Risk management

In order to achieve high quality audits member firms should accept audit engagements only where the audit team is independent, objective and qualified. The risk management advisory committee (RMAC) designs policies and procedures to help member firms make appropriate engagement acceptance/reacceptance decisions. Appropriate assurance engagement decisions contribute to audit quality and are a key element of risk management by member firms in conducting high quality audits.

Managing risk across the global organisation is an integral part of implementing the global strategy. The RMAC is chaired by the executive director – risk and regulatory matters. Membership of the RMAC includes global leaders of practice quality control and independence programmes, risk management leaders from a number of member firms and chief legal counsel for Grant Thornton. The committee makes recommendations regarding risk management policies and procedures to the GLB.

Areas covered by the global risk management policies and procedures include quality control, independence, ethics, member firm client and engagement acceptance and reacceptance, and standard terms between member firms when servicing international engagements. There is an overall focus on continuous improvement in quality of service delivery, procedures to monitor quality and the risk management methodology. Primary responsibility for identifying and managing risks resides with the management of Grant Thornton and partners of the member firms. The RMAC advises management on the identification of risks and corresponding risk management approaches within the scope of responsibilities for Grant Thornton risk management. The responsibility of the risk management function at Grant Thornton is primarily:

• development, communication and maintenance of global policies and procedures designed to: 
• maintain independence and objectivity of professionals within Grant Thornton member firms 
• establish minimum standards for the client acceptance and client continuance activities of member firms
• development of training programmes covering the items referenced above 
• development and maintenance of technology solutions to facilitate the effective and efficient execution of the procedures referenced above 
• monitoring the effectiveness of the design and operation of controls established by Grant Thornton and its member firms to ensure compliance with global policies established by Grant Thornton for the selling and delivery of high quality assurance services by member firms.

Further, it is the primary responsibility of the global assurance function within Grant Thornton to develop, communicate and maintain global policies and procedures regarding the selling and delivery of non-audit services to audit clients.