Leadership Responsibility for Quality within the Firm

Transcription

1 Leadership Responsibility for Quality within the Firm

2 Leadership responsibility Under this element, the firm shall established policies and procedures designed to: Promote an internal culture recognizing that quality is essential in performing engagement Any person or persons assigned operational for the SQC has sufficient and appropriate experience and ability, and the necessary authority, to assume that responsibility.

3 Leadership responsibility The promotion of quality-oriented internal culture depends on clear, consistent and frequent actions and messages from all levels of the firm s management.

4 Leadership responsibility The quality promotion may be incorporated in form of (but are not limited to): Key business strategy focused on quality Providing appropriate resources to internal functions relating to risk & quality Allocation appropriate management so that commercial consideration do not override the quality of work performed. Establishing Quality Committee Having KPIs focused on quality of engagement Performance evaluation, promotion and compensation depending on quality KPIs

5 Leadership responsibility The action and message on quality may be communicated through Partner, manager and staff meetings Training and technical updates Communications to staff by leadership and key functions Staff outing activities

6 Leadership responsibility What areas should be documented? Clear policies and procedures design to 1) promoted such internal culture focused on quality, 2) assign person or group of persons responsible for SQC Identify the person(s) having ultimate responsibility for SQC (name, role, evidence that they have appropriate experience, authority and sufficient time) Organisation chart including job description the roles responsibility for quality Document how The Tone at Top is communicated to staff (type of communication, frequently, consistency of the message to be communicated, topics, communicated by and to whom and feedback)

7 Leadership responsibility What areas should be monitored? How management monitor the communications regarding quality Evaluation through interviews with staff if they feel the firm promotes and rewards high quality work Document how management monitor the allocation of management responsibilities Evaluation through discussions with senior staff if personnel within the firm believe that the resources devote to quality control procedures are sufficient.

8 Leadership responsibility In your table group 1. Spend the 15 minutes to discuss the case as per hand out 2. Noted you points in the flip chart 3. Identify spoke-person to share

9 Monitoring

10 Monitoring In this element, the firm shall establish policies and procedures in these areas: Monitoring process designed to ensure that policies and procedures relating to SQC are relevant, adequate, and operating effectively. Control deficiencies evaluate, communicate and remedial action Complaints and allegations

11 Monitoring process The monitoring process shall: Include an ongoing consideration and evaluation of SQC including, on a cyclical basis, inspection of at least one completed engagement for each partner. Require responsibility for the monitoring process to be assigned to a partner(s) or group with sufficient and appropriate experience and authority to assume that responsibility Require that those performing the engagement or the quality control review are not involved in the inspecting the engagements.

12 Monitoring process The purpose of monitoring compliance is to: Adherence to professional standards and requirements Whether the SQC has been appropriate designed and effectively implemented. Whether the quality policies and procedures have been appropriately applied.

13 Monitoring process The ongoing consideration and evaluation of SQC include the following: Analysis of 1) new development in professional standards and requirements, 2) written annual independence confirmation, 3) CPD, and 4) decision related to A&C Determination of corrective action to be taken Communication to appropriate firm personnel of weaknesses identified in the SQC Follow up so that necessary actions are promptly made to the SQC

14 Monitoring process Inspection process is process of review the quality at engagement level by the selection of individual engagement without prior notification to engagement partner and the team. An independent external inspection program does not act as a substitute for the internal monitoring program. In small firm with limited resources, they may choose to use a suitably qualified external person or share resource with other firms.

15 Control deficiencies The firm should evaluate the impact of deficiencies noted to determine whether they are either: Instance case Systemic, repetitive or significant deficiencies that require immediate corrective action The firm should communicate to relevant partners and other appropriate personnel about 1) deficiencies noted, and remedial action.

16 Control deficiencies Recommendation for appropriate remedial actions shall include one or more the following: Taking appropriate remedial actions in relation to an individual engagement, personnel or functional leaders The communication of findings to those responsible for training and professional development Change to the policies and procedures Disciplinary action against those who fail to comply with policies and procedures

17 Control deficiencies The firm shall communicate at least annually the results of the monitoring of its SQC to partners, other appropriate individual within the firm including CEO, managing board of partners. Information to be communicated shall include: A description of the monitoring procedures performed The conclusion drawn from the monitoring Where relevant, a description of systemic, repetitive or significant deficiencies and of the action taken

18 Complaints and allegations The firm shall establish policies and procedures that it deals appropriately with: Complaints and allegations that work performed by the firm fails to comply with professional standards and requirements Allegations of non-compliance with the SQC The firm shall establish clearly defined channels for staff to raise any concerns.

19 Monitoring In your table group 1. Spend the 20 minutes to discuss the case as per hand out 2. Noted you points in the flip chart 3. Identify spoke-person to share

20 Q&A