The Need for Action

All accounting firms performing assurance engagements (such as audits and reviews) are required to establish a monitoring process. Such a process includes two key elements as follows:

1. Ongoing consideration and evaluation of the Firm's system of quality control
This requires an annual inspection of the Firm's system of quality control and a yearly report prepared on the findings. The inspection may be performed by anyone who is a partner or another person with sufficient and appropriate experience and authority in the Firm to assume that responsibility.

2. Cyclical inspection of completed files
At least once every three years, an inspection of at least one completed engagement for each engagement partner is required. The report on findings would be incorporated into the annual monitoring report for that particular year. The inspection of completed files has to be completed by someone who was not involved in performing the engagement or the engagement quality control review.

FocusROI provides low cost monitoring services that address all of the quality control elements outlined above.

Annual Self-Assessment

To comply with the first element of monitoring (ongoing compliance with Firm policies) Firms have a choice. They can hire an external person or do the work themselves.

Although doing it yourself is likely cheaper, small firms may not have people who are suitably qualified or the necessary time required. FocusROI is offering an approach that combines the best of both options for a very affordable cost.

FocusROI is currently developing an on-line self-assessment tool. This will enable subscribing Firms to go online (at any time, day or night) and respond to a questionnaire (that will be kept entirely confidential) on quality control within their Firm. Some of the benefits of this approach are as follows:

1. Convenience and time saving;
2. Receive instant feedback on whether the Firm is in compliance with professional standards;
3. Receive recommendations for action required in areas where weaknesses were identified;
4. Production of the required annual monitoring report for the Firm;
5. Access to other relevant resources and FocusROI personnel for further assistance as required; and,
6. Lower costs incurred than any other option.

Completed File Inspections

FocusROI has professionals who have been partners and managers in large accounting firms and have extensive experience in reviewing engagement files. Some of the benefits of employing these professionals to inspect your files are as follows:

1. Our objective inspections will ensure compliance with the cyclical file inspection requirements
2. Prepares firm for the next practice inspection
3. Quickly identifies potential file deficiencies and firm training needs
4. Guidance available on key accounting and auditing issues
5. Assessment of engagement efficiency in relation to best practices
6. Report prepared on findings including recommendations for action
7. Confidentiality of information and results.

Related Services

In addition to the above we can help in the following areas:

1. Designing or updating your Firms quality assurance manual
2. Writing the annual communication to staff based on the results of monitoring
3. Identify improvements in engagement efficiency and office workflow
4. Training sessions (live and/or web based)
5. Personalized coaching sessions
6. Speech writing

Next Steps
Call Stephanie Ki at (416) 594-0005 extension 3 or email her at ski@focusROI.com for additional information and a fee quotation.