PPC's Guide to Quality Control: Compilation and Review

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Get a streamlined approach for firms that provide only compilation and review services to establish and maintain a quality control system and pass peer review with PPC's Guide to Quality Control - Compilation and Review.
The Guide is designed to assist compilation and review firms in developing, implementing, and maintaining a system of quality control that incorporates the requirements of SQCS 8 and satisfies AICPA peer review requirements in the most efficient way possible.
The Guide includes:  

• Step-by-step instructions, checklists, and practice aids for use in designing, implementing, documenting, and monitoring the firm's Quality Control (QC) system
• Guidance on the essentials for developing and implementing policies and procedures for each of the six QC elements - firm leadership, relevant ethical requirements, acceptance and continuance, human resources, engagement performance, and monitoring
• Model QC documents for different firm types, covering small firms with multiple partners and staff, as well as sole practitioner firms with and without professional staff
• A peer review chapter that provides the information you need to navigate the peer review process and pass peer review with ease

Whether you're a sole practitioner or in a firm with several partners, if you perform only compilation and review services, this Guide is specifically developed for you.

List of Content (Click any title to expand the list)

• INTRODUCTORY MATERIAL
  • PREFACE
  • PEER REVIEW OF THIS GUIDE
  • HOW TO USE THE GUIDE
  • ABOUT THE AUTHORS. . .
  • ACKNOWLEDGMENT OF COPYRIGHTS
  • ACKNOWLEDGMENT OF TRADEMARKS
  • ACKNOWLEDGMENTS
  • LIST OF SUBSTANTIVE CHANGES AND ADDITIONS

• CHAPTER 1: QUALITY CONTROL--AN OVERVIEW
  • 100 INTRODUCTION
    • What Is Quality Control?
      • What Is an Accounting and Auditing Practice?
      • What Is a Compilation and Review Practice?
    • What Is the Purpose of a Quality Control System?
    • System Review vs. Engagement Review
    • Chapter Overview
      • Use of the Term Partner.
  • 101 QUALITY CONTROL STANDARDS
    • SQCS No. 8
    • The ASB's Clarity Project
      • Effective Date.
      • Form and Structure of the Clarified Standards.
  • 102 SQCS NO. 8 REQUIREMENTS
    • Professional Requirements of SQCS No. 8
    • Definition of Terms in SQCS No. 8
    • Elements of a Quality Control System
    • Documentation and Communication of the Firm's QC Policies and Procedures
      • Relationship of SSARS to Quality Control Standards.
    • Documentation Requirements of SQCS No. 8
  • 103 COMMITMENT TO QUALITY
    • Effective Leadership
    • Firm Culture
    • Dedication of Time and Resources
    • Benefits to the Firm of Establishing and Maintaining an Effective QC System
      • Improved Quality of Work.
      • Increased Efficiency in Delivering Services.
  • 104 DEVELOPING AND IMPLEMENTING AN EFFECTIVE QC SYSTEM
    • Setting a Realistic Timetable for Implementation
    • Reviewing Relevant Professional Literature
    • Assessing the Current QC System and Establishing a Plan
    • Reviewing the Plan and Timetable with Partners
    • Developing the QC Policies and Procedures
    • Communicating the QC Policies and Procedures to all Professionals
    • Monitoring Implementation of the QC System and Providing Additional Training
    • Performing Monitoring Procedures on the System and Making Modifications
      • Obtaining External QC Consulting Assistance.
  • 105 DRAFTING QC POLICIES AND PROCEDURES
    • Creating a Comprehensive Quality Control Document
    • Referring to Personnel and Accounting Manuals
      • Quality Control Materials.
      • A Caution about the Use of Abbreviated QC Documents.
    • Considering the AICPA Quality Control Practice Aid
      • Alternative Practice Structures.
    • Model Quality Control Documents
    • Quality Control System Assessment Practice Aids
  • 106 MAINTAINING THE FIRM'S QC SYSTEM
    • QC Maintenance Calendar Drafting Form
  • 107 PRACTICE MONITORING AND PEER REVIEW
    • General
      • Firm with No Accounting and Auditing Practice.
      • AICPA Peer Review Program.
  • 108 ORGANIZATION OF THIS GUIDE
  • APPENDIX 1A: Definition of Terms in SQCS No. 8

