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The MGI Worldwide QA System Quality is not an act, its a habit. - - PowerPoint PPT Presentation
The MGI Worldwide QA System Quality is not an act, its a habit. - - PowerPoint PPT Presentation
The MGI Worldwide QA System Quality is not an act, its a habit. Aristotle We look at how you work, not what you do. Clive The QA cycle Every year QA Self Assessment questionnaire Feedback on responses You
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We look at how you work, not what you do.”
Clive
“
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The QA cycle
Every year
- QA Self Assessment
questionnaire
- Feedback on responses
- You improve on priority
areas Every three years
- We visit you to compare
your responses with real procedures in place.
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The QA improvement process
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Your QA Questionnaire Your QA Colour coded Questionnaire
Account DocSafe Your
Your QA Colour coded Questionnaire
Your improvement priorities
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Colour- coded copy of your questionnaire
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RED (key areas)
The firm must improve their policies and procedures in these areas. Improvement planning
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ORANGE (important areas)
The firm should improve their policies and procedures in these areas. Improvement planning
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YELLOW (best practice)
The firm is strongly encouraged to either implement new policies and procedures (if applicable) or improve existing policies and procedures in these areas. Improvement planning
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BLUE (good practice)
We recommend the firm considers either implementing new policies and procedures (if applicable) or improving existing policies and procedures in these areas. Improvement planning
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QA Self-assessment questionnaire
The new online system (beta testing)
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Getting help to improve
Go to our website Members’ Area
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Getting help: online documents
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Getting help: online documents
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Getting help: online webinars
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Accompanying materials
- Webinar notes
- IFAC guide to Quality - Control for
Small and Medium Sized Practices
Getting help: online webinars
Quality assurance ISQC1 Ethics &Audit independence
Accompanying materials
- ISQC1 - full
standard
- MGI ISQC1 -
guidance notes Accompanying materials
- Webinar notes
- MGI Worldwide guide to completing the audit
independence register
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The QA cycle
Every year
- QA Self Assessment
questionnaire
- Feedback on responses
- You improve on priority
areas Every three years
- We visit you to compare
your responses with real procedures in place.
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Quality review
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Firm selection criteria for review in first year
July 2017 to June 2018
- Significant audit volume.
- Higher risk audit
– Listed, PIE, cross-border
- Roughly proportional across Areas.
- A few smaller firms.
- Avoid problem firms in first year.
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Who?
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North America
5
Europe
8
Asia
4
Australasi a
2
Latin America
6
UK&I
2 Africa 1
MENA
2
Firms for review 1 Jul 2017 – 30 Jun 2018
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What?
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What will we be looking for?
- How good is your QA?
- How close are your real procedures to your
questionnaire responses?
- What did your own reviewers say?
- What have done to improve:
– Questionnaire priorities – Your reviewers’ recommendations
- How good a member are you?
– English language capability – Response time – Attendance at meetings – Relationship with other members and with MGI
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How?
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How are reviews carried out?
- Reviewers selected by Technical Committee in
each Area
- Timing to be convenient for firms
- Minimum practical time
– This is not a regulator review
- Provisional findings discussed with firm
- Reviewer reports to TC and discusses with SWAT
UK and CEO
- TC assesses and classifies firm
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Then what happens?
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What is the classification?
- Level 1 – very good or excellent quality. Some
minor deficiencies may need remediation.
- Level 2 – adequate quality. Reasonable quality
assurance systems are in place but some significant deficiencies require remediation.
- Level 3 – poor quality. Quality assurance
systems are substantially deficient and require significant effort and investment of resources to remedy.
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So what?
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What effect do the classifications have?
Level 1 An MGI Worldwide star firm. Not much to add. The firm may need to do a bit of tidying up and wait calmly for the next review.
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What effect do the classifications have?
Level 2 The firm is basically OK but does have some important issues to deal with. An improvement plan will be agreed with the firm. The TC may require a follow-up visit if the issues are serious enough. Follow-up visits are at the firm’s expense.
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What effect do the classifications have?
Level 3 The firm has very serious QA problems. The TC may decide the firm is not going to improve and recommend you leave MGI Worldwide. If the firm stays there will be a compulsory follow-up visit. Follow-up visits are at the firm’s expense.
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Audit independence
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Which clients do you register?
- Cross-border entities
- Listed companies
– In your country or abroad
- Other Public Interest Entities (PIEs)
You must also check the register when you take
- n one of these kinds of
clients!
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The online Audit Independence Register
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How is the system governed?
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General Meeting of Members Executive Committee Company Secretary SWAT UK International Committee Technical Committee Reviewers CEO
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