Concerns that the firm’s procedures did not represent current best practice for Reporting Accountants.
Introduction:A mid tier accounting firm acted for a large number of law firms. The firm had procedures in place but was very aware of the risk attached to such assignments and the potential for misinterpreting the requirements of the Rules.
What we did:
The firm’s procedures benefited from a full external review. They were compared to best practice amongst other accounting firms doing this work. The review highlighted a number of weaknesses, inefficiencies in carrying out the work and potential risks. One example of this was where breaches were encountered but the interpretation of trivial that was being used by a number of the reporting partners was almost akin to the audit concept of materiality. This meant that there were numerous occasions where the firm had not reported breaches when it should have done – a high risk strategy!
The review resulted in changes to the standard systems and a tailored training programmes for all staff involved with solicitors practices.
The firm reported increased efficiency on a number of assignments following the review together with an overall improvement in the quality of the work and, it was felt, a reduction in the firm’s exposure on these risky assignments.