• CHAPTER 2: LEADERSHIP RESPONSIBILITIES FOR QUALITY WITHIN THE FIRM
  • 200 OVERVIEW OF THE QC ELEMENT
    • Summary of the Chapter
  • 201 INTERNAL FIRM CULTURE AND TONE AT THE TOP
    • Firm Management Is Responsible for the Firm's System of Quality Control
    • Setting the Tone at the Top
    • Determining the Appropriate Firm Management Philosophy and Operating Style
    • A Commitment to Quality Begins with Creating an Ethical Firm Culture
      • Managing by Example.
      • Create a Positive Workplace Environment.
      • Hire and Promote Ethical Employees.
      • Provide Ethics Training.
      • Deal with Noncompliance.
  • 202 ASSIGNMENT OF MANAGEMENT RESPONSIBILITIES
    • A Commitment to Quality Is Fundamental to the Firm's Business Strategy
  • 203 EVALUATION, COMPENSATION, AND ADVANCEMENT
  • 204 DEVOTION OF ADEQUATE RESOURCES
    • Designation of a Partner to Oversee Quality Control
      • Sufficient Authority.
      • Adequate Time and Assistance.
      • Characteristics of the Partner Who Oversees Quality Control.
  • 205 DRAFTING THE FIRM'S QUALITY CONTROL POLICIES AND PROCEDURES
    • AICPA Practice Aid
    • Developing Leadership Policies and Procedures
    • Illustration of Leadership Responsibilities for Quality Within the Firm Policies and Procedures
  • 206 EVALUATING THE OVERALL ADEQUACY OF THE QUALITY CONTROL SYSTEM'S DESIGN
  • 207 MONITORING COMPLIANCE WITH THE FIRM'S LEADERSHIP RESPONSIBILITIES FOR QUALITY WITHIN THE FIRM POLICIES AND PROCEDURES

• CHAPTER 3: RELEVANT ETHICAL REQUIREMENTS
  • 300 OVERVIEW OF THE QC ELEMENT
    • SQCS No. 8
    • Summary of This Chapter
  • 301 RELEVANT ETHICAL REQUIREMENTS
    • Overall SQCS Requirement
    • What Comprises Relevant Ethical Requirements?
    • Responsibilities
    • The Public Interest
    • Integrity
    • Objectivity and Independence
      • When Is Independence Required?
    • Due Care
    • Scope and Nature of Services
    • Guide for Complying with Nonindependence-related Ethics Rules
  • 302 INDEPENDENCE REQUIREMENTS
    • General Independence Requirements under the AICPA Code of Professional Conduct
      • Rule 101.
      • Interpretation 101-1 of Rule 101.
      • Networks and Network Firms.
      • Recent, Proposed, and Final Changes to Independence Requirements.
      • Interpretation 101-18.
      • Interpretation 101-19.
      • Definitions, Revisions, and Deletions.
      • ET 101-3.
    • The Conceptual Framework for AICPA Independence Standards
    • Effect on Independence of Performing Nonattest Services for an Attest Client
      • CPAs May Not Perform Client Management Functions or Decisions.
      • Management Responsibilities.
      • Establish a Written Understanding with the Client.
      • General Activities That Impair Independence.
      • Tax Compliance Services.
      • Appraisal, Valuation, or Actuarial Services.
      • Forensic Accounting Services.
      • Internal Audit Assistance Services.
      • Review Nonattest Services Performed for the Client for Possible Independence Problems.
    • Unpaid Fees and Independence
    • Additional AICPA Guidance
    • Other Independence Requirements
      • Rules of State Boards of Accountancy and State Societies of CPAs.
      • Other Regulatory Independence Rules.
      • Use of Other Accountants in a SSARS Review.
  • 303 MAINTAINING INDEPENDENCE
    • Initial Thoughts
      • Choosing Not to Be Independent.
      • Minor Independence Violations.
    • SQCS No. 8 Requirements
      • General Requirements.
      • Independence Representations.
      • Independence Breaches.
      • Rotation of Personnel.
    • Engagement Partner Consideration of Independence
    • Designating a Partner to Be Responsible for Compliance with Independence Requirements
      • Maintaining a Current Client List.
      • Informing Employees of Independence Requirements.
      • Obtaining Written Representations of Independence.
      • Identifying Independence Threats.
      • Accumulating and Communicating Information about Identified Threats.
      • Evaluating Threats to Independence.
      • Taking Appropriate Action When Independence Breaches Are Identified.
    • Determining How the QC System Failed
  • 304 DRAFTING THE FIRM'S QUALITY CONTROL POLICIES AND PROCEDURES
    • AICPA Practice Aid
    • Developing Relevant Ethical Requirements Policies and Procedures
      • Does the Policy Concerning Independence Apply to All Services and All Employees of the Firm?
    • The Firm's Quality Control Procedures
      • Should the Firm Design a Separate Personnel Manual?
      • Communicate the Firm's Policies and Procedures to Employees.
    • Illustration of Relevant Ethical Requirements Policies and Procedures
  • 305 EVALUATING THE OVERALL ADEQUACY OF THE QUALITY CONTROL SYSTEM'S DESIGN
  • 306 MONITORING COMPLIANCE WITH THE FIRM'S POLICIES AND PROCEDURES
  • APPENDIX 3A: Loan Independence Flowchart

