Since 2013, CIIPA has been monitoring the observance of auditing standards and the International Standard of Quality Control (ISQC1), within public practice firms. Each firm is visited at least once every three years.
In 2016 the Accountants Law (now Accountants Act (2020 Revision) and the Accountants (Quality Assurance) Regulations (2020 Revision) were enacted and this formalised the quality assurance review system. The Accountants (Amendment) Act, 2022, and two regulations -- The Accountants (Application for Membership) (Amendment) Regulations, 2023; and The Accountants (Disciplinary) (Amendment) Regulations, 2023 --- that support its provisions; and The Accountants (Quality Assurance) (Amendment) Regulations, 2023, came into effect on 1 Feb. 2023.
A Statement of Principle- Auditing Standards was issued in February 2017 and was updated November 2017 (linked).
A help sheet, Guide to Audit Monitoring Visits is available. The Pre-visit Information Form and Declaration referenced in the help sheet can be found here. CIIPA also hosted a firm briefing on the 2017 monitoring providing an overview and additional guidance going forward. The presentation from this meeting can be found here.
As a Member of the International Federation of Accountants (IFAC), CIIPA is committed to compliance with the Membership Obligations, including having a mandatory quality assurance review program in place for members performing audits of financial statements of public interest entities.
The Auditors Oversight Act (AO Act) was passed in the Cayman Islands in 2011. It established the Cayman Auditors Oversight Authority (AOA) as a body corporate, charged with the functions of regulating and supervising auditors who audit the accounts of market traded, specified or designated companies.
This includes subjecting recognised auditors to the Authority’s systems of quality assurance, investigation and penalties. It also provides for the making of Rules by the Oversight Authority and the issue of Regulations.
An MOU between CIIPA and the AOA facilitates cooperation, where the CIIPA and the AOA regimes both apply to public practice firms.
The International Auditing and Assurance Standards Board (IAASB) issued three new and revised quality management standards in 2020 which come into effect 15 December 2022. The IAASB developed this short video from Chair Tom Seidenstein. The IAASB has published a number of resources including fact sheets, implementation plans and informational videos. To learn more and access these resources, visit the IAASB Quality Management page.
CIIPA and ICAEW hosted a briefing session 17 May 2016 on The Accountants Law 2016 and how the law impacts Quality Assurance Reviews going forward. The presentation regarding the law can be found here.
The ICAEW presentation regarding the monitoring visit cycles can be found here.
QARS Stakeholder (Summary) Reports (Second Cycle) 2020 - 2022.
The 2020-2021 summary report can be found here.
QARS Stakeholder (Summary) Reports (Second Cycle) 2017 - 2019.
The 2017 summary report can be found here.
The 2018 summary report can be found here.
The 2019 summary report can be found here.
All CIIPA licensed practitioners are subject to review by means of the Quality Assurance Review System (QARS). The first cycle took place in 2013 – 2015.
The 2015 summary report can be found here.
The 2014 summary report can be found here.
The 2013 summary report can be found here.
Due to a number of challenges and new circumstance brought about in 2020, CIIPA conducted its first Thematic Review of Public Practice Firms. The report from that exercise can be found here.
The CIIPA Quality Committee draws your attention to an international discussion underway in regard to 'Letterbox Audits'.
While this is different from 'multi-firm engagements' (which encompasses 'referral engagements,' 'referred reporting,' 'sign offs,' and 'interoffice engagements'), the discussion is relevant, as the application of standards to 'letterbox audits' should be extended where relevant to multi-firm engagements in the future.
CIIPA strongly encourages member firms to review these materials and the related professional guidance to ensure their current policies and procedures relating to multi-firm engagements are meeting professional requirements.
Here is the IAASB Practice Alert, as well as a related article for your review.