System of Quality Control Practice Aid - sole practitioner firm
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System of Quality Control Practice Aid - sole practitioner firm

3 years ago · 1.5 MB Download

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Overview: Read this first!

This AICPA Audit and Accounting Practice Aid Establishing and Maintaining a System of Quality Control for a CPA Firm’s Accounting and Auditing Practice is intended to help practitioners better develop the policies and procedures that comprise a firm’s system of quality control, as required by QC section 10, A Firm’s System of Quality Control (AICPA, Professional Standards).

A firm’s system of quality control consists of policies designed to achieve the objectives of the system, and the procedures necessary to implement and monitor compliance with those policies. As with other internal controls (for example, an entity’s controls over financial reporting), they should be designed to provide reasonable assurance that the objectives will be achieved.

This practice aid includes illustrative policies and procedures for a sole practitioner with per-diem personnel, along with guidance on designing and maintaining a system of quality control. In addition, this practice aid includes an overview of QC section 10 as well as QC section 10.

This version of the practice aid prepared by the Quality Control Standards Task Force has been revised to

  • make the illustrative policies and procedures more easily customizable for practitioners using this practice aid, and

  • include tips, warnings and reminders to help practitioners better implement the policies and procedures.

How this practice aid will help you

Peer Review will assess the design of your system of quality control, and compliance with that system. If your firm’s system of QC has deficiencies, you may not be meeting professional standards. Whether or not you agree with the standards, you have an obligation to comply with them—or you will have to take remedial actions and be monitored by Peer Review. If your firm’s system of quality control is sufficiently deficient, you risk losing your license. Firms that struggle with engagement quality and have been referred to the AICPA Professional Ethics Division or disciplined by regulators have been shown to have substandard systems of quality control. This document is intended to help you design a system of quality control that meets the requirements of the quality control standards and is tailored to the facts and circumstances of your practice. It also contains helpful guidance on implementing the policies and procedures that compose your system.

How to use this practice aid

AICPA encourages you to use this practice in developing and documenting your system of quality control and, as such, we grant you permission to copy and incorporate portions of the work as necessary. This permission is for internal use only, except for educational purposes. The materials or any portion thereof may not be incorporated into a for-sale work or otherwise distributed without separate written permission from the AICPA.

Make this document your own by tailoring the illustrative policies and procedures as necessary for the facts and circumstances of your practice. Not all of these policies and procedures may be applicable to your firm; for example, you may not use per-diem personnel. Likewise, you may wish
to add policies and procedures that your firm has implemented as part of its QC system. Note that the notation “paragraph .XX of QC section 10” refers to the requirement paragraph relevant to that policy. Some of the policies and procedures presented in this practice aid are not specified in QC section 10; however, they represent the views of the task force regarding best practice for meeting the requirements for a quality control system.

In addition to the illustrative policies and procedures, this practice aid includes tips, warnings, and notes to help your firm implement and monitor the policies and procedures. These include references to resources offered by the AICPA at no charge to assist practitioners in enhancing engagement quality and improving efficiency. The task force developed these tips, warnings, and notes based on years of experience as peer reviewers and partners responsible for their firms’ system of quality control. They provide insightful and practical advice.

Download the Practice Aid Establishing and Maintaining a System of Quality Control for a CPA Firm’s Accounting and Auditing Practice - Sole Practitioner Firm

File name: practice-aid-sole-practitioner.pdf

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