• CHAPTER 4: ACCEPTANCE AND CONTINUANCE OF CLIENT RELATIONSHIPS AND SPECIFIC ENGAGEMENTS
  • 400 OVERVIEW OF THE QC ELEMENT
    • SQCS No. 8
    • Summary of the Chapter
  • 401 EVALUATING FIRM COMPETENCE AND CAPABILITIES
    • Industry or Subject Matter Knowledge
      • Special Considerations--Ethics Requirements When Using Third-party Service Providers.
    • Regulatory or Reporting Requirements
    • Meeting Reporting Deadlines
  • 402 COMPLIANCE WITH LEGAL AND RELEVANT ETHICAL REQUIREMENTS
    • Legal and Regulatory Requirements
    • Relevant Ethical Requirements
      • Conflicts of Interest.
  • 403 EVALUATING THE INTEGRITY OF THE CLIENT
    • Factors to Consider When Evaluating Integrity
      • Identity and Business Reputation of the Client.
      • Nature of Operations and Specific Business Practices.
      • Attitude toward Aggressive Accounting and Internal Control Matters.
      • Inappropriate Client Limitation Regarding the Scope of Work.
      • Reasons for Nonreappointment of the Previous Firm.
      • Length of the Relationship with the Client.
    • Gathering Evidence of Integrity
      • Interaction with CPAs and Other Professionals.
      • Reputation in the Community.
      • Profile as a Corporate Citizen.
      • Fiscal Responsibility.
      • Formal Company Communications.
      • Openness of the Client.
      • Dealings with Employees.
    • Special Considerations--Attestation Engagements
    • Special Considerations--Compilation and Review Engagements
  • 404 OTHER CONSIDERATIONS
    • Timing and Scope of Clients and Engagements Subject to SQCS No. 8
      • Evaluating the Acceptability of Existing Client Relationships.
      • Evaluating the Client List.
      • Evaluating the Client during the Planning Stage of Each Engagement.
      • Which Approach Do the Authors Prefer?
      • Responsibility for Approval.
      • Documentation of Client and Engagement Evaluation.
    • Evaluating Risk of Violating Ethical Requirements
    • Evaluating Practice Area Risk
      • Will the Engagement Consume a Disproportionate Amount of Firm Resources?
      • Will the Engagement Constitute a Marginal Level of Practice?
      • Evaluating Higher Risk Practice Areas.
    • Evaluating Industry Risk
    • Evaluating Engagement Risk
    • Evaluating the Financial Reporting System and Financial Statements
    • Determining If Scope Limitations Exist
  • 405 OBTAINING AN UNDERSTANDING WITH THE CLIENT
    • Engagement Letters
  • 406 WITHDRAWAL CONSIDERATIONS
    • Significant Issues Discovered after the Engagement Begins
    • Withdrawing from an Engagement or Ending a Client Relationship
      • Determining When to Withdraw from an Existing Engagement.
      • Responsibility for Approving the Decision to Withdraw.
      • Documenting a Withdrawal.
      • Communicating the Decision to Withdraw or Discontinue Services.
      • Special Considerations--Attestation Engagements.
      • Special Considerations--Compilation and Review Engagements.
  • 407 DRAFTING THE FIRM'S QUALITY CONTROL POLICIES AND PROCEDURES
    • AICPA Practice Aid
    • Developing Acceptance and Continuance Policies and Procedures
    • The Firm's Quality Control Procedures
      • Adopt a Standardized Checklist for Accepting a New Client.
    • Illustration of Acceptance and Continuance Policies and Procedures
  • 408 EVALUATING THE OVERALL ADEQUACY OF THE QUALITY CONTROL SYSTEM'S DESIGN
  • 409 MONITORING COMPLIANCE WITH THE FIRM'S ACCEPTANCE AND CONTINUANCE POLICIES AND PROCEDURES

