APES 325 (Risk management for firms)?
APES 325 (Risk management for firms) is a standard set by the Accounting Professional and Ethical Standards Board (APESB) that requires firms to establish and maintain a risk management framework to identify, assess and manage key organisational risks. Accounting firms should document their risk management framework and communicate their policies and procedures to their personnel.
What should be reflected in a risk management framework?
A firm’s risk management framework must include policies and procedures that identify, assess and manage key organisational risks. These include:
- Governance Risks
- Business continuity risks (including succession planning)
- Business Risks
- Financial Risks
- Regulatory Risks
- Technology Risks (including cyber security)
- Human resources Risks
- Stakeholder Risks
How can I prepare an APES 325 Risk Management Framework?
Various online resources from different accounting bodies discuss how to develop a risk management framework. Yet creating a framework remains an onerous task that takes time away from your billable work.
Some online tools offer an APES 325 template. But it’s important to remember this document will only be basic – not detailed or tailored for your accounting practice, or easily updated if circumstances within the practice change.
WHY USE A QUALITY ASSURANCE CONSULTANT?
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Talk to a quality assurance expert
Craig Allen is a former quality assurance reviewer for CPA Australia and has helped more than 500 practices in Australia as a quality assurance consultant or quality assurance reviewer. Craig has a unique perspective, having also been in public practice for more than 30 years. Talk to Craig to find out how he can help your accounting practice get ready for a quality review and attain best-practice standards.