A high-quality ongoing monitoring review helps your firm grow.
Our monitoring services are tailored and structured to strengthen audit quality from firm-wide governance to day-to-day engagement execution.
Navigating HKSQM 1 Monitoring Requirements
Why is an independent external monitoring review important to your firm?
Under the Hong Kong Standard on Quality Management (HKSQM) 1, CPA practices are mandated to design, implement, and operate a robust monitoring and remediation process. This process has to provide a definitive basis for the firm to evaluate whether its System of Quality Management (SoQM) is designed appropriately and operating effectively and whether engagement teams are fulfilling their responsibilities in accordance with all professional standards and applicable legal and regulatory requirements. This includes:
Ongoing Policy Monitoring (OPM) Review
An OPM review assesses the design, implementation, and operation of the firm's overarching system of quality management over a specified cycle (typically annual).
Completed File Monitoring (CFM) Review
While the OPM evaluates the system, the CFM review evaluates the execution. HKSQM 1 requires that a CFM review be conducted on an audit or assurance engagement for each engagement partner on a cyclical basis
What AWG Advisory offers?
AWG Advisory offers independent external monitoring reviews, providing objective evaluations of both firm-wide policies and individual completed audit engagements. Our role is to support your firm in maintaining audit quality and addressing areas for improvement. After the review, AWG Advisory provides practical recommendations and partners with your firm to develop actionable remediation steps.
Our external monitoring review includes, but is not limited to,
OPM Review
Evaluate the design of your firm’s SoQM in accordance with the applicable regulatory requirements and assess your firm’s adherence to its own documented policies;
Assess your firm’s AML/CTF compliance with the latest regulatory guidelines; and
Evaluate the appropriateness of your firm’s root-cause analysis and the effectiveness of the design and implementation of your firm’s remediation plans in addressing previously identified deficiencies.
CFM Review
Examines selected completed audit and/or assurance engagements to identify any significant non-compliance with auditing and accounting standards, recurring deficiencies, and areas for improvement.