The IRBA Inspections Department issues annually a public inspections report that provides an analysis of key finding arising from inspections performed during a particular year.

Leadership and those delegated to manage quality management in the firm should at all times remain up to date on the inspections process and any possible reportable deficiencies.

The next step in the Quality Management Implementation journey is for firms, and firm leadership in particular to ensure that all deficiencies identified and reported on during a firm or an engagement file inspection are promptly addressed throughout the entire firm.

It is therefore expected that where improvements are required, these are promptly addressed by all engagement teams across the firm, on all audits.

Therefore, firms are strongly encouraged to pay close attention to the analysis of the IRBA findings to ensure that they are able to implement processes and controls that address these deficiencies in a sustainable manner.

The IRBA uses the results of the inspection findings to monitor the efforts of the firms and registered auditors to improve the rate of inspection findings over time.

During the 8th Inspections Cycle, there will be a continued focus on firm leadership, which is ultimately responsible for promoting a culture of quality that ensures consistent, sustainable high quality on all audits within the firm, including a responsibility that any reported quality control review or inspection reportable deficiencies are promptly evaluated, internally communicated and remediated, as part of the firm’s ongoing quality improvement processes.

Please join me for a webinar session to explain to you in a very practical manner the findings identified by the IRBA, the reason for the findings and the processes that could be implemented by your firm to address these possible deficiencies.

The session also provides you with an opportunity to update your firm’s risk register by identifying and documenting additional quality risks and responses to these risks.

IRBA mandate and inspection process
Inspection approach
Types of reports
Reportable findings
o At firm level
o At engagement level
Most common reasons for findings
Measures to address deficiencies
Role of information technology
What to expect during the 8th Inspections Cycle
o Comprehensive stakeholder engagement
o Guided proactive monitoring of remediation initiative
o Theme-based inspections
o Enhanced BI process
o Enhanced reporting
Monitoring of the firms implementation of ISQM1 and ISQM2