A New System of Quality Management presentation. Standards and guidance. Audit and assurance. Quality control.

A New System of Quality Management

June 8, 2023

As you likely know, the landscape is evolving around accounting and assurance standards. In recent years, there’s been an increased regulatory focus and the accounting industry as a whole is being held to a higher standard.

At DMCL, we’re regulated by three oversight bodies:

  1. CPABC – CPABC is the Chartered Professional Accountants of British Columbia. CPABC is the training, governing and regulatory body for over 39,000 CPA members and 6,000 CPA candidates.
  2. CPAB – CPAB is the Canadian Public Accountability Board. CPAB oversees public accounting firms that audit Canadian reporting issuers (publicly traded companies).
  3. PCAOB – PCAOB is the Public Accounting Oversight Board (United States). PCAOB oversees the audits of US public companies and other SEC issuers.

CPABC, CPAB and PCAOB all review our work to ensure we’re meeting the expectations put forward for the industry. We also work together with these oversight bodies to identify opportunities for improvement and growth in response to evolving accounting and assurance standards.

With the advent of tools such as artificial intelligence (AI) and emerging industries challenging the status quo, we’re constantly adapting and enhancing our approach to ensure we’re aligned with Canadian and global developments impacting the public accounting profession.

As accounting and assurance standards continue to evolve, we’re excited to share our own vision for the future.

Standards and Guidance Additional Resources

Over the past year, DMCL has invested significantly to enhance and maintain audit quality, including drawing on additional resources with necessary experience and skillsets. Our vision is not only to achieve, but to exceed current standards by dedicating a resource to keeping DMCL ahead of the curve when it comes to accounting and assurance standards.

System of Quality Management (SOQM)

Over the past year, DMCL has worked tirelessly to implement a new system of quality management (“SOQM”) with significant enhancements made to our existing systems and processes to align with the new global quality standards. With a modernized SOQM, DMCL has the foundations in place to deliver exceptional work on every client engagement and can dedicate more time to staying ahead of evolving standards.

Resource Planning Process

Setting, communicating and delivering on expectations is key to a successful client relationship. For this reason, we continue to enhance our resource planning processes. To support our overall commitment to audit quality, we’ve enhanced our client acceptance and continuance process, revamped our communications protocols and invested in improved budgeting and scheduling tools. Every client engagement has unique challenges; however, the enhancements we’re making to our resource planning processes will ensure that we put ourselves in a position to deliver each client engagement on time without compromising quality.

Performance Management Program

Hand-in-hand with our SOQM and resource management process, we’ve designed an entirely new approach to performance management. In addition to a day-to-day supervisor, each quarter, our staff meet with an assigned performance manager to discuss the progress they’re making towards their goals and to identify new growth opportunities. By strategically pairing staff with performance managers outside of their core team, we’re able to reinforce a singular approach to our accounting and assurance standards and provide staff with new mentorship opportunities. Our vision is to provide staff and partners with the support and mentorship they need to grow in their careers and deliver excellence in their work.

Continued Professional Development

In support of the above initiatives, we’ve invested significantly in learning and continuous development to focus on new developments impacting the public accounting professional including auditing, accounting and professional standards. There’s an increased commitment to develop our staff and partner skillset through ongoing and real-time training to achieve consistencies in application of requirements. We seek to deliver value through innovation and leadership and, are committed to continuous learning and an imaginative spirit that anticipates and enables change.

Technology

Last, but not least, we continue to explore opportunities to invest in new audit technologies. We believe in embracing new technologies—working smarter, not harder—to provide our clients with top-notch services. By integrating new technologies into our audits, our team will be empowered to provide greater insights and identify more opportunities to help our clients achieve their goals.

We acknowledge the evolving landscape of accounting and assurance standards and are committed to staying ahead of the curve. By implementing a robust SOQM to support both the Firm and the engagement teams, we’re confident in our ability to meet and exceed industry expectations. With the advent of artificial intelligence and emerging industries, we remain vigilant in evolving our practices to align with accounting standards and look forward to sharing more with you in the future.

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