practice management for chartered accountants in practice
DESCRIPTION
As presented to practising members of the Institute of Chartered Accountants, Ghana.TRANSCRIPT
PRACTICE MANAGEMENT
PRESENTED BY:
CHARLES EGAN
HEAD REVIEWER,
AUDIT QUALITY MONITORING
ICAG
PRACTICE MANAGEMENT --
AGENDA
OVERVIEW OF REQUIREMENTS,
REGULATION AND STANDARDS
PRACTICE GUIDANCE FOR SMPs – IFAC
GUIDE
KEY DISCUSSION TOPICSOVERVIEW OF REQUIREMENTS, REGULATION AND
STANDARDS
FULL MONITORING
RISK MANAGEMENT
PRACTICE DEVELOPMENT
PRACTICE REGULATIONS
SETTING UP A PRACTICE
SETTING UP A PRACTICE
ENGAGING IN PUBLIC PRACTICE?
REGISTERATION UNDER ACT 151,152 OR 179
LIMITATIONS UNDER ACT 179 REGISTRATION
INTEND NOT TO CARRY OUT STATUTORY AUDITS BUT
ONLY OTHER SERVICES?
ISQC 1
INTEND TO CARRY OUT STATUTORY AUDITS AND OTHER
SERVICES?
ISQC 1
AUDITING SYSTEMS THAT COMPLY WITH ISAs
FIRM LICENSED BY ICAG?
DO YOU HAVE A PRACTISING CERTIFICATE?
LEGAL COUNSEL’S
CONCLUSION
There are no LLPs in Ghana;
A partnership under Act 179
can no longer be deemed a
partnership but a company
and is thus not qualified to
be an auditor of a company
as provided for in Section
134(2) of Act 179
LEADERSHIP
ETHICAL REQUIREMENTS
ACCEPTANCE AND CONTINUANCE
HUMAN RESOURCES
ENGAGEMENT PERFORMANCE
MONITORING
INTERNATIONAL STANDARDS ON
QUALITY CONTROL 1 (ISQC 1)
PRACTICE
REGULATIONS
COMPLY WITH ANTI-MONEY LAUNDERING REGULATION ?
COMPLY WITH BYE-LAWS?
COMPLY WITH AUDIT REGULATION?
IS YOUR FIRM LICENSED & ARE PRACTICE CERTIFICATES IN ORDER?
COMPLY WITH OTHER RELEVANT LEGISLATION
PRACTICE
DEVELOPMENTPEOPLE ISSUES
RECRUITING;
TRAINING
(THEORY AND
PRACTICAL);
RETENTION
PRACTICE
DEVELOPMENT
ACQUISITION;
ENGAGEMENT;
DISENGAGEMENT
DISPUTES
CLIENT RELATIONSHIP
CLIENT
ISSUES:
PRACTICE
DEVELOPMENTFIRM ISSUES
COSTING OF
JOBS/RECOVERY
PERCENTAGES
RISK MANAGEMENT
SUCCESSION
PLANNING
RISK MANAGEMENT
HOT FILE REVIEWS
COLD FILE REVIEWS
ENGAGEMENT QUALITY
CONTROL REVIEWERS
ANNUAL COMPLIANCE
REVIEW (WFR & CFR)
QUALITY CONTROL
RISK MANAGEMENT
REGULATORY
COMPLIANCE
SECURITY OF
PHYSICAL ASSETS
FRAUD AND OTHER
BUSINESS CRIME
IT SECURITY
RISK MANAGEMENT
BUSINESS CONTINUITY
BUSINESS CONTINUITY
PLANS
DISASTER RECOVERY
PLANS
PROFESSIONAL
INDEMNITY
INSURANCE (PII)
FULL MONITORING
REVIEW
WHOLE FIRM REVIEW (WFR)
ALL ACCOUNTANCY PRACTISING FIRMS
ENGAGEMNT LEVEL REVIEWS
(CFR)
ONLY ACCOUNTANCY PRACTISING
FIRMS CARRYING OUT AUDITS/ASSURANCE
SERVICES
MODULES UNDER SMP PRACTICE
MANAGEMENT GUIDE ---IFAC
PUBLICATION
Module 1: Planning for your firm
Module 2: Practice models and networks
Module 3: Building and growing your firmModule 4: People power: Developing a people strategyModule 5: Technology and e-business
Module 6: Client relationship management
Module 7: Risk management
Module 8: Succession planning
PLANNING YOUR FIRM
(CONT’D)
Specialise or generalize? Your competitive
strategy
Overall cost leadership
Differentiation
Focus
PLANNING YOUR FIRM
(CONT’D)
Need for business planning
Developing a competitive strategy;
Brief statement of mission, vision and values;
Statement outlining the technical service deliveries;
Human relations- people and skills required;
More detailed plans;
Budgets, which support components above; and
Policies and Procedures
Effective relations with clients and employees
PLANNING YOUR FIRM (CONT’D)
Developing plans for your firm’s various
functions
Building a risk management mind set into your
firm
Implementing practice manuals and systems
Using benchmarks to drive performance and
