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A message from the Global Leader, Quality & Risk
2021 saw the continued development of new ways of working that may have seemed temporary during the early days of the pandemic, but which are increasingly becoming permanent as the business environment is transformed. Despite the many challenges that this transformation has provided, RSM remains committed to quality across all of our service lines. Quality is the foundation of the RSM Network and a common foundation across all RSM Member Firms. RSM continues to focus on ensuring Member Firms have the common methods and processes required for the ongoing enhancement of the quality of the services they deliver.
Development of RSM Orb
RSM Orb, RSM’s Optimal Risk-Based audit solution, which is translated into several languages, supports RSM Member Firms in delivering a consistently high standard of auditing and is critical in delivering The Power of Being Understood. Member Firms use a consistent core audit methodology, software and tools which can be adapted for local regulatory requirements. In 2021, to further enhance quality, several improvements were made to RSM Orb based on feedback from users, most notably, the development of a solution for ‘Micro’ and ‘Dormant’ entities. This enables RSM auditors to perform quality audits by focusing directly on the requirements of International Standards on Auditing that are relevant to these entities.
A new Independence system
Being independent is fundamental to RSM’s ability to act as trusted business advisers. RSM has invested in the development of RSM InTrust, a new integrated global independence, entity management and service authorisation system for the RSM Network, phase one of which will go-live in April 2022. RSM InTrust is a response to the increasing regulatory requirements and will enhance RSM’s global independence processes. Its entity management and service authorisation modules will enable timely and informed data-driven decisions by using intelligent technology and automation. Ultimately, it will assist RSM’s client service teams in identifying potential independence issues, in responding accordingly and in moving forwards with confidence.
RSM believes that the ISQMs are the basis for continuing the transformation of audit quality in the profession, and both the RSM Global Executive Office and Member Firms have been preparing for the implementation of these new standards on 15 December 2022. This poses a considerable challenge for assurance firms, and the RSM Global Executive Office has provided tools and training to assist RSM Member Firms with their implementation process. These activities will continue throughout 2022 as we approach the implementation date.
Inspections
The ongoing pandemic meant that, for a second year, all Member Firm and global inspections were successfully carried out remotely. We continue to evaluate the structure and content of the Member Firm and Global inspection programmes, particularly in the light of the forthcoming implementation of ISQM 1.
Training
In 2021 we continued the development of RSM’s Quality Curriculum, which is accessed through the global intranet and is hosted on RSM’s global learning management system. Training on ISQM 1, Independence, IFRS, Inspections and RSM Orb were added to the Quality Curriculum during the year.
Technology
RSM’s globally available, secure, file-sharing client portal, which complements similar portals already in place in some Member Firms, was widely used following its introduction in 2020 and is transforming the way in which Member Firms interact with their clients. Several Member Firms are also piloting the use of client data acquisition scripts, which streamline the gathering of financial information from an individual client’s general ledger across a significant number of ERP providers. As we look to the future, RSM is in the process of evaluating and piloting a number of potential global data analytics solutions, some of which are already being used by individual Member Firms. With the business environment becoming increasingly complex, having data analytics solutions that are suitable for use across the full range of middle market clients will be key in providing a dynamic and responsive audit of the future.
The audit profession is undergoing significant transformation as a result of the implementation of the ISQMs, new ways of working, increasing regulatory pressures and the expectations for innovative digital solutions. RSM is responding to the transformation of our profession in purposeful and forward-thinking ways, while continuing to enhance the resources and tools that it provides to Member Firms as part of the organisation’s never-ending pursuit of quality. With all the initiatives that we have undertaken in 2021, some of which are continuing into 2022, I am confident in RSM’s continued ability to perform high quality work for clients.
Marion Hannon
Global Leader, Quality & Risk
