Quality control tests whether routines work in practice

Controllers carrying out Regnskap Norge's quality controls look for one thing above all: a visible thread running from risk through routines to execution, documentation and improvement.Regnskapnorge Good routine descriptions are not enough. The firm must show that the routines fit its own business and are actually used in the individual engagements.Regnskapnorge

The control has two levels.Regnskapnorge At firm level the controller assesses how the business is organised and managed — whether responsibilities, capacity, competence, risk management and quality management support sound operations.Regnskapnorge At engagement level the controller examines whether the work was performed soundly, in line with the agreement with the client and in line with the regulations.Regnskapnorge What decides the outcome is the connection between the twoRegnskapnorge: extensive routines count for little where the traces in the engagements do not show them in use.

Risk assessments must describe the actual business, not read as generic documents that could belong to any accounting firm.Regnskapnorge Identified risk must have consequences for routines, control measures and follow-up.Regnskapnorge That applies to anti-money-laundering compliance as wellRegnskapnorge: the firm must show how its own and its clients' risk was assessed, how the risk classification is reasoned, and which client measures and follow-up were carried out.Regnskapnorge Where risk is higher, the trail must lead on to reinforced measures and closer follow-up.Regnskapnorge Typical weaknesses are assessments that are too generic, standardised routines, thin reasoning, and follow-up that was done but not documentedRegnskapnorge — each breaks the thread between risk, routines and practice.Regnskapnorge

A standard template can be a starting point, but the quality management system must be adapted to the firm's services, risk and way of working.Regnskapnorge Routines must be known, used and shaped so that they support sound engagement performance. The control also covers how the firm supervises the engagement-responsible accountants: there must be a systematic, risk-based supervision setup showing what was supervised, why those areas were chosen, what the supervision found and how findings were followed up.Regnskapnorge The aim is not identical checks for everyone but relevant checks where risk and need are greatest.Regnskapnorge The system itself must be evaluated, with weaknesses and improvement needs captured and acted on so that it stays alive over time.Regnskapnorge

Engagement responsibility must be visible throughout the engagement: planning adapted to the client and the risk, follow-up of the accountant's own and colleagues' work, and quality assurance carried out and documented.Regnskapnorge The involvement need not sit in one particular form; the controller follows the traces through the business understanding, the assessment of the client's routines, planning, follow-up, quality assurance and the handling of deviations. Where others perform parts of the bookkeeping, the division of work, competence, communication and control measures must also have been assessed.

The business understanding must give a genuine picture of each clientRegnskapnorge — purpose and activity are not enough; relevant conditions in the business must be identified and assessedRegnskapnorge, and the client's internal routines mapped and weighed for their significance to the engagement. Where assessments uncover risk or weaknesses, that must show in the planning, quality assurance and follow-up.Regnskapnorge There is no single measure that is always right, but there must be a clear connection between the assessments made and what is actually done.Regnskapnorge

The arrangement is Regnskap Norges kvalitetskontrollRegnskapnorge, carried out by state-authorised accountants with practical industry experienceRegnskapnorge as part of Finanstilsynet's supervision under binding guidelines on scope, planning and reportingRegnskapnorge, with the purpose that business is run soundly and in accordance with regnskapsførerloven, god regnskapsføringsskikk and other relevant regulations.Regnskapnorge