Our CPA Peer Review Quality Control checklist ensures comprehensive financial case evaluations, identifies issues, prepares corrective measures and reports findings.
1
Select a group of cases to be reviewed
2
Analyze financial statements
3
Evaluate internal control systems in place
4
Examine selected financial transactions for compliance
5
Review client engagement letters and other contractual agreements
6
Cross check the numbers with supporting documents
7
Identify and record any signs of fraudulent activities
8
Approval: Financial Statement Review
9
Prepare a report of findings
10
Communicate findings to the team internally
11
Prepare corrective measures for identified problems
12
Approval: Corrective Measures
13
Communicate corrective measures to the client
14
Review client's response and actions taken
15
Check for compliance of corrective actions with professional standards
16
Approval: Compliance Check
17
Prepare final report for the client
18
Review and file relevant documentation for future reference
19
Approval: Final Report
20
Communicate final report and findings to the client
Select a group of cases to be reviewed
This task involves selecting a group of financial cases that will be reviewed. The selection should be based on predetermined criteria such as risk level, complexity, or importance. Consideration should also be given to the availability of resources and time. The desired result of this task is to have a well-rounded sample of cases that can provide a representative snapshot of the overall financial performance and compliance of the clients. Do you have a specific criteria in mind? How can you ensure that the selected cases are a good representation?
1
Random selection
2
Based on risk level
3
Based on complexity
Analyze financial statements
This task requires a thorough analysis of the financial statements of the selected cases. The analysis should include the identification of key financial ratios, trends, and anomalies. It is important to delve deeper into any irregularities or inconsistencies found. The desired result of this task is to have a clear understanding of the financial health and performance of the clients. What are the key financial ratios that you will be analyzing? How will you identify and investigate any anomalies?
Evaluate internal control systems in place
This task involves evaluating the internal control systems in place within the clients' organizations. The evaluation should focus on the design, implementation, and effectiveness of these systems in providing reasonable assurance for the reliability of financial reporting, the safeguarding of assets, and the compliance with applicable laws and regulations. The desired result of this task is to identify any weaknesses or gaps in the internal control systems. How will you assess the design and implementation of internal control systems? What are the key areas of concern that you will be looking for?
1
Questionnaires
2
Interviews
3
Walkthroughs
4
Testing
Examine selected financial transactions for compliance
This task involves an examination of selected financial transactions for compliance with relevant laws, regulations, and established policies and procedures. The examination should be focused on the accuracy, completeness, and validity of the transactions. The desired result of this task is to identify any instances of non-compliance and recommend corrective actions as necessary. How will you identify non-compliant transactions? What are the potential challenges in examining financial transactions?
Review client engagement letters and other contractual agreements
This task requires a review of the client engagement letters and other contractual agreements in place. The review should ensure that the terms and conditions outlined in these documents are consistent with the services provided and the agreed-upon fees. The desired result of this task is to verify the accuracy and completeness of the contractual agreements. How will you ensure the consistency between the agreements and the services provided? What are the key terms and conditions that you will be looking for?
Cross check the numbers with supporting documents
This task involves cross-checking the financial numbers in the statements and documents with the supporting evidence. The purpose is to ensure the accuracy and reliability of the reported numbers. Any discrepancies or inconsistencies should be investigated further. The desired result of this task is to have confidence in the accuracy of the reported financial information. How will you cross-check the numbers? What are the potential challenges in this process?
Identify and record any signs of fraudulent activities
This task requires the identification and recording of any signs of fraudulent activities. These signs may include unusual transactions, unexplained discrepancies, or irregularities in the financial statements. The desired result of this task is to have a record of potential fraud indicators that can be further investigated. What are the common signs of fraudulent activities that you will be looking for? How will you document and report these indicators?
1
Unusual transactions
2
Unexplained discrepancies
3
Irregularities in financial statements
Approval: Financial Statement Review
Will be submitted for approval:
Analyze financial statements
Will be submitted
Prepare a report of findings
This task involves the preparation of a comprehensive report of the findings from the review process. The report should provide a clear and concise summary of the identified issues, their root causes, and recommended actions for improvement. The desired result of this task is to have a well-structured and informative report that can be used by the team and the clients. How will you structure the report? What should be included in the summary?
Communicate findings to the team internally
This task requires the communication of the findings to the team internally. The purpose is to share the identified issues, get feedback from team members, and ensure a common understanding of the findings. The desired result of this task is to have a clear and shared understanding of the findings among the team members. How will you communicate the findings? How will you ensure that the team members understand and acknowledge the findings?
1
Sign-off form
2
Meeting minutes
3
Email confirmation
Prepare corrective measures for identified problems
This task involves the preparation of corrective measures for the identified problems. The measures should be practical, actionable, and targeted at addressing the root causes of the issues. The desired result of this task is to have a set of well-thought-out solutions that can be implemented to improve the clients' financial performance and compliance. How will you ensure the practicality and feasibility of the corrective measures? What are the key considerations in designing the measures?
Approval: Corrective Measures
Will be submitted for approval:
Prepare corrective measures for identified problems
Will be submitted
Communicate corrective measures to the client
This task requires the communication of the corrective measures to the client. The purpose is to inform them about the identified issues and the recommended solutions. The communication should be clear, concise, and tailored to the clients' understanding. The desired result of this task is to have a client who is aware of the issues and committed to implementing the corrective measures. How will you tailor the communication to the clients' understanding? How will you ensure the clients' commitment to the solutions?
1
Client sign-off
2
Confirmation email
3
Follow-up meeting
Review client's response and actions taken
This task involves reviewing the client's response to the identified issues and the actions they have taken to address them. The review should focus on the adequacy and effectiveness of the response and actions. The desired result of this task is to have a clear understanding of the clients' commitment to improvement. How will you assess the adequacy and effectiveness of the response? What are the key indicators of commitment to improvement?
1
Timely response
2
Follow-up actions
3
Allocated resources
Check for compliance of corrective actions with professional standards
This task requires checking the compliance of the clients' corrective actions with professional standards. The check should ensure that the actions are in line with the best practices and guidelines of the CPA profession. The desired result of this task is to have clients who are not only improving their financial performance and compliance but also doing so in a manner that aligns with professional standards. What are the key professional standards that you will be checking for? How will you assess the compliance of the actions?
Approval: Compliance Check
Will be submitted for approval:
Check for compliance of corrective actions with professional standards
Will be submitted
Prepare final report for the client
This task involves the preparation of a final report for the client. The report should summarize the overall review process, the identified issues, the corrective actions taken, and the clients' commitment to improvement. The desired result of this task is to have a comprehensive and client-ready report that can be shared with the clients. How will you summarize the review process? What key elements should be included in the report?
Review and file relevant documentation for future reference
This task requires the review and filing of relevant documentation for future reference. The documentation should include all the supporting evidence, working papers, and correspondence related to the review process. The desired result of this task is to have a well-organized and easily accessible documentation system. How will you organize the documentation? What are the key considerations in filing the documents?
Approval: Final Report
Will be submitted for approval:
Prepare final report for the client
Will be submitted
Communicate final report and findings to the client
This task involves the communication of the final report and findings to the client. The purpose is to provide them with a comprehensive review of their financial performance and compliance and the actions taken to improve them. The communication should be clear, concise, and tailored to the clients' understanding. The desired result of this task is to have a client who is well-informed and satisfied with the outcomes. How will you tailor the communication to the clients' understanding? How will you measure their satisfaction with the outcomes?
