Quality Management Tools – Audit Assistant Support

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From December 2022 professional assurance firms will be required to comply with new quality management standards. To help firms meet these standards we have created a suite of dynamic workpapers, based on the 'Pro-forma toolkit: Audit Quality Management' for small and medium firms produced by CAANZ.

Some elements are already built into individual jobs (or will be updated as we roll out our new templates). We have added root cause analysis tools, deadlines, rollover and review capabilities, hyperlinks to the relevant standards and of course, the tools sit within the Audit Assistant application where they are easy to access by partners and staff.

The tools are designed for small to medium assurance firms, including sole practitioners.

Audit Quality Management Tool:

Under PES 3 assurance firms must have a Quality Management Manual. This is the primary part of the toolkit.

It is designed for annual rollover and update.
The date is set to the end of the current year (It makes sense to use the 30 June year to correspond with the annual CPD requirements as these are recorded for each staff member in this tool.)
Staff members should all be added to this job so that they can be familiar with the Quality Management Manual and update their own records where applicable.
All the parts may be customised to suit the firm, and customisation remains on rollover.

Document templates include:

Business Description and Philosophy
Risk Assessment Process Policy
Risk Assessment
Governance and Leadership Policy Statement
Relevant Ethical Requirements Policy Statement
Acceptance and Continuance of Client Relationships and Specific Engagements Policy
Engagement Performance Policy Statement
Resources Policy Statement
Information and Communication Policy Statement
Monitoring and Remediation Policy Statement

There are also workpapers as follows:

Assignment of Responsibilities
Annual Independence Confirmation (each staff member to complete, with independence resolution memorandums to complete if an issue is raised)
Training and development records (each staff member must update their own)
Client complaint records (a copy to be completed in each instance of a complaint made)
Using expert's work (a list of approved experts to consult if necessary) NOTE - this is also available in a stand-alone format if confidentiality is required
Technology acquisition forms (to ensure due diligence is completed and recorded)
New service provider forms (to ensure due diligence is completed and recorded)
Culture quality assessment checklist (for a recorded assessment of work culture during the year)
Annual system evaluation (a formal annual evaluation resulting in a written formal report)
Root cause analysis and remedial actions (a separate version is created when a fault is identified, and a root cause analysis interview record is created if a staff member's input or response is required, plus a remedial action plan is created for each issue) NOTE - this is also available in a stand-alone format if confidentiality is required

New Assurance Client Tool:

A tool for the screening and induction of new clients.

Enter the date as the date when the client was assessed
This is a one-off job used for initial induction.

Pages include:

New client screening questions
New client background information
New client acceptance checklist
New client independence confirmation (multiple versions may be created for all relevant staff to sign off their independence)
Welcome letter
Ethical clearance letter (to prior assurance practitioner).

Client Exit Tool:

A tool for processing departing clients.

The date is when the client is removed from the firm.

Pages include:

Lost client form (describing reasons for departure and creation of disengagement letter)
Checklist for updating records and ensuring all exit processes are followed.

Staff Recruitment, Orientation and Review Tool:

A tool to maintain records of staff recruitment, orientation and review process. There are versions for professional and administrative staff.

The date entered may be the date of the interview, later updated to the appointment date if appropriate
The client's name is the name of the interviewee/ staff member.

Pages include:

A proforma job description document
A candidate interview and evaluation checklist
A reference check workpaper (a new version is made for each reference)
A summary of the offer, and a place for the employment contract to be attached
New staff orientation checklist
Performance review workpaper (a new version created for each review).
Note: to retain confidentiality make sure the security setting 'Only see assigned jobs' is selected and the staff member should not be assigned to the file.

Client Complaint Process Tool:

For use in processing client complaints in terms of the Quality Management Manual if not to be included as part of the manual for confidentiality reasons.

Set name as the name of the client
Set the date at as date the complaint was received.

System Evaluation, Root Cause Analysis and Remediation Process Tool:

For use in carrying out annual and informal system evaluations, identifying the root cause of deficiencies and actions to be taken, including staff interviews in terms of the Quality Management Manual (if not to be included as part of the manual for confidentiality reasons).