CA ANZ quality reviews: a chance to improve your practice
A CA ANZ quality review helps you improve your firm’s quality management systems and maintain the profession’s high standards.
Quick take
- Members in public practice can be randomly reviewed to ensure they have an adequate system of quality management.
- The review process is designed to minimise disruption to your practice.
- Becoming a reviewer is a way to give back to the profession and maintain the high standards expected of CAs.
As part of its professional framework, CA ANZ randomly selects a number of practices at which to conduct a review.
The aim of the Quality Practice Review Program is to assess whether the practices have a system of quality management in place that complies with professional standards, to ensure they comply with the code of ethics, and other legal and regulatory requirements.
Where systems require enhancement, reviewers work with the practice to highlight and remediate problem areas – often using tools already available through CA ANZ.
In Australia, the requirements for establishing a quality management system are set out in ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (ASQM 1) and APES 320 Quality Management for Firms that provide Non-Assurance Services (APES 320).
All members in public practice may be selected for review. In 2023, 305 reviews were completed in Australia, says Kristen Wydell FCA, general manager, professional standards at CA ANZ.
“The Quality and Practice Review Program is one way we help our members in practice maintain a consistently high standard of quality and service to their clients. It is also key to upholding the integrity of the CA designation,” Wydell says.
Conducting a review is also a necessary condition of CA ANZ being recognised as a professional accounting body by regulators, both in Australia and internationally.
“Importantly, we also use the knowledge gained from the program to promote continuous improvement throughout the accounting profession,” adds Wydell.
How does it work?
While a quality review is a mandatory obligation, making sure your practice doesn’t overlook key aspects required in your system of quality management is not complicated. The advice from experienced quality reviewers is clear: do your research and make use of the tools provided by CA ANZ to help you get your practice and your files in order. The checklists reviewers use are available on the CA ANZ website and can be used as a self-assessment tool to make sure you are on track.
A kick-off webinar for all practices selected explains the review process and gives you the opportunity to hear from an experienced reviewer. While it may seem daunting to a member who has not undergone a review previously, the process is designed to minimise disruption to your practice and no special preparation is required or expected, says Wydell.
“The reviews are conducted by experienced practitioners who work, or have worked, in public practice. They are respected professionals with extensive practical experience and a strong commitment to continuous improvement in the profession,” she says.
Once assigned, the reviewer visits the practice or, in some instances, performs the review remotely, examining the practice’s policies, manuals, other documentation and a selection of engagement files, to assess whether an appropriate system of quality management is in place. The findings are then discussed with you and any outstanding issues are resolved, before the review findings are sent to CA ANZ.
“The summarised findings are used to prepare your review results letter, which formalises the outcomes of your review and outlines any further action necessary on your part,” says Wydell. “To get the most out of your review, leverage the time with the reviewer, ask lots of questions, and pick their brain for ideas and suggestions – reviewers are happy to help,” she says.
What happens if I ‘fail’ my quality review?
Quality reviews are completed primarily for educative purposes and are not designed to catch people out. Essentially, reviewers complete questionnaires, review documentation including engagement files, meet partners at the practice and then share suggestions for how to improve the practice
“If we find your practice is lacking, the reviewer will help you develop an action plan and come back in 12 months to check all the actions have been completed.
“If some actions are urgent or protective to consumers or your clients, we may require compliance immediately; for example, if you do not have sufficient professional indemnity insurance, or you haven’t had a client monies account audited,” says Wydell.
In 2023, 81% were reviewed to be satisfactory or satisfactory with some improvement, and only 16% required a follow-up review.
A very small number of members are referred to professional conduct as a result of the review program.
“This is usually because a member doesn’t comply with our request to complete a review, doesn’t complete the agreed action plan or the reviewer finds your system of quality management is seriously lacking,” says Wydell.
How to become a reviewer
Anyone who is a current member of CA ANZ with five to 10 years’ experience at a senior level in public practice, ideally as a principal or partner, is eligible to become a reviewer.
“We are currently looking for members to become quality reviewers. They need to be knowledgeable about how a good accounting practice operates, have experience across a wide variety of clients and types of services, and enjoy helping others learn and improve,” says Kristen Wydell FCA, general manager, professional standards at CA ANZ.
“Our members greatly appreciate the experience and guidance our reviewers bring. We often receive feedback that spending time with them discussing the practice and its system of quality management is invaluable.
“Our quality reviewers are usually motivated by a desire to give back, rather than monetary reward, and are often retired, semi-retired or approaching retirement, and seeking to contribute to maintaining the high standards of the profession” she says. “They have also walked in the shoes of the members they review, which is really important for the acceptance of the findings by the member being reviewed.”
One of CA ANZ’s newer reviewers is Carol-Ann Wong FCA, who is also a CA Program facilitator. She approaches reviews with a coaching mindset and says the broad variety of practices she reviews (size and nature of services offered) is what makes the role so interesting. All are receptive to her feedback – be it validation their investment in quality is paying off, or appreciation for directing them to member resources they hadn’t been aware were available.
