7.1 Monitoring Policy Statement

7.1 Monitoring policy statement

Instructions
Your firm is required to document its policy on monitoring to comply with APES 320 and ASQC 1.
Note that APES 320ASQC 1 include more requirements for assurance practices, so additional policies are included here for assurance practices to adopt in addition to the general policies.
You may like to adapt this policy statement to your firm’s situation.

Monitoring

We are committed to the ongoing evaluation of our firm’s risk management framework and system of quality control. The responsibility for this is taken on by all the partners.

All engagements are reviewed by the engagement partner before the report/return etc. is issued to the client. This engagement review includes reviewing whether the firm’s policies and procedures have been adhered to. When issues are identified or errors are uncovered during engagement reviews, the system, policies and relevant procedures are reviewed and practical changes that should reduce the risk of future similar errors are made. Where relevant training programs will address issues uncovered during monitoring procedures.

Monthly, the individual assigned responsibility for quality control, our quality control leader, conducts an informal assessment of the practice. This is discussed with all team members at team meetings, and appropriate follow-up action implemented.

Annually, the firm’s systems including the risk management framework and quality control manual and all forms and procedures are reviewed by the quality control leader. This review includes a quality culture assessment, focusing on the firm’s commitment to quality. The quality control leader, in conjunction with all partners, is responsible for implementing enhancements of the system.

Every three/five years, an independent quality assurance review is conducted by a reviewer appointed by Chartered Accountants Australia and New Zealand. The firm is supportive of this process.

A review of an engagement file for each partner will be conducted at least once every three years.

Complaints and allegations

Complaints are taken seriously by the firm and are immediately referred to the engagement partner. Complaints are to be acknowledged with the client, and a prompt resolution sought. Clients must be kept informed as to the progress of the resolution.

Every formal complaint received is examined to determine if a weakness in the firm’s system(s) exists which is in need of improvement.

A record of client complaint form is completed to aid in satisfactorily resolving the matter.

PI insurers are notified, if necessary.

Assurance practices only
If our firm receives a complaint from an assurance client, that complaint is investigated by a partner not involved in the engagement. As we are a small firm this investigation will be referred to a consultant or another firm in instances where the complaint is designated ‘serious’. The managing partner has responsibility for designating complaints as ‘serious’.
Assurance practices that conduct audits under the Corporations Act need to implement policies and procedures to deal with whistleblower revelations from clients. For more information on how assurance practices can comply with their obligations, refer to the ASIC website.

Staff are free to raise concerns with the engagement partner or managing partner without fear of reprisal.

charteredaccountantsanz.com Toolkit for firms with staff (revised May2015)