Launched in 2018, this series of seminars on practice management aims to help practitioners from small and medium practices (”SMPs”) better prepare for the challenges and opportunities ahead, adapt to changes, improve their management and operational efficiency, as well as to support their sustainability and future success.
Risk Management (SCPD19120501)
Risk management is important to CPA firms in terms of protecting their assets, finances and operations and contributing to their legal compliance, corporate governance and due diligence. Consequently, risk management will protect the reputation, credibility and status of CPA firms. The issue of risk and risk management has increased in importance as the number and size of legal claims against CPA firms has increased over the years.
CPA firms should establish a risk management culture, emphasizing at all levels of the firms the importance of managing risk as part of each staff member’s daily activities at all levels of the firms. The goal of creating a risk management culture is to create a situation where partners and staff instinctively look for risks and consider their impacts when making effective operational decisions.
This module will cover the following key component parts of establishing a risk management culture of CPA firms:
• Leadership role
• Ethical issues and their impact on risk exposure
• Client engagement process and engagement letters
• Quality control processes
• Professional liability mitigation, and professional indemnity insurance