An important publication that did not get sufficient attention at the time it was published in March 2024 was the Professional Standards Board Annual Report (PSD) for 2023 from the Chartered Accountants Ireland. The publication explained the following:
In 2023 the summary of the quality reviews carried out had the following results:
| Quality Review Type | Quality Reviews Completed in Year |
Satisfactory |
Not Satisfactory |
Percentage unsatisfactory |
| Audit | 116 | 87 | 29 | 25% |
| Practice Monitoring | 7 | 6 | 1 | 14% |
| Investment Business | 14 | 14 | 0 | 0 |
| AML UK | 34 | 27 | 7 | 21% |
| AML ROI | 47 | 44 | 3 | 6% |
| Insolvency GB/NI | 4 | 4 | 0 | 0 |
| Insolvency ROI | 9 | 9 | 0 | 0 |
Overall, one in four of the audit quality review outcomes in 2023 were unsatisfactory. The most notable fact is that generally, the firms that fall into this 84% successful category are those who arrange for annual compliance reviews and always have on hand an up-to-date gap analysis of where they stand in relation to quality management and the implementation of cold file reviews.
Quality review outcomes are considered by the Quality Assurance Committee (QAC) (with the exception of UK insolvency quality reviews which are considered by the Insolvency Licensing Committee). Where quality review outcomes are not satisfactory QAC may impose conditions or restrictions on an individual or a firm (or both). Other options can include a range of measures including:
- Monetary fine by way of regulatory penalty;
- Enhanced monitoring via certain regulatory restrictions;
- Licensing conditions imposed by the QAC;
- Quality reviews being repeated more frequently than the required statutory visit cycle; and
- Ongoing outreach (through the PSD Regulatory Bulletin, participation in CPD courses) to all firms providing current information on regulatory matters and common compliance issues.
In extreme cases, QAC may even withdraw a particular licence, registration, or authorisation, (subject, of course, to fair procedure and due process being observed).
Inspections will continue into 2024. It is in every firm’s best interest to avoid receiving an unsatisfactory review. Firms that carry out annual compliance reviews generally get better results on their inspections, so a firm would do well to implement this practice. Your annual compliance review is your firm’s equivalent of an athlete training at the gym to get the best results when they are most needed.
For more on the whole audit quality management (ISQM) process please see our ISQM 1 Toolkit here.
Please go to our website for:
- Our latest CPD Webinar on The Main Changes in Irish GAAP (recorded July 2024)
- Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion you receive a CPD certificate for attendance in your inbox.
- Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
- ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by email at john@jmcc.ie.
- We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. The ISQM TOOLKIT 2022 is available to purchase here.
