|
Services
|
Compliance with Policies and Procedures-regional firm
Policy Statement:
The CPA firm will consider and evaluate, on an
regular basis, compliance with its policies and procedures.
Implementation:
The CPA firm will carry out this policy by the carrying out of the firm's
annual inspection, which includes the following procedures:
- Making more effective and working
together on the CPA firm's inspection program to get feedback about the
effectiveness of the CPA firm's policies and procedures.
- Making more effective a plan for an
appropriate test of compliance with the CPA firm's policies and
procedures on sample of engagements.
- Reviewing circular forms on the
resolution of matters reported by professional personnel on independence
to determine that matters have been appropriately considered and
resolved.
- Interviewing employees at all levels to
get information about procedures and to determine whether employees are
knowledgeable of CPA firm policies and procedures.
- The CPA firm reviews documentation to
determine compliance the following:
- Personnel evaluations, including
documentation of hiring and advancement decisions
- Documentation of client acceptance and
continuance decisions
- Participants' evaluations of practice
office training programs
- Professional development records of
personnel
- Correspondence regarding the resolution
of independence matters within the practice office
- The CPA firm reviews a sample selected
engagement using the following criteria:
- All partners and managers who have
significant accounting and auditing responsibilities in the selected
offices
- First-year engagements
- Significant specialized industries with
emphasis given to high-risk industries
- Level of service performed (that is,
audit, review, compilation, and attestation)
- Level of attestation services (that is,
examination, review, and agreed-upon procedures)
- The CPA firm makes a summary of findings
from the inspection procedures.
- Submitting findings employees and making
the corrective actions on the engagements reviewed.
- The CPA firm will give a summary
inspection report to the firm's senior management that evaluates the
overall results of the inspection to determine whether:
- The firm as a whole needs to improve
compliance with the firm's policies and procedures.
- Revisions to the firm's quality control
policies and procedures are necessary.
- The CPA firm will emphasize the need for
improved compliance with or changes to the system of quality control in
training programs, office manager meetings, and firm policy
correspondence.
- The CPA firm will regularly review the
employee evaluation and counseling to assess that:
- Procedures for evaluation and
documentation are being followed on a timely basis.
- Requirements established for
advancement are being achieved.
- Personnel decisions are consistent with
evaluations.
- Recognition is given to outstanding
performance.
©/2003 to 2009 A Andrew Harrison CPA P.C. love a challenge
|
