Laserfiche WebLink
<br />Planning the Review for the Firm's Accounting and <br />Auditing Practice Applicable to Non-SEC Issuers <br /> <br />To plan the review of Rachlin Cohen & Holtz LLP, we obtained an understanding of (1) the <br />nature and extent of the firm's accounting and auditing practice and (2) the design of the firm's <br />system of quality control sufficient to assess the inherent and control risks implicit in its <br />practice. Inherent risks were assessed by obtaining an understanding of the firm's practice, <br />such as the industries of its clients and other factors of complexity in serving those clients, and <br />the organization of firm's personnel into practice units. Control risks were assessed by <br />obtaining an understanding of the design of the firm's system of quality control, including its <br />audit methodology, and monitoring procedures. Assessing control risk is the process of <br />evaluating the effectiveness of the reviewed firm's quality control system in preventing the <br />performance of engagements that do not comply with professional standards. <br /> <br />Performing the Review for the Firm's Accounting and <br />Auditing Practice Applicable to Non-SEC Issuers <br /> <br />Based on our assessment of the combined level of inherent and control risks, we identified <br />practice units and selected engagements within those units to test for compliance with the <br />firm's quality control system. The engagements selected for review included engagements <br />performed under Government Auditing Standards and audits of employee benefit plans. The <br />engagements we selected for review represented a cross-section of the firm's accounting and <br />auditