Quality Monitoring Programme
The Quality Monitoring Programme (QMP) is designed to monitor rms’ adherence and compliance with professional standards, as well as incremental BDO standards and requirements, including policies, procedures, methodologies and tools.
At global level, quality monitoring within BDO originates from the BDO Regulations, which stipulate that each firm is subject to Quality Reviews (QRs). In practice, BDO firms are reviewed on the basis of a risk assessment, and otherwise at least once every three years. Equally, the results of the firms’ own Engagement Inspection Programmes (EIPs) are monitored through the global annual Quality Management Programme. Our current focus is on developing QR Programmes that will be performed across all the services lines of our firms (including advisory, tax, BSO and others), and will cover topics such as client acceptance and continuance, ethics and risk management. These programmes will be developed further as policies are updated as part of the review of the International Risk Management Manual. The QMP is managed by the Global Risk & Compliance department and Quality Reviews are carried out by a team of independent and suitably qualified dedicated reviewers, for whom an ongoing training process is in place. The scope of an audit Quality Review includes an assessment of the design and effectiveness of the firm’s Engagement Inspection Programme (EIP), an assessment of compliance with professional and incremental BDO standards, and the review of a sample of engagement files. Over the years, the QMP has evolved from a focus primarily on the review of the audit engagement
files to the review and assessment of the internal controls of our firms. While the Quality Review always includes a review of several engagement files, it now assesses whether a firm’s EIP provides is reliable for QMP purposes. In 2022, work included the assessment and monitoring of our firms’ compliance with professional standards - in addition to the six functional areas that cover leadership, responsibility for quality, ethics and independence, client acceptance and continuance, human resources, engagement performance, and monitoring. The evaluation of a firm’s performance also involves the review of a sample of assurance engagements. Other monitoring procedures are implemented and performed at firm level by the firm’s partners, directors and other responsible person(s) on a periodic and continuous basis. These procedures are focused on compliance with professional standards and incremental BDO standards. Many of our firms are also subject to external inspections by local professional institutes and local regulators; or are subject to a peer review. The Risk & Compliance department requests that all firms report the results of these reviews to the Global Office annually. These results are further analysed for the purpose of reporting to different regulators. Moreover, the results are used to spot trends or any difference with those of the Quality Reviews, in order to improve the monitoring procedures and the QMP on an ongoing basis.
TRANSPARENCY REPORT 2023
11
Made with FlippingBook - Share PDF online