Implementing QC 1000 and SQMS 1: Top 10 Training Tips

Posted on March 28, 2025 by Mike Walworth | Tags: QC 1000, Quality Management Standards, SQMS 1,

The new quality management standards (QC 1000 and SQMS 1) are applicable for firms beginning December 15, 2025. In this post, we discussed the mandatory and other training requirements for audit firms found within QC 1000. Looking for help with implementing QC 1000 and SQMS 1, specifically improving your training to comply with the new standards? Look no further than this blog which outlines our top 10 training tips for L&D professionals at firms.

Help set the “tone at the top”

Per the PCAOB Release regarding QC 1000:

Leadership involvement in and commitment to a firm’s QC system sets the tone at the top and drives clear expectations regarding the importance of audit quality. We observed positive behaviors where firms have placed an emphasis on the importance of audit quality through extending accountability beyond engagement partners to other key leaders at the firm, such as audit quality leaders, technical experts, and office leaders, through performance management processes.

Our long-time client, a member firm of a global network firm located in the Caribbean, is a prime example of why setting a proper “tone at the top” is so important. During our annual update accreditation training for firm personnel in the investment management, insurance, and enterprise industries, senior leadership attends the training, sits in the front row, and is “in it to win it” peppering us with questions and highlighting key points. That enthusiasm trickles down to the staff, emphasizing to them the importance of training and audit quality.

Determine training needs and perform a “gap” analysis

Many of our clients are currently performing a “gap analysis” of their training programs as part of the risk assessment process within QC 1000. Based on their clients and industries served, they are determining their training needs and identifying gaps in their curriculum. They are then deciding whether to build, buy, or rent the missing training. This involves looking at existing subscriptions and determining whether these “all encompassing” subscription packages really have engaging and impactful training amid the hundreds of courses that they offer.

As a result of their gap analysis, a GNF firm came to us asking if we had an online course covering group audits, which was not available via their subscription to a “big box” training provider. We informed them that such a course was “in the works” and that they could get in on the ground floor ensuring it covered exactly want they wanted. Talk about a “win-win” for both parties! Our group audits online course is live on the GAAP Dynamics Learning Library.

Speaking of gap, don’t forget the GAAP!

Most accounting firms do a decent job teaching their new hires about the requirements of their profession, that is auditing. However, many firms neglect GAAP, incorrectly assuming that their young professionals learned it in college. News flash: Most didn’t (or they don’t remember it)! And, to make matters worse, in this post-pandemic with all the WFH that is being done, these professionals are not getting as much “in person” time with managers and partners to learn it on the job, leaving firms exposed.

One of our largest and longstanding clients, a GNF firm in the U.S., recently informed us of a SIGNIFICANT decrease in the amount of technical knowledge of their more junior professionals. We worked with their L&D department and SMEs to help develop and facilitate live, instructor-led technical topic training for their staff, new managers and below.

Remember that industry-specific guidance and IFRS are special

U.S. GAAP has industry-specific guidance for many industries such as banking, insurance, and investment management just to name a few. Be sure to tailor your training plans for auditors in specialized industries as the GAAP is not the same!

Also, although the differences between IFRS and U.S. GAAP have narrowed, they ARE NOT THE SAME and many significant differences remain. Need help with the “other GAAP?” Be sure to check out our IFRS eLearning library!

Training doesn’t happen during busy season, plan accordingly

Due to the seasonality of our jobs, much of the training occurs during the summer/fall months (when we aren’t on busting it trying to get the audit done). However, there is a good chance that whatever was learned in the summer will be forgotten by the time the audit starts.

Here are some things that could help:

Provide them access to the training and/or a resource like the GAAP Dynamics Learning Library throughout the year so they can access it at their moment of need
Develop microlearning to highlight key points of the larger training that is easily digestible
Consider periodic training throughout the year such as quarterly “Lunch-and-Learn” webinars for hot topics
Quiz personnel through the year and add elements of gamification, such as leaderboards and company swag for winners

Develop accreditation programs and/or learning paths

Instead of making training a “free for all” where learners can pick the CPE they want to take (or, most often, what they can take quickly at year end), plan learning paths for your professionals. Such learning plans can be based by level and/or by industry. This takes a bit of pre-planning but it is probably a good idea in the long run giving them the resources they need to do their job correctly. That said, I would give learners a bit of a “choose your own adventure” letting them have some say in their own professional development.

