CCAB Training Providers Event 17 November 2008 Reviews Required by QAC Heather Briers Director Chartered Accountants Regulatory Board

Mission and Values Our Purpose To regulate members of the Institute of Chartered Accountants in Ireland, independently, openly and in the public interest Our Mission To deliver a regulatory system of the highest quality thereby enhancing the confidence of all stakeholders

Committee Organisation Chart Compliance Quality Assurance Committee Insolvency Licensing Committee Complaints Committee Disciplinary Tribunal Review Committee Appeal Committee Co-Ordinating Policy Professional Standards Committee Ethics Committee Planning, Budget and Performance Committee UK Joint Recognised Professional Bodies Joint Insolvency Committee Joint Audit Committee Joint Professional Indemnity Insurance Committee CCAB Ethics Group Joint Chartered Accountants Committees Joint Investment Business Committee Chartered Accountants Regulatory Board Chartered Accountants Compensation Scheme Board Governance, Risk and Audit Committee

Quality Assurance High Level Objective 4:Quality Assurance We will ensure Chartered Accountants provide services of the highest quality, competently, honestly and with integrity by operating a risk based approach to monitoring through the annual assessment of information and periodic on-site inspections. We will do so by the following means: Conduct regular proactive inspections to firms where a member of the Institute holds a Practising Certificate Assessment of annual returns submitted by firms and Members in Practice

QAC Structure 16 members - lay and members of ICAI The lay members come from relevant backgrounds Solicitor; Money Laundering Expert; Investment Business Specialist; and Revenue Inspector The members come from different sizes of firms Sole practitioners; 2/4 partner firms; Second tier firms; and Big 4

QAC Goals To improve the standards and quality To ensure compliance going forward To ensure adequate procedures To ensure that practitioners have the appropriate competence

QAC Responsibilities Granting and removing authorisations, registrations and licences Ensuring ongoing compliance with the Regulations by: - Reviewing the outcome of visits and compliance reviews - Ensuring the relevant Annual Returns are made to CARB

Committee Sanctions Remove any licence etc Suspend any licence etc Restrict any licence etc Impose conditions on the firm or any individual Require a monitoring visit Offer a regulatory penalty Make a referral to the Complaints Committee

Restrictions and Suspensions Restrictions include: Restricting the type of audit client, eg, no new regulated client No new investment business clients Not providing compliance review for others. Suspension means: The firm will not be allowed to take on any new Audit or IB clients Hot File Reviews will be required The firm is under ongoing supervision and monitoring

Hot file review Review carried out before audit report signed Carried out by unconnected CARB RA or approved training organisation To inform QAC if firm has complied with relevant laws and standards Actual results NOT submitted to QAC Reviewer submits a prescribed report to the Committee Firm must receive Committee approval before signing the audit opinion

Hot File Review Report Client company name Confirmation review conducted in accordance with firm and QAC instructions Statement that the reviewing entity has not performed a second audit Statement that the report for QAC use only Details of remedial action required by the firm before the reviewer could issue the report

Conditions Can be placed on the firm or individual Audit registration conditional on: –the firm to get assistance from the PAS –an individual or group of individuals obtaining training –an individual or group of individuals require training in a specific audit topic –the introduction of new procedures manual or disclosure checklist Reviewed by Committee following: –Follow up visit –Submission of an external ACR

Audit Compliance Review Standard template or approved report format Whole firm and cold file reviews Cold file reviews –Type of client may be set by QAC –Files must be selected independently by the external reviewer –Conducted after the audit report signed Firm must provide the reviewer with a copy of their visit report

Audit Compliance Review Report must confirm (or otherwise) compliance with: –ISA’s –Statutory disclosure requirements provisions –The ICAI Audit Regulations and Guidance Report must include an: –overall conclusion on the quality of performance –assessment of the remedial action taken since the QA visit Firm must provide an action plan of remedial action to address breaches

Issues Incorrect (or insufficient number) files reviewed Files pre selected by the firm Breaches V Matters for Improvement unclear Report deficiencies including: –Lack of overall assessment –No reference to improvements from QR visit Changes in previously approved report format Report not signed off by the external reviewer Action plan not completed by the firm

Thank you Heather Briers Director Chartered Accountants Regulatory Board Chartered Accountants Regulatory Board