Quality Assurance
Quality Assurance Manual
Implementing quality control in practice
Foreword
The accounting profession uses the term ’quality control’ to describe the measures taken by a practice to comply with professional and legal requirements, helping to deliver a first class service to clients. A quality control system goes a long way towards this, encompassing a firm’s organisational structure, policies and procedures.
The Global Financial Crisis (GFC) has had an impact which has been felt worldwide. The accounting profession is no exception to this economic downturn. A weak Australian dollar, economic uncertainty and volatile stock markets all mean that accounting practices worldwide face increased challenges in maintaining income levels. A well managed accounting practice will be best positioned to face challenges and take advantage of opportunities, and an effective quality control system is an essential component of good practice management.
Establishing a quality control system has many benefits:
Standards improve as potential problem areas are identified and resolved more easily
Risks are reduced through more effective controls
Staff morale improves by having an effective, well-run practice that offers guidance and training for staff to excel in their roles
Peace of mind is maintained through a reduced risk of litigation or professional indemnity claims. A robust quality control system also bolsters the position of a member in the event of a negligence claim
New clients are won and existing clients are retained, due to the enhanced reputation of a firm
Better client service is delivered, with a more reliable end-product and better value for money
Profitability improves as less time is spent correcting errors
Client expectations are realistic as these are agreed formally at the start of any project
Accountability can be demonstrated by a firm via the ATMA’s Quality Review Program and the work of other regulators.
This is why the ATMA supports APES 320 Quality Control for Firms, which makes it mandatory for every firm to adopt a quality control system.
This comprehensive manual can help you meet APES 320 requirements and can also be adapted to cover other key management issues in your firm. I encourage you to use this manual and reap the rewards that a quality control system can bring.
Quality Assurance Control Manual
Quality Assurance Evaluation Questionnaire
This general questionnaire is designed to help you to keep down the time and cost required for the quality assurance review, while allowing you and the reviewer to carry out a thorough review of your practice. We hope you will pick up some valuable ways to improve your systems as you work through the questionnaire. We expect it will take around an hour (not including the implementation of any changes you may decide on as a result of completing the questionnaire). Could you please note how long you actually take, at the end of the questionnaire?
It prompts you to identify what procedures, controls and practices you have in place to ensure you comply with APES 320 Quality Control for Firms. In preparing for the quality assurance review, please think about examples (including client files) that you can show to demonstrate that the controls are in place and are effective. If you achieve one or more of the principles in different ways for different types of engagement (eg tax, compilation) please be prepared to show examples of each.
Please note: The reviewer will run through this questionnaire with you during the quality assurance review. If you need guidance to answer the questionnaire, please call the reviewer before the review. The questionnaire is a tool for the review, not a stand-alone document. There is not much space for answers to such questions as
Your procedures are "what you do to ensure the principle is complied with" (you may call them something other than "procedures"; the point is that they are consistently applied and they work). The reviewer will need to see on the day of the review examples of any checklists and forms that you use. "describe your procedures for…" This is because you merely need to note briefly the part of you systems that are relevant to the question, and then show them to your reviewer during the review.