• CHAPTER 5: HUMAN RESOURCES
  • 500 OVERVIEW OF THE QC ELEMENT
    • The QC Standard
    • Definitions
      • Personnel.
      • Partner.
      • Engagement Partner.
      • Staff.
      • Suitably Qualified External Person.
    • Summary of the Chapter
  • 501 RECRUITMENT AND HIRING
    • Plan for the Firm's Personnel Needs
      • Documenting the Recruitment and Hiring Plan.
      • Communicating the Plan to Those Responsible for Recruitment and Hiring.
    • Determining Attributes of New Employees
      • Documenting the Attributes Sought.
    • Developing a Recruitment Plan
      • On-campus Recruiting.
      • Referrals.
      • Periodical Advertising.
      • Use of Websites.
      • Use of Employment Agencies and Search Firms.
      • Recruitment Is a Two-way Process.
      • Documenting the Recruitment Plan.
    • Evaluating the Candidates
    • Explaining Firm Policies and Procedures to Job Candidates and New Employees
  • 502 DETERMINING COMPETENCIES AND CAPABILITIES
    • Introduction
    • Application Guidance
      • Professional Education.
      • Continuing Professional Development.
      • Work Experience.
      • Mentoring Relationships.
      • Independence Education.
    • Assessing Competency
    • Competencies of the Engagement Partner
      • Interrelationship of Competencies and Other Quality Control Elements.
      • Relationship of the Human Resource Quality Control Element with the UAA.
  • 503 ASSIGNMENT OF ENGAGEMENT TEAMS
    • SQCS Requirements
    • Other Requirements
      • Compilation, Review, and Attestation Requirements.
      • Ethical Requirements.
    • Evaluating Client Staffing Requirements and Formulating a Staffing Plan
      • Considerations in Assigning Engagement Partners.
      • Considerations in Assigning Engagement Teams.
      • Formal Time Budgets.
      • Modify Staffing Assignments Based on Consideration of Competencies.
      • Formulate a Staffing Plan.
      • Documenting the Staffing Plan.
      • Approving the Staffing Plan.
    • Modifying the Staffing Plan for Unforeseen Events
    • Communicating Staff Assignments
  • 504 PROFESSIONAL DEVELOPMENT
    • AICPA Bylaw Requirements
    • AICPA Policies for the CPE Membership Requirement
    • Statement on Standards for Continuing Professional Education (CPE) Programs
      • Types of CPE Programs.
    • State Boards of Accountancy and State CPA Societies
      • State Acceptance of Self-study CPE Credits.
    • Planning the Firm's Professional Development Activities
      • Create a Professional Development Plan for Each Professional in the Firm.
      • Document the Professional Development Plan.
      • Select and Develop Professional Development Activities That Meet CPE Requirements.
      • Maintain Appropriate CPE Records.
      • Provide Information on Changing Professional Standards in a Timely Manner.
      • Provide On-the-job Training.
  • 505 PERFORMANCE EVALUATION, COMPENSATION, AND ADVANCEMENT
    • SQCS Requirements
    • Making Personnel Aware of Performance Expectations
    • Providing Performance Evaluation and Counseling
      • Selecting a Staff Evaluation Form.
      • Evaluating Administrative Staff.
      • Determining the Frequency of Evaluations.
      • Interim Recognition of Performance.
      • Evaluating Partner Performance.
      • Progress and Career Development.
    • Helping Personnel Understand How Quality and Ethics Affect Compensation and Advancement
      • Establish Personnel Classification Levels That Describe Responsibilities and Qualifications for Advancement.
      • Documenting Personnel Classifications and Responsibilities.
      • Communicating Compensation and Advancement Criteria, Policies, and Procedures to the Staff.
      • Making Compensation and Advancement Decisions.
      • Documenting Compensation and Advancement Decisions.
  • 506 DRAFTING THE FIRM'S QC POLICIES AND PROCEDURES
    • AICPA Practice Aid
    • Developing Human Resources Policies and Procedures
    • Initial Considerations Relating to Developing Policies and Procedures for Recruitment and Hiring
    • Initial Considerations Relating to Developing Policies and Procedures for Professional Development
      • Professional Development Policies and Procedures May Cover All Professionals.
    • Initial Considerations Relating to Developing Policies and Procedures for Performance Evaluation, Compensation, and Advancement
      • At Some Stage in a Firm's Growth, a Personnel Manual Is Generally Developed.
    • Illustration of Human Resources Policies and Procedures
  • 507 EVALUATING THE OVERALL ADEQUACY OF THE QC SYSTEM'S DESIGN
  • 508 MONITORING COMPLIANCE WITH THE FIRM'S HUMAN RESOURCES POLICIES AND PROCEDURES

