Contents:

Introduction
Hiring
Engagement Assignment
Individual Skill and Training
Firm-Wide Knowledge
Other Knowledge-Related Matters
Advancement

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 personnel management. Other alternatives may also exist.

Personnel management policies or procedures center around the personal attributes that a professional brings to his or her assignments. These polices include practices related to four areas: 1) hiring, 2) assignment to engagements at a level commensurate with training, 3) participation in professional development activities and 4) advancement. Professional development can consist of formal continuing education or informal education such as reading, attendance at staff meetings, discussions with other practitioners or attendance at professional meetings.

Adequate professional development policies help your firm maintain adequate current knowledge with respect to the firm's practice areas. They also give your firm assurance that it complies with external licensing and regulatory requirements. Policies may be informal (i.e., not written, but generally understood) or formal (as written in a quality control document.) As a firm grows in size, so does the necessity for a written quality control document.

Hiring:

1. Identify the critical qualities of successful employees and communicate these to prospective employees.
2. Develop a list of open-ended questions that to use in employment interviews to assess how a prospective employee might approach a typical practice decision.
3. Check employment references.
4. Ask your present successful employees for referrals.

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Engagement Assignment

1. Match requirements of the assignment with the experience of the personnel.
2. Assign a mentor to help coach less experienced staff.
3. Increase the level of pre-engagement supervision.

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Individual Skill and Training

1. Develop policies that establish minimum levels of accounting and auditing CPE for those involved in the A&A function.
2. Assign an individual the responsibility of monitoring the level of A&A education.
3. Schedule certain courses for individuals responsible for specialized areas, such as governmental auditing.
4. Document the completion of self-study education.
5. Maintain records of informal education acquired.

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Firm-Wide Knowledge:

1. Develop policies that establish minimum levels of accounting and auditing CPE for those involved in the A&A function.
2. Assign an individual the responsibility of monitoring the level of A&A education.
3. Assign certain courses to individuals responsible for specialized areas such as governmental auditing.
4. Foster the philosophy of maintaining an adequate knowledge base for the firm as a whole.

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Other Knowledge-Related Matters:

1. Require the evaluation, by an individual other than the presenter, of in-house CPE presentations prior to presentation.
2. Develop a centralized method of tracking the CPE attended by firm professionals.
3. Assign responsibility of monitoring the level of A&A education.
4. Maintain awareness of current accounting and auditing issues by skimming or reading professional periodicals.
5. Distribute regular updates of recently released accounting and auditing pronouncements to members of the firm.

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Advancement:

1. Require engagement evaluations that highlight strengths as well as areas for improvement.
2. Communicate a culture of continuous improvement.
3. Ask personnel to perform self-evaluations.
4. Use upward evaluations to identify areas where the firm could improve general engagement supervision.

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