The report shares the most common issues identified during these reviews, many of which are recurring themes from previous years. We therefore recommend that firms read this report (and the pitfalls it highlights) carefully to avoid making similar mistakes. Key reflections are summarised, hints and tips are outlined and useful resources are signposted throughout the document.
Webinar recording
To support firms in understanding the results of the report and what they reflect, Dean Neaves, Senior Manager, ICAEW Quality Assurance Department, headed a webinar to expand on the key findings from the quality assurance monitoring reviews conducted in 2024. Accessing the recording could provide up to 1 hour towards verifiable CPD.
We build our monitoring reports to be key resources for firms. Alongside each finding, we have listed examples of ICAEW resources or other guidance that we recommend firms use to improve compliance in these areas.
2024 monitoring results
- More than 1,450 quality assurance monitoring reviews completed
- Key areas of focus in 2024 included firms’ use of artificial intelligence (AI) and eligibility issues
- At 82% of firms we either raised no matters requiring action or the firm addressed the matters we raised with no need for follow up
Areas of focus in 2024
Each year, we hold detailed discussions with larger firms to explore selected areas of focus in more depth. These conversations include a review of the policies and procedures firms have in place to manage risks in relation to these topics.
Our two key areas of focus for 2024 were:
- eligibility issues (selected as we continue to see developments in the market leading to changes in traditional professional firm structures); and
- the use of AI in accountancy firms.
Eligibility topics
- Structure and control
- Appointment of principals
- Member firm status and use of ‘Chartered Accountants’ description
- Anti-money laundering (AML) supervision
- Changes in your firm record
AI topics
- Awareness and expected impact
- Policies and procedures
- Monitoring and use
- Staff training and guidance
- Use of embedded AI in third-party software
- Benefits of AI
Analysis of findings
The report includes a table where instances of reviews with firms that have at least one finding that relates to non-compliance with regulations are listed. The list is similar to last year and we therefore recommend firms review it carefully, alongside the relevant regulations and the resources identified to ensure they are not making similar mistakes.
Top areas identified include:
- Money Laundering Regulations and Clients’ Money Regulations;
- basis of fees and complaints, and engagement letters;
- ICAEW records and annual returns;
- referrals and commissions;
- eligibility and more.