improvement
PLANNING YOUR FIRM (CONT’D)
The business of running your firm
Find a client
Taylor a service
Agree price & terms
Engagement Letter
Gather informatio
n
Deliver service
Communicate outcome
Bill & collect
Firm
PLANNING YOUR FIRM (CONT’D)
Monitoring external factors
Business continuity – short term
and long term imperative
10 STEPS TO SUCCESSFUL RISK
MANAGEMENT
1 • STARTWITH QUALITY RECRUITMENT PROCESS
2 • ENSURE EMPLOYEES ARE PROPERLY TRAINED
3 • DO NOT DELEGATE TASKS BEYOND CAPABILITY LEVEL
4 • ENSURE EMPLOYEES ARE AWARE OF SYSTEMS AND STANDARDS
5 • IDENTIFY WEAKNESSES OR PROBLEMS WITH SYSTEMS
6 • EMPLOY PROPER REVIEW PROCESS
7 • MAINTAIN ADEQUATE SPREAD IN YOUR FEES
8 • HAVE ADEQUATE INSURANCE
9 • BACK UP YOUR RECORDS AND TECHNOLOGY
10 • BE FULLY AWARE OF PRIVACY AND CONFIDENTIALITY
BUILDING AND GROWING YOUR FIRM
Developing a business plan for your firm
Assessing growth requirements and developing a growth strategy
Strategies for coping with increased regulation and competition
BUILDING AND GROWING YOUR FIRM
(CONT’D)
Creating a culture for your
firm
Identifying target clients
and new service
opportunities
Building a brand
marketing and promotions
Putting your plans into
operation
Financial management
Meeting the challenge of acquiring new clients in the current economic environment
Identifying additional revenue streams that could be developed
Value-added services: developing profitable practice or service area niches
BUILDING AND GROWING YOUR FIRM
(CONT’D)
Using networks to add value and grow profitability
Improving the quality of your service: what will make you stand out and how can you offer a better service than your competitors?
Expanding through the purchase/merger of an accounting practice: what are the benefits and drawbacks?
BUILDING AND GROWING YOUR FIRM
(CONT’D)
DEVELOPING A
PEOPLE
STRATEGY
PEOPLE POWER
PEOPLE POWER – DEVELOPING A PEOPLE
STRATEGY
Your firm and its people
Business planning and staffing strategies need to be linked
Factors impacting people management
Community expectations
Economic changes
PEOPLE POWER – DEVELOPING A PEOPLE
STRATEGY (CONT’D)
Your people
management strategy
Mix of employees
Recruitment
Induction
Clarifying
expectations
PEOPLE POWER – DEVELOPING A PEOPLE STRATEGY (CONT’D)
Leading your
team
Managing and
retaining
employees
Training and
development
Tone at the top Motivation Identifying
development
needs
Communication Staff
retention
Development is
an investment
Delegation Performance
management
Remuneration
Assessing
performance
PEOPLE POWER – DEVELOPING A PEOPLE STRATEGY (CONT’D)
Rewards and
recognition
Exiting/transitioning
employees
Rewards Termination
Providing recognition Exit surveys
CLIENT RELATIONSHIP
Knowing your client
Reviewing your client base
Measuring & exceeding client expectations
Benchmark service levels
Embracing opportunities
Developing strategies to provide a full range of quality services : mergers, networking , referrals
Invoicing and collection --- Why clients don’t pay
Conflict resolution & arbitration
Ceasing a client relationship
SUCCESSION PLANNING
SUCCESSION PLANNING
Develop your succession plan
Select succession option
Partnerships, consolidations, mergers &
acquisitions
Sale of firm, fee parcel or progressive sell-down
Developing internal succession plans Valuation considerations
Exit considerations
ICAEW:
QUALITY CONTROL AND AUDIT DESCIPLIN
ICAEW:
ETHICAL MATTERS
THANK YOU
COMMENTS???
QUESTIONS???
SUGGESTIONS?
??