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, it’s 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 improve on priority areas Every three years • We visit you to compare your responses with real procedures in place.

The QA improvement process

Your improvement DocSafe priorities Your Account Your QA Colour coded Questionnaire Your QA Your QA Questionnaire Colour coded Questionnaire

Colour- coded copy of your questionnaire

Improvement planning RED (key areas) The firm must improve their policies and procedures in these areas.

Improvement planning ORANGE (important areas) The firm should improve their policies and procedures in these areas.

Improvement planning 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 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.

QA Self-assessment questionnaire The new online system (beta testing)

Getting help to improve Go to our website Members’ Area

Getting help: online documents

Getting help: online documents

Getting help: online webinars

Getting help: online webinars Accompanying materials Quality assurance - Webinar notes - IFAC guide to Quality - Control for Small and Medium Sized Practices ISQC1 Ethics &Audit independence Accompanying materials - ISQC1 - full standard Accompanying materials - MGI ISQC1 - - Webinar notes guidance notes - MGI Worldwide guide to completing the audit independence register

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.

Quality review

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.

Who?

Firms for review 1 Jul 2017 – 30 Jun 2018 Europe North America Asia 8 5 4 UK&I 2 MENA 2 Africa 1 Latin America 6 Australasi a 2

What?

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

How?

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

Then what happens?

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.

So what?

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.

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.

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.

Audit independence

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 on one of these kinds of clients!

The online Audit Independence Register

How is the system governed?

General Meeting of Members International Company CEO Committee Secretary Executive Technical Committee Committee SWAT UK Reviewers

Thank you Any questions?