During the two interim years before your peer review, as required by Professional Standards, your firm will need to perform monitoring procedures to ensure your system of quality control properly designed and operating effectively.
We have extensive experience in the role of team captain to ensure your firm’s internal inspection is properly performed and timely sharing the results noted by performing the following procedures:
- Review your latest Quality Control Document – ensure it’s accurate, current and relevant to your Firm’s practice and size.
- Review of High-Risk Attest Engagements – select a sample of an audit, review, compilation and other attest engagement to review the report, financial statements and workpapers are in accordance to the appropriate standards.
- Partner and Professional CPA Licensing Testing – select a sample of partners and professionals and trace their license(s) to ensure they’re in good standing with their respective state board(s).
- New Hire Testing – select a sample of new hire and examine whether certain forms have been completed in accordance with Firm policy. In addition, to satisfy that individual’s training, background and experience is appropriate for the position filled.
- Independence Testing – select a sample of annual confirmations; particularly ones with noted exceptions
- Individual CPE Requirements Testing – select a sample of partners and professionals to ensure compliance with firm, AICPA and regulatory requirements regarding the number of hours and the quality of courses taken.
- CPE In-House Training Course Evaluation Testing – select a sample of in-house courses given during the peer review period to ensure it meets both the AICPA and NASBA requirements
- Examine Staff Plan – Assignment of Personnel to Engagements – obtain a general understanding of the experience and competency levels of each engagement partner and in-charge staff, to determine if there are any obvious improper personnel assignments indicated on the Staff Plan. In addition, consider if the in-charge auditors possess the knowledge, skills and abilities, as determined by the Firm, to allow them to fulfill their responsibilities related to their engagements. Lastly, to address any apparent overuse or underuse of personnel.
- Evaluations Testing – select a sample of professional staff, obtain personnel files and determine whether the files contain timely performance evaluations or other documentation required by the Firm’s advancement policies.
- Firm Library Testing – select a sample of key professional literature to examine.
- Firm State Licensing Testing – review status of all locations in which the Firm conducts its business to ensure it’s currently licensed in each respective state.
- Interview of Professional Staff – select a sample of professional staff to interview in order to ascertain whether they understand the Firm’s system of quality control.
- AICPA Audit Quality Centers and PCAOB Membership Requirements – verify whether all relevant membership requirements have been fulfilled.
To learn more about how our Internal Inspection and engagement post issuance review services can provide the expertise and professionalism your firm needs, contact us today.