Compliance Visits

System

This is just a bit of a "nosey" thread.

What I want to know is how the AAT regulate MIP's. Do they come and visit you and review your work or do they just send out a form for you to fill in.

I'm just interested as we had a recent inspection by the ICAEW and they were quite specific in their requests - just wondered if AAT did the same thing.

Kind regards
Ste

System

Re:Compliance Visits

The AAT do conduct compliance visits for MIPs. I have not been subject to a visit myself but I understand the focus is on checking your systems, procedures and compliance with practice guidelines more than reviewing your technical work.

I am sure if you contacted the AAT they would let you know what was involved in a compliance visit.

System

Re:Compliance Visits

I think that is the same as all the others - they never actually check that you can add up - just that you have the procedures in place.

I have to say that procedures are important, but if you can't properly compile a set of accounts, then you shouldnt be practicing. Maybe it is just taken as understood that you can - but we have all come across seriously bad mistakes from so-called qualifieds :roll:

Claudia

System

Re:Compliance Visits

I am glad Claudia referred to the mistakes made by qualified's.

The reason for my post was that we have recently taken over a client who's previous accountant produced a set of accounts which have substantial and quite catastrophic errors in them. (The previous agent was not AAT).

The net result of the previous agent's errors was a prior period adjustment amounting to approximately £550k! It has taken me about two month's to sort it out.

When we had an ICAEW inspection, they actually reviewed files of ours as well as the review procedures. Luckily we passed.

Thanks for your replies.

Kind regards
Steve

System

Re:Compliance Visits

I often come across errors by previous advisers, regardless of professional background - nothing quite in the league of a £550k ppa though!

If this error was not by an MAAT and you yourself are a practising ACA, why the interest in how the AAT monitors standards?

System

Re:Compliance Visits

Hi Dean,

I'm not a practising ACA - I just work for a firm.

My post was merely out of interest as to how the AAT undertake compliance reviews. I've witnessed the ICAEW's approach which wasn't as much of a headache as tradition makes out it could be. Also, a relative's friend is contemplating going self-employed when she qualifies (she's currently at foundation stage) so I may get asked the question and as I am not self-employed have to rely on you guys to let me have the answers.

Kind regards
Steve

System

Re:Compliance Visits

Does anyone know how the AAT decide who to visit? is it like VAT inspections where they try to see everyone once every 3 years, or are they more likely to come if they suspect you're doing something wrong?
To be honest I'd quite like someone to come & check that all my systems in place are working as they should, I'd rather that than have to find out the hard way that I'm doing something wrong!

System

Re:Compliance Visits

I'm with you on this Jodie - what systems should we have in place? Engagement letters, laundering procedures - what else????

What ideas does anyone else have? What other things do we have/ought we have in place.

Answers on a postcard please.......

Claudia

System

Re:Compliance Visits

do you think they'd be interested in looking at client confidentiality / data protection or things like backing up your work?
I sometimes feel that becoming self employed was such a giant leap into the unknown and for all there's support around I seem to get support in different areas from different places and still feel that there could be a whole area that I've just never thought about, waiting to catch me out when I'm least expecting it!