• CHAPTER 6: ENGAGEMENT PERFORMANCE
  • 600 OVERVIEW OF THE QC ELEMENT
    • SQCS No. 8 Requirements
    • Summary of This Chapter
  • 601 ENGAGEMENT PERFORMANCE, SUPERVISION, AND REVIEW REQUIREMENTS
    • SQCS Requirements
    • Ethical Requirements
    • Compilation and Review Requirements
      • Compilation Performance Requirements.
      • Compilation Documentation Requirements.
      • Review Performance Requirements.
      • Review Documentation Requirements.
    • SSARS No. 20
      • New SSARS Interpretations.
    • Attestation Requirements
      • Attestation Documentation Requirements.
      • Specific Types of Attestation Engagements.
    • Other Considerations
      • Cover All Types of Accounting Engagements.
      • Consider Procedures Found in Other QC Elements.
      • Interface the System with the Firm's Accounting Manuals.
      • Consider Firm Size.
      • Summary.
  • 602 CONSULTATION AND DIFFERENCES OF OPINION
    • Consultation
      • Outside Consultation.
      • Maintaining an Adequate and Up-to-date Professional Reference Library.
      • Attestation Requirements for Using Specialists.
      • Specifying Situations That Require Consultation.
    • Differences of Opinion
      • Documenting Differences of Opinion.
  • 603 ENGAGEMENT QUALITY CONTROL REVIEW
    • General Requirements
    • Performing Engagement Quality Control Reviews
    • Establishing Criteria for Engagement Quality Control Reviews
      • EQCR Issues.
      • Example of Establishing EQCR Performance Criteria.
    • Establishing Qualifications for Appointment and Replacement of Engagement Quality Control Reviewers
      • Technical Qualifications.
      • Objectivity.
      • Replacement of Reviewers.
      • Contracting Engagement Quality Control Review.
    • Documenting Engagement Quality Control Review
  • 604 MAINTAINING ENGAGEMENT DOCUMENTATION
    • Assembly of Engagement Documentation
      • SSARS and SSAE Requirements.
    • Retention of Engagement Documentation
    • Ownership of Engagement Documentation
    • Confidentiality, Custody, Integrity, Accessibility, and Retrievability of Engagement Documentation
      • Confidentiality.
      • Custody, Integrity, Accessibility, and Retrievability.
      • Electronic Engagement Documentation.
  • 605 DRAFTING THE FIRM'S QUALITY CONTROL POLICIES AND PROCEDURES
    • AICPA Practice Aid
    • Developing Engagement Performance Policies and Procedures
    • Developing Engagement Level Quality Control Steps
      • Presenting the Detailed Procedures in the Body of the QC Document.
      • Referencing to Engagement Procedures Located in the Firm's Accounting Manuals.
      • Building a Bridging Document.
      • Interfacing the Bridging Document with the Firm's Accounting Manuals.
      • Documenting the Quality Control Steps in the Bridging Document.
    • Assigning Responsibilities for Completion of the Engagement Level QC Steps
    • Indicating the Applicability of Steps to Each Type of Engagement
      • How to Tailor the Bridging Document.
    • Describing the QCM Used by the Firm
      • Incorporate the Applicable QC Engagement Performance Steps into the Engagement Work Program.
      • Unique Engagement Performance Issues for Compilation Engagements.
    • Developing Policies and Procedures for Maintaining Engagement Documentation
      • Document Retention.
      • Confidentiality, Custody, Integrity, Accessibility, and Retrievability of Engagement Documentation.
    • Developing Policies and Procedures for Consultation and Resolving Differences of Opinion
      • Consultation Considerations.
      • Establishing Steps to Perform a Consultation.
      • Assigning Responsibility for Resolving Differences of Opinion.
    • Developing Engagement Quality Control Review Policies and Procedures
      • Addressing Nature, Timing, Extent, and Documentation of EQCR.
      • Establishing the Eligibility of Engagement Quality Control Reviewers.
    • Illustration of Engagement Performance Policies and Procedures
  • 606 EVALUATE THE OVERALL ADEQUACY OF THE QUALITY CONTROL SYSTEM'S DESIGN
  • 607 MONITORING COMPLIANCE WITH THE FIRM'S ENGAGEMENT PERFORMANCE POLICIES AND PROCEDURES

