Practice Review Framework & Cycle

The reviews are carried out over a defined period of time referred to as the review cycle. For firms with clients who are public interest entities (PIE), the period is three years and those without PIE clients it is six years. The rationale is that by the end of each review cycle, all the audit firms should have been reviewed at least once.

For every practice review undertaken there are two (2) possible outcomes which are satisfactory and unsatisfactory. If satisfactory, then the next review will be in next review cycle. If unsatisfactory at the first instance, a re-review with a full scope review is required in one year’s time for firms with PIE clients and two years for those without PIE clients. Firms with consecutive unsatisfactory results will be given a chance to make improvements by equipping them with necessary tools. However, if the firm’s outcome is unsatisfactory for the third time, then it is referred to the Disciplinary Committee for appropriate action by the Practice Review Committee . Referral to the Disciplinary Committee is imperative when the public is at risk or re-reviews indicate failure to implement corrective action or flagrant disregard of professional standards or refusal to co-operate in the review process.

Benefits of Practice Reviews

The following are the benefits to be derived from this process:

  • The  perception that the public has of the profession will improve in that it will not only be seen as one that promulgates high standards, but one that also monitors and enforces those standards;
  • It will provide an important base for an educational and supportive service that will assist practitioners in maintaining and improving the quality of their work;
  • Assist in identifying and removing from practice those practitioners who do not adhere to professional standards;
  • Help in downward negotiating of the cost of professional indemnity cover since the risks will be reduced by the fact that the profession is subject to effective monitoring;
  • Place the profession in a stronger position to influence the future direction of regulatory involvement in the activities of practitioners, particularly the audit function;
  • Help demonstrate that the profession is committed to self-regulation and to ensuring the highest standards of professional work.