Quality control systems for non-audit services

Ian Evans
Global leader - tax services
Grant Thornton International

Find out more here about quality control systems for:

Tax services
Specialist advisory services (SAS)
Specialist advisory services authorisation

Tax services
The global leader – tax services directs a central team, the responsibilities of which include reviewing the quality of service provided by member firms and training in international tax matters. He chairs the tax advisory committee (TAC), the members of which include the heads of tax of the major firms providing tax services. The TAC members are responsible for providing input to the tax services strategy, polices and procedures.

The global leader – tax services is assisted by an executive director – tax operations and an executive director – tax training and quality who is responsible for the design and delivery of a programme of international tax training and the introduction of a global tax services manual. The two executive directors share responsibility for the design and running of a periodic review programme of tax services by member firms.

The responsibility for matters of policy in relation to the quality of tax services rests with the executive director - training and quality who reports to the global leader - tax services.

During 2008 Grant Thornton introduced a tax services manual containing overarching principles that member firms are encouraged to apply. Its scope extends to legislative, regulatory, ethical and professional requirements applicable to the delivery of tax services in each member firm's territory. The principles apply to both domestic and cross-border matters. Adherence to these principles is monitored through the periodic review of each member firm undertaken in the Grant Thornton Tax Review programme (GTTR).

The executive director – tax operations is responsible for running the programme so that every member firm is reviewed over a four-year cycle. In carrying out a GTTR the extent to which a member firm carries out its own quality assurance review will determine the scope of the review undertaken by the Grant Thornton team.
Back to top

Specialist advisory services (SAS)
The global leader – specialist advisory services chairs an advisory group, the SAS committee, which comprises SAS service line representatives from the larger member firms. The committee members are responsible for providing input to the SAS strategy, policies and procedures. The executive director – SAS risk management sits on the SAS committee and is responsible for the design and delivery of appropriate risk management and quality control measures for SAS authorisation of member firms. Detailed technical quality control of services within individual service lines is the responsibility of the global head for that service line in conjunction with the executive director – SAS risk management, including authorisation of member firms to provide certain services.

A list of the key risks for specialist advisory services is provided to all authorised member firms so that they can benchmark their policies and procedures. In addition, a specialist advisory services manual (the SAS manual) is made available to authorised member firms as a resource for documenting their approach to risk management. The SAS manual covers general risk management procedures for all specialist advisory services and also includes specific service line risk management procedures and guidance on conducting assignments. Member firms can edit this manual to reflect the local requirements of their own jurisdiction. The SAS manual is updated on an annual basis and interim policies, if required, are issued in SAS alerts which are then incorporated in the next update to the SAS manual.

Back to top

Specialist advisory services authorisation
An authorisation process for specialist advisory services is in place to support the development of high quality services on a global basis across the organisation. This authorisation process sets out a number of requirements relating to risk management and quality control that support the delivery of these services by member firms including requirements that authorised firms:

• have written risk management procedures that comply with requirements set by Grant Thornton;
• regularly review compliance with those procedures;
• provide appropriate training to personnel involved in specialist advisory services.

Member firms that seek authorisation for the first time are subjected to an initial review and support visit to assist them in meeting the authorisation requirements and assess their ability to deliver services. All authorised firms are then subject to a periodic review, at least once every three years, to review compliance with authorisation requirements. Action plans are developed and monitored as part of this review process.

Authorised member firms are encouraged to implement an internal quality assurance review programme to review compliance with risk management procedures. Grant Thornton has designed a work programme for such internal quality reviews that sets out the minimum requirements and gives guidance, including who should carry out the review (for example, an independent but experienced partner) and how often (for example, the work of each partner should be reviewed at least once every three years).

Back to top