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QAD: the inside story

We were informed of an impending QAD visit towards the end of 2007 with an anticipated date of mid-January, writes Bill Johnson of Seymour Taylor.

As the firm was in the middle of installing the IRIS software packages, I requested a postponement on the grounds that much of what a reviewer would see was going to change or be in its implementation stage. The ICAEW office dealing with the visits was very co-operative and after first setting a date in April, we eventually had the visit during the first week of May.

We were sent a fairly extensive list of documents in advance, which the reviewers stated that they would wish to see, and which did take some considerable time to assemble. We were told that there would be two visitors and that the process would take three days. In the event, their field work was completed in two days and the closing review meeting was the only thing to happen on the third day, taking about 45 minutes in the afternoon.

The reviewers spent the first day looking at four audit files in detail and produced a schedule of queries for each file, which the relevant engagement partner was asked to comment upon by the middle of the second day.

During the second day they looked at some non-audit client files and carried out quite an extensive review of our office procedures including training/CPD records; personnel records; letters of engagement; publicity material; DPB matters/compliance; and practice assurance matters, for example the handling of client monies and a review of the application of the Mercia Practice Assurance Manual.

At the end of the second day, the reviewers agreed to send us a closing meeting agenda, with a summary of their findings. We were asked to make a written response to their findings within three weeks of the closing meeting.

We were pleased to be told that we were fairly compliant in most areas, with no major areas of weakness discovered. The reviewers were very approachable and courteous, as one would have expected, although naturally not too “chummy”

I am not sure we learned very much - indeed on or two of the technical points they raised we believed we were correct and they were not - but apart from noting our differences, diplomacy seemed the right course.

The whole exercise was not traumatic but was enormously time-consuming. We were told to expect that our next visit will be in 2014, unless some matter of concern is reported to the ICAEW in the meantime.