Our Quality Management Labels
You may notice labels on specific files beginning with EQM or SQM, and a number. These are labels that correspond to components of our Quality Management system.
You may notice labels on specific files beginning with EQM or SQM, and a number. These are labels that correspond to components of our Quality Management System. Review SQMS No 1. A Firm’s System of Quality Management to learn more about this.
Quality Management Labels
When a file is considered a piece of our Quality Management system, it will have a specific EQM or SQM label.
EQM stands for Engagement Quality Management. These items support our firm at the engagement level. They include TaxDome organizers, communication templates, tasks, engagement road maps, etc.
SQM stands for System of Quality Management. These items support our firm as a whole. For example, our firm policies are SQM documents.
Quality Management Numbers
These files will also be associated with a specific number. Each number corresponds to a component that makes up our Quality Management System.
Some items may also have a secondary category if they fit in more than one category. This is indicated with a decimal (.)—for example, EQM-5.7.
The definitions of the 8 components are referenced starting on page 7 of SQMS No. 1. Paragraphs from the SQMS are referenced in each definition below.
Number | Associated Component | Meaning |
1 | Risk Assessment | Items used to establish quality objectives, identify and assess quality risks, and design and implement responses to address the quality risks. (par. 24) |
2 | Governance and Leadership | Items used to support the firm’s organizational structure and assignment of roles, responsibilities, and authority that is appropriate to enable the design, implementation, and operation of the firm’s system of quality management (par. A32). |
3 | Relevant Ethical Requirements | Items that include Professional Standards, laws, and regulations. Following the firm's policies and procedures is also governed under this component, as described in LEACIF’s Ethics Policy Document. (QM policy) |
4 | Acceptance and Continuance | Items used to address judgments by the firm about whether to accept or continue a client relationship or specific engagement based on the nature and circumstances of the engagement, the integrity and ethical values of the client, and the firm’s ability to perform the engagement. (par. 31ai-ii) |
5 | Engagement Performance | Items that help address the nature, timing, and extent of direction and supervision of engagement teams and review of the work performed is appropriate based on the nature and circumstances of the engagements and the resources assigned or made available to the engagement teams. (par. 32b) |
6 | Resources | Resources include items involving: Human Resources - the hiring, development and retention of firm personnel (par. 33a), Technological Resources - IT applications, processes, or infrastructure (par. A102), or Intellectual Resources - Written policies or procedures, methodologies, industry or subject-matter-specific guides, accounting guides, standardized documentation, or access to information sources (par. A107) |
7 | Information and Communication | Items that support timely internal and external communication for all information (acquired, created, or used) to enable the system of quality management's effective design, implementation, and operation. (par. 34) |
8 | Monitoring and Remediation | Items related to monitoring activities. |
Internal vs. Client-Facing Items
While SQM items are inherently internal, we use the label prefix INT to indicate whether an EQM item is meant to be viewed by Firm members only. Clients should never view internal items.
These items include client organizers filled out by the Engagement Manager, engagement tasks not involving the client directly, client-specific control sheets, and more.
An example label is INT-EQM-4.
Quality Management Sublabels
Some components are broken down into more specific categories to distinguish certain items further. These categories are indicated using sublabels that are added after the QM number. Some of these sublabels are new and items have yet to include these sublabels.
An example of sublabel usage is EQM-2-ONB.
Sublabel | Meaning | Used For | Corresponding Components |
AFS | AFS / Agreed-Upon Procedures | Items related to and used in AFS engagements. | 4, 5 |
MAS | Managed Accounting Services | Items used in and related to Managed Accounting engagements. | 4, 5 |
TAX | Tax Services | Items related to Tax services. | 5 |
ONB | Client Onboarding | Items used to determine if a lead will become a potential client. | 2, 7 |
DSP | Data Security and Privacy | Data Security and Privacy policies, training materials, and organizers. | 3 |
ETH | Firm Ethics | Policies and other materials related to Firm Ethics. | 3 |
HR | Human Resources | Items related to HR, such as Team Member onboarding items and benefits. | 6 |
TN | Technological Resources | Items related to technological resources, such as vendor research and evaluation. | 6 |
IL | Intellectual Resources | Industry or subject-matter-specific guides, accounting guides, standardized documentation, or information sources. | 6 |
ADC | Advertising and Design Content | Items related to design projects, brand elements, and advertising. | 7 |
ADM | Firm Administration | Items used for communication, such as directories, sheets organizers, and communication templates. | 7 |