 1 means that firms must record more. Record matters that really matter, with a focus on matters that do not go well and situations in which laws and regulations are not or not sufficiently complied with. The new accountancy regulations are therefore a lot more focused, which offers opportunities for both accountancy firms and the accountancy sector as a whole. After all, by organizing quality management structurally and demonstrably, not just the accountancy firm but – ultimately – the entire accountancy sector becomes more professional.
The transition that SQMS 1 entails – a continuous focus on learning and improvement, and thus on demonstrable quality – is irreversible. This risk-oriented development has also already begun in other industries. Accounting firms will have to learn to put this into practice. Novak supports SMB accountancy firms across the board, which includes various free webinars (late 2025 and throughout 2026) to inform members about what is coming up and what the impact of the new SQMS 1 accountancy regulations will be.
Novak will also offer various courses for which members can register via the Novak Training website. In addition, as mentioned, there is the 'SQMS-proof' Novak Quality System including the integrated QFA, which is available in its entirety in WoodWing Scienta. Offices wishing to continue using their own manuals don't need to despair: the QFA can also be integrated into those manuals.
In case it wasn't clear yet: Novak actually offers everything the SMB accountancy firm needs to get started seriously and effectively with SQMS 1! With the imminent radical changes on the horizon, it is nice to know that, as an accounting firm, you are not alone.
Disclaimer
This article provides a comparison between the Dutch transition from NVKS to SKM1 and the international quality management standard SQMS 1. The information is intended for firms that follow IAASB-aligned quality management standards. PCAOB-registered firms are subject to PCAOB quality control standards, which differ from SQMS requirements; therefore, this article does not apply to PCAOB-registered firms.