Is the quality of work of accounting firms related to their size? Numerous studies in the past, as well as narrative evidence, suggest that small accounting firms generally tend to perform lower quality accounting than their larger counterparts. This is understandable because small businesses tend to be more competitive. As a result, they have less “fat” to absorb the costs and maintain various policies and procedures to ensure quality results.
Although these results are controversial, small accounting firms still need to identify specific issues where quality can be compromised and explore possible solutions to ensure the best possible image of professionalism and efficiency, regardless of size.
The Australian Institute of Chartered Accountants of Australia and CPA Australia refer to the APES 320 Enterprise Quality Assurance Standard, which provides detailed guidance on this topic. If the above quality standards do not meet the specific requirements of small accounting firms, the current standard describes the quality approach (that is, it is not mandatory). At least six areas must be covered to properly meet the quality requirements.
- Take responsibility. Companies must develop policies and procedures that foster an internal culture that recognizes that quality of work is essential to meeting the customer’s commitment. In addition, a person in the company must have sufficient authority to monitor the quality process. To make sure that the system is not configured and that it stays on its own devices, someone really verifies the true commitment to quality. However, the owners of the company are ultimately responsible for the company’s commitment to quality.
- The ethical requirements. Policies and procedures must also provide reasonable and consistent assurance that the company and its employees comply with all relevant ethical requirements. The basic principles of professional ethics include integrity, objectivity, professionalism, due diligence, confidentiality and professional behavior. The guide should include a scale to respond to threats that conform to basic principles.
An essential aspect of ethical requirements is that homeowners must be able to obtain reasonable assurance that the corporation and its employees will remain professionally independent when needed. The entity must be able to identify and assess circumstances and relationships that may compromise its independence, take appropriate mitigation measures or withdraw from participation if the option is offered by law. force.
- Customer relations and concrete commitments. The main reason for almost all accounting firms is the constant customer relationship and sometimes the acceptance of new connections. Therefore, the preparation of policies and procedures must be initiated because the company can reasonably determine that it only maintains or maintains relationships when the standards are met.
These standards consist of: A competent, participatory, shared-capacity company, with time and resources that can meet applicable ethical requirements, respect the integrity of the client and do not prove that the client believes in lack of integrity. Although the vast majority of customers meet these criteria, they fail once or twice during the test. Therefore, these tests must be abandoned. The risks for these customers can not be sufficiently underlined.
- Human resources. All accounting firms have enough staff to perform their duties. As a result, the Company needs reasonably sound policies and procedures to have sufficient qualified and ethical personnel to operate in accordance with current professional standards and regulatory requirements.
In addition, it is important for the company to know the capabilities of its employees so that it spreads accordingly: it is the old concept of work that is executed with appropriate staffing levels.