Many of our larger firm clients work with us to design full blown accreditation programs. For example, for one Big 4 client we helped them design and implement their worldwide U.S. GAAP accreditation program. Then, when it looked like IFRS was coming to the U.S., we did the same in the U.S. with an IFRS accreditation program. We followed that up with industry-specific accreditation training for banking, insurance, and investment management.

Consider a blended approach

Simply put, the blended approach is combining several different training modalities into one program. We recommend using asynchronous, online courses to build foundational knowledge. Plus, and this is a little cheeky, you can require them to do it on their own time meaning it won’t affect their chargeability. Then, you save the more expensive, tailored, live, instructor-led training (delivered either in the classroom or via webinar) for more application-based / complex issues, tailoring the discussion to your clients and/or audit methodology.

You cannot deny the facts – it’s expensive to gather everyone in one location for training and, as such, many of our clients are limiting the number of in-person events opting for webinars or online courses instead. That said, said some of our larger clients are doubling down on live training, some even constructing massive training centers!

Drive learner engagement to increase knowledge retention

It is our opinion that most the training being sold on the market today by the large providers is not good training. Why? Because there is no engagement. How does clicking a button to indicate you are still alive on a webinar keep the learner engaged. It doesn’t which is why many participants in webinars are multitasking. Same goes for reading a PDF and taking a test. I was reviewing our competitors the other day for LCvista sales personnel and got 4.5 CPE in less than 15 minutes. That isn’t learning and it is a waste of the firm’s money!

Note, I don’t blame the learner. When the material is dead boring and you are not asking me really to participate, I get distracted by, you know, life. It is our job in L&D to increase engagement. We believe that if the participants are engaged, they’re learning.

Ensure compliance with NASBA requirements

Firms must be “laser-focused” on compliance with NASBA regulations, especially once QC 1000 and SQMS 1 are implemented. This includes developing learning objectives that are measurable. Ever seen a learning objective starting with the firm “understand?” All the time! The problem is that such learning objectives cannot be tested using multiple-choice questions. Also, be sure that all training modalities, including Group Live, have documented elements of engagement. It’s a requirement. In other words, a straight lecture with no participant engagement would not quality for CPE in accordance with NASBA regulations!

Administer pre- and post-course assessments

Many of our larger firm clients are real sticklers on properly written post-course assessment questions ensuring that:

Assessment questions tie directly back to the learning objectives;
Avoiding the use “negative” questions; and
Ensuring all distractors are viable and have the same syntax / length.

One of the things we talk about our webinar, Quality Management Standards (SQMS 1 and QC 1000): What L&D Leaders Need to Know is that firms need to move from a “prove we did it” mentality to a “prove it is effective” mentality. One way to do this is to measure knowledge gain with pre- and post-course assessments. This lets you know (and prove) that the participants learned something.

And, for God’s sake, if you do administer assessments, don’t cheat!

Closing thoughts

We wish you much success with implementing the new quality management standards. If you haven’t already done so, be sure to check out our CPE-eligible replay, Quality Management Standards (SQMS 1 and QC 1000): What L&D Leaders Need to Know, to learn more about them.

Also, be sure to check out our two online courses to help you with implementing the new standards:

Looking to train your entire team? Be sure to reach out to us directly for group discounts!

About GAAP Dynamics
We’re a DIFFERENT type of accounting training firm. We view training as an opportunity to empower professionals to make informed decisions at the right time. Whether it’s U.S. GAAP, IFRS, or audit training, we’ve trained thousands of professionals since 2001, including at some of the world’s largest firms. Our promise: Accurate, relevant, engaging, and fun training. Want to know how GAAP Dynamics can help you? Let’s talk!

Disclaimer
This post is for informational purposes only and should not be relied upon as official accounting guidance. While we’ve ensured accuracy as of the publishing date, standards evolve. Please consult a professional for specific advice.