Monitoring Solutions
 

Contents:

Introduction
Relevance and adequacy of policies and procedures
Appropriateness of guidance materials and practice aids
Effectiveness of professional development programs
Compliance with firm policies and procedures

Peer Review Guide > Sample Recommendations for Strengthening Quality

Introduction:

The section shows some of your options for revising policies and procedures to strengthen areas of the firm's quality control related to monitoring. Other alternatives may also exist.

Monitoring policies or procedures comprise the on-going efforts of the firm to maintain quality engagements. These efforts include observation and evaluation of existing policies and procedures for the other four elements of quality control for the purpose of determining their continued adequacy and relevance. For example, if the nature of the firm or its practice has changed recently, then policies or procedures may need to be updated to reflect those changes.

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Relevance and Adequacy of Policies and Procedures:

  1. Perform annual inspections to evaluate the effectiveness of current policies and procedures.
  2. Ask firm members for feedback on improving policies and procedures.
  3. Assign individuals with appropriate experience to inspection of engagements.
  4. Communicate with other CPAs about their success with specific policies or procedures.

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Appropriateness of Guidance Materials and Practice Aids

  1. Compare your library contents to the needs of the types of engagements you perform.
  2. Assign someone the function of monitoring guidance material and practice aids.
  3. Maintain a summary of points noted during engagement review procedures the review

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Effectiveness of Professional Development Programs

  1. Request those attending CPE programs to summarize strengths and weaknesses of classes they attend.
  2. Preview course descriptions before registration.
  3. Request recommendation from other CPAs about courses they found beneficial.

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Compliance with Firm Policies and Procedures:

  1. Perform a pre- or post-issuance reviews of engagements.
  2. Summarize inspection findings and distribute to professional personnel.
  3. Schedule periodic firm meetings to discuss implementation issues related to firm policies.
  4. Look for ways to streamline procedures without sacrificing effectiveness.

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© 1998-2001, Duane Reyhl, CPA
 E-mail: dreyhl@reyhl.com

Updated: October 26, 2003