• CHAPTER 7: MONITORING
  • 700 OVERVIEW OF THE QC ELEMENT
    • SQCS No. 8
    • Summary of This Chapter
  • 701 TYPES OF MONITORING ACTIVITIES
    • Engagement Quality Control Review
    • Postissuance Review
    • Inspection
      • Firm Size.
      • Results of Past Monitoring.
      • Degree of Authority Firm Has over Inspections.
      • Nature and Complexity of the Practice.
      • Client and Engagement Risks.
      • Relationship of Peer Review to Performing Inspection Procedures.
  • 702 PERFORMING MONITORING PROCEDURES
    • SQCS No. 8 Requirements
    • Accomplishing Ongoing Monitoring
      • Observing the System.
      • Evaluating the System for Compliance.
      • Making Necessary Changes.
    • Assigning Responsibility for the Firm's Monitoring Process
    • Selecting a Monitoring Team
      • Technical Requirements.
      • Independence and Small Firm Monitoring.
      • Team Size.
      • Establishing Ongoing Monitoring Procedures.
    • Performing Engagement Monitoring Procedures
      • Reviewing Engagement Documentation.
      • Evaluating Independence.
      • Evaluating Acceptance and Continuance Decisions.
      • Determining the Timing of Procedures.
      • Determining the Scope of Engagements Selected for Monitoring.
    • Performing Administrative and Other Monitoring Procedures
      • Assessing How New Developments Are Integrated into the QC System.
      • Reviewing Written Confirmation of Compliance with Policies and Procedures on Independence.
      • Determining the Effectiveness of Continuing Professional Development.
      • Evaluating Whether Firm Personnel Understand QC Policies and Procedures.
      • Determining the Appropriateness of Firm Materials.
  • 703 EVALUATING AND COMMUNICATING THE RESULTS OF MONITORING
    • Evaluating Deficiencies and Developing Recommendations
      • Taking Appropriate Remedial Action Regarding an Engagement or Personnel.
      • Communicating Findings to Professional Development Personnel.
      • Revising QC Policies and Procedures.
      • Initiating Disciplinary Action for Failure to Comply.
      • Implementing and Monitoring Corrective Actions.
      • Determining Action If an Inappropriate Report Is Identified.
    • Annual Communication of Monitoring Results
  • 704 MONITORING DOCUMENTATION
    • Form of Documentation
      • Identification of Clients in Monitoring Documentation.
    • Retention of Monitoring Documentation
    • PPC's Approach to Documenting Monitoring
      • PPC's Engagement Review Checklists.
    • QC System Documentation
  • 705 COMPLAINTS AND ALLEGATIONS
    • Origins of Complaints and Allegations
    • Types of Complaints and Allegations
      • Work Performed Failed to Comply with Standards or Requirements.
      • Noncompliance with the QC System.
      • Deficiencies or Noncompliance Identified during Investigations.
    • Establishing Channels of Communication for Complaints and Allegations
    • Investigating Complaints and Allegations
      • Communicating with the Complainant.
    • Documenting Complaints and Allegations
  • 706 DRAFTING THE FIRM'S QC POLICIES AND PROCEDURES
    • AICPA Practice Aid
    • Developing Monitoring Policies and Procedures
    • Initial Considerations Relating to Developing Monitoring Policies and Procedures
      • Considerations Relating to Developing Engagement Monitoring Procedures.
    • Illustration of Monitoring Policies and Procedures
  • 707 EVALUATING THE OVERALL ADEQUACY OF THE QUALITY CONTROL SYSTEM'S DESIGN

• CHAPTER 8: THE PEER REVIEW PROCESS AND UNDERGOING ENGAGEMENT REVIEW
  • 800 INTRODUCTION
  • 801 THE AICPA PEER REVIEW PROGRAM
    • Objectives and Requirements
    • Accounting and Auditing Practice
      • Services Covered.
      • Are SSARS Compilations of Management-use-only Financial Statements Subject to Peer Review?
      • Are Internal-use Forecast and Projection Engagements Subject to Peer Review?
    • Types of Reviews
    • Timing of Reviews
    • Administering Entities
    • Cost of Engagement Reviews
    • AICPA Peer Review Division Contact Information
  • 802 UNDERGOING AN ENGAGEMENT REVIEW
    • Objectives of Engagement Reviews
    • Planning Considerations
      • Designate a Member of the Firm to Coordinate the Review.
      • Administering Entity.
      • Does Compliance with the State's Practice-monitoring Program Constitute an Engagement Review?
      • Complete a Request for Scheduling.
      • Choosing a Peer Reviewer.
      • Firm-on-firm.
      • Committee-appointed Review Team (CART).
      • Select a Date for the Review.
      • Extensions.
      • Establish the Year End of the Period to Be Reviewed.
      • Sign an Engagement Letter.
      • Submit Background Information about the Firm to the Reviewer.
      • Excluding Engagement Areas from Scope of Peer Review.
      • Client Confidentiality.
      • Read the Peer Review Program Manual.
      • Importance of the Commencement Date.
    • Firm and Individual License Considerations
    • Firm No Longer Eligible for Engagement Review
  • 803 WHAT TO EXPECT DURING THE ACTUAL ENGAGEMENT REVIEW
    • Selection of Engagements for Review
      • Submitting Financial Statements and Related Reports and Documentation to Reviewers.
      • Submitting Firm Representations.
      • Disposition of Reports and Financial Statements.
    • Procedures Performed by the Reviewer
      • Performing Review Procedures.
    • Evaluation of Review Findings
      • Determining the Relative Importance of Matters.
      • Preparing MFC, DMFC, and FFC Forms.
      • Forming Conclusions on the Type of Report to Issue.
  • 804 POST REVIEW ACTIVITIES IN AN ENGAGEMENT REVIEW
    • Preparation of a Written Report on the Results of the Review
      • Contents of Engagement Review Reports.
      • Scope Limitations.
      • Peer Review Report Rating of Pass.
      • Peer Review Report Rating of Pass with Deficiencies.
      • Peer Review Rating of Fail.
      • Consequences of a Peer Review Report Rating of Pass with Deficiencies or Fail.
    • Firm Responses in an Engagement Review
    • Repeat Deficiencies, Significant Deficiencies, or Findings
  • 805 ACCEPTANCE OF THE ENGAGEMENT REVIEW
  • 806 RESOLVING DISAGREEMENTS
    • Termination from the Program
  • 807 PEER REVIEW DOCUMENTATION AND RETENTION
    • Peer Review Documentation
    • Firm's Retention Responsibilities
    • Reviewer's Retention Responsibilities
  • APPENDIX 8A: Illustrative Engagement Review Reports
    • APPENDIX 8A-1: Illustrative Engagement Review Report with a Rating of Pass
    • APPENDIX 8A-2: Illustrative Engagement Review Report with a Rating of Pass with Deficiencies
    • APPENDIX 8A-3: Illustrative Engagement Review Report with a Rating of Fail
  • APPENDIX 8B: Illustrative Letter of Response on an Engagement Review Report with a Rating of Fail
  • APPENDIX 8C: MFC and FFC Forms
    • APPENDIX 8C-1: Matter for Further Consideration (MFC) for Engagement Reviews
    • APPENDIX 8C-2: Finding for Further Consideration (FFC) for Engagement Reviews

