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PPC's Guide to Quality Control: Compilation and Review

PPC's Guide to Quality Control: Compilation and Review

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  • Frequency of Updates:

    Updated annually
  • Brand:
    Practitioners Publishing

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Book
Product Code:
GCRP
$310.00

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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

DESCRIPTION

Contact Your Account Manager to learn more about our Checkpoint online solutions

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.

TABLE OF CONTENT

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

RELATED RESOURCES

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