Discussion:CPA Firm System of Quality Control
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Revision as of 10:41, 29 November 2006 JCCPA (Talk | contribs) (Very good, Natal) Next diff → |
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| {{ForumReplyPost|UserID=Natalie|Date=November 29, 2006|Text=Actually, I found out I was not required to have a formal document even if I had pursued auditing. My peer reviewer told me that if I didn't have a formal document, he would give me a list of questions to complete. The would serve as documentation to him what my policies were. I do not have any employees. I'm not sure if the requirements change if you have employees.}} | {{ForumReplyPost|UserID=Natalie|Date=November 29, 2006|Text=Actually, I found out I was not required to have a formal document even if I had pursued auditing. My peer reviewer told me that if I didn't have a formal document, he would give me a list of questions to complete. The would serve as documentation to him what my policies were. I do not have any employees. I'm not sure if the requirements change if you have employees.}} | ||
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| + | {{ForumReplyPost|UserID=JCCPA|Date=29 November 2006|Text=Very good, Natalie....I think that if there are other CPAs and other employees then you are required to have a formal QCD....but if/WHEN I find out otherwise, I will post it here....ALL OF THE PPC CHECKLISTS ARE REFERRING TO A SYSTEM OF QUALITY CONTROL....}} | ||
Revision as of 10:41, 29 November 2006
Discussion Forum Index --> Accounting Questions --> CPA Firm System of Quality Control
| 29 November 2006 | |
| Hi All:
Question regarding a CPA Firm System of Quality Control. My own firm is somewhat lacking in this category and I thought I'd get feedback as to what other firms are doing. I have always been under the assumption that, essentially, a sole proprietor does not need to have a separately stated System of Quality Control. Now that I am doing audits (yellow book), I was wondering what other firms are or are not doing. This question is not about CPE (I am all set with the 40 hour per year requirement).... I am wondering only what other sole proprietors, who do audits, have for a system of quality control that satisfies PEER REVIEW requirements....! Thx in advance!!!! | |
| November 29, 2006 | |
| When I went out on my own, I thought I'd have to have a Quality Control Document (QCD). Therefore, when I attended a seminar about auditing and internal controls, I asked the instructor if I could have a copy of his firm's QCD. He gave it to me. I also have a copy from a local peer reviewer. As it turns out, I don't need either copy. After I found out how much more my costs would be (higher peer review and liability insurance), I decided not to offer auditing services. You might want to check with a local CPA. If you don't know any, I highly recommend you start networking. I've found other CPAs to be wonderful resources. | |
| 29 November 2006 | |
| Thanks, Natalie.
I've been operating under the assumption that as a sole practitioner, you are not required to have a QCD. I've been operating under the assumption that ONLY if you are more than a solo then you must have a QCD...so all CPAs and CPA candidates in your firm are in compliance with the firm standards (QCD.) As of now, as a sole practitioner, I do not have one. I'm still not convinced that one is needed for a sole practitioner but I am working on trying to find the answer - I need to take care of that NOW. My overhead fees (peer review, ppc guides) as a percentage against the audit revenue makes the audit work worth the while..... Thanks again for your valued and trusted input ! | |
| November 29, 2006 | |
| Actually, I found out I was not required to have a formal document even if I had pursued auditing. My peer reviewer told me that if I didn't have a formal document, he would give me a list of questions to complete. The would serve as documentation to him what my policies were. I do not have any employees. I'm not sure if the requirements change if you have employees. | |
| 29 November 2006 | |
| Very good, Natalie....I think that if there are other CPAs and other employees then you are required to have a formal QCD....but if/WHEN I find out otherwise, I will post it here....ALL OF THE PPC CHECKLISTS ARE REFERRING TO A SYSTEM OF QUALITY CONTROL.... | |
