BRIEF DESCRIPTIONS OF OUR INTERNAL QUALITY REVIEW PROCESS
OBJECTIVES: To establish standards on quality control for procedures of our accounting firm, in general and for the work delegated to assistants on an individual basis. SPECIFIC OBJECTIVES: 1. As to Professional Requirements I must adhere to the principles of Independence, Integrity, Objectivity, Confidentiality, and other ethical standards. 2. Skills and Competence I should have attained and maintain the technical standards, professional competence and exercise due care. 3. Assignment accounting and/ or audit work must be assigned to personnel who are highly proficient and have the required training. 4. Delegation - there has to be sufficient direction, supervision and review of work at all levels to ensure that standards are met. 5. Consultation - expert opinion, within or outside the firm can be obtained. 6. Acceptance and retention of clients - an evaluation of prospective clients and review of existing clients must be conducted. 7. Monitoring - of the adequacy and effectiveness of quality controls. QUALITY CONTROL POLICIES AND PROCEDURES My firms general quality control policies and procedures are to be communicated to its personnel in a manner that provides reasonable assurance that the policies and procedures are understood and implemented. On Individual Client Accounting/Audits should be conducted by implementing those quality control procedures of the firm, which apply to individual accounting/audits. Delegation, direction, supervision, review and exercising due care are essential attributes Direction to the assistants to whom work has been delegated is necessary. It involves informing them about their responsibilities and accounting/audit objectives. Accounting/Audit program is an important tool here.
Supervision includes the elements of direction as well as review. I am
responsible for the supervision and must monitor the progress of the accounting/audit, evaluate the competence of assistants; address significant accounting and auditing questions raised and resolve differences of professional judgment among the personnel. Review of the work performed by each assistant, at personnel of an equal level is necessary. The considerations while reviewing are: the compliance with the accounting or audit program, adequate documentation, resolving all significant matters, achievement of accounting or audit objectives and arriving at consistent conclusions. The audit plan and program, assessments of inherent and control risks, documentation of audit evidence have to be reviewed on a regular basis. The process of reviewing may involve requesting other personnel who were not involved in the audit to perform certain additional procedures. Selection of administrative and technical persons - appoint a responsible personnel for administration of quality control - appoint a responsible personnel for technical elements relating to quality control Determine level of authority of these persons and define reporting responsibility. - Persons should be of reasonably senior status with authority to implement necessary action. - Reporting should be to the management committee or equivalent level. Monitoring - The firm places a significant emphasis on independent monitoring of all elements of a practices system of quality control. To ensure adherence to and the effectiveness of the system of quality control our practice should, where possible, apply and develop the following principles: a. a personnel should be responsible for this supervisory review function; b. competent senior person(s) should be trained to carry out this function; c. person(s) currently involved in any of the elements of quality control should not participate in the monitoring function; d. the personnel in charge of this function should review all reports and personally discuss the reports with appropriate partner and personnel; e. non adherence to the policies and procedures relating to quality control will be reported to partner concern; f. non-compliance by any personnel should be regarded within the practice as failure to observe a proper standard of professional care, skill or competence and be dealt with appropriately.