• PRACTICE AIDS (GCR-PA)
  • GCR-PA-1: Designing and Developing the QC System
    • GCR-PA-1.1: Checklist for the Development and Implementation of a Quality Control System for Firms with Two or More Professionals
    • GCR-PA-1.2: Checklist for the Development and Implementation of a Quality Control System for Sole Practitioners with No Professional Staff
    • GCR-PA-1.3: Quality Control Maintenance Calendar
    • GCR-PA-1.4: Quality Control Documentation Checklist
  • GCR-PA-2: Leadership
    • GCR-PA-2.1: Leadership Responsibilities for Quality Within the Firm Policy and Procedures Drafting Form
  • GCR-PA-3: Relevant Ethical Requirements
    • GCR-PA-3.1: Relevant Ethical Requirements Policy and Procedures Drafting Form
    • GCR-PA-3.2: Independence, Integrity, and Objectivity Questionnaire
    • GCR-PA-3.3: Independence, Integrity, and Objectivity Representation
    • GCR-PA-3.4: Independence, Integrity, and Objectivity Resolution Form
    • GCR-PA-3.5: ET Interpretation 101-3 Documentation Form
  • GCR-PA-4: Acceptance and Continuance
    • GCR-PA-4.1: Acceptance and Continuance of Client Relationships and Specific Engagements Policy and Procedures Drafting Form
  • GCR-PA-5: Human Resources--Overall
    • GCR-PA-5.1: Human Resources Policies and Procedures Drafting Form
  • GCR-PA-6: Human Resources--Recruitment and Hiring
    • GCR-PA-6.1: Interview and Evaluation Checklist
    • GCR-PA-6.2: Employment Application
    • GCR-PA-6.3: Employee Confidentiality Agreement Drafting Form
  • GCR-PA-7: Human Resources--Competencies and Capabilities
    • GCR-PA-7.1: Engagement Team Competencies and Capabilities
  • GCR-PA-8: Not Used
  • GCR-PA-9: Human Resources--Professional Development
    • GCR-PA-9.1: Individual CPE Record
    • GCR-PA-9.2: Notification Form--In-house CPE Program
    • GCR-PA-9.3: Qualifications--In-house CPE Program
    • GCR-PA-9.4: Attendance Record and Course Outline--In-house CPE Program
    • GCR-PA-9.5: Participant's Evaluation--In-house CPE Program
    • GCR-PA-9.6: Evaluation Summary--In-house CPE Program
    • GCR-PA-9.7: Instructor's Evaluation--In-house CPE Program
  • GCR-PA-10: Human Resources--Performance Evaluation, Compensation, and Advancement
    • GCR-PA-10.1: Professional Staff Evaluation
    • GCR-PA-10.2: Administrative Staff Evaluation Form
  • GCR-PA-11: Engagement Performance
    • GCR-PA-11.1: Engagement Performance Policy and Procedures Drafting Form
    • GCR-PA-11.2: Engagement Performance Bridging Document with QCM Described--Compilations and Reviews
    • GCR-PA-11.3: Engagement Performance Bridging Document with QCM Described--Attestation Engagements
    • GCR-PA-11.4: Presumptively Mandatory Departure, Consultation, Differences of Opinion, and Engagement Withdrawal Documentation Form
    • GCR-PA-11.5: Engagement Quality Control Review Form
  • GCR-PA-12: Monitoring
    • GCR-PA-12.1: Monitoring Policy and Procedures Drafting Form
    • GCR-PA-12.2: Checklist for Administering a Monitoring Program
    • GCR-PA-12.3: Inspection/Review Checklist--Firm with Two or More Professionals
    • GCR-PA-12.4: Inspection/Review Checklist--Sole Practitioner with No Professional Staff
    • GCR-PA-12.5: General Compilation Engagement Review Checklist
    • GCR-PA-12.6: General Review Engagement Review Checklist
    • GCR-PA-12.7: Annual Monitoring Communication Drafting Form
    • GCR-PA-12.8: Summary of Monitoring Findings and Recommendations Drafting Form
    • GCR-PA-12.9: Summary of Identified Monitoring Deficiencies
    • GCR-PA-12.10: Documentation and Resolution of Complaints and Allegations Made Against the Firm
  • GCR-PA-13: Model Quality Control Documents
    • GCR-PA-13.1: Model Quality Control Document--Firms That Perform Only Compilation and Review Engagements
    • GCR-PA-13.2: Model Quality Control Document--Sole Practitioner Firm with One or More Professional Staff That Performs Only Compilation and Review Engagements
    • GCR-PA-13.3: Model Quality Control Document--Sole Practitioner Who Performs Only Compilation and Review Engagements
    • GCR-PA-13.4: Quality Control Policies and Procedures Drafting Form--Firms That Perform Only Compilation and Review Engagements
  • GCR-PA-14: Assessing the Adequacy of the QC System
    • GCR-PA-14.1: Questionnaire to Identify Need for QC System Revisions
  • GCR-PA-15: Not Used
  • GCR-PA-16: Peer Review
    • GCR-PA-16.1: Checklist of Administrative Procedures Involved in an Engagement Review
    • GCR-PA-16.2: Representation Letter Drafting Form

• CPE & Training Solutions

• INDEX

• Guide to Quality Control: Compilation and Review: List of Substantive Changes and Additions View
• Guide to Quality Control: Compilation and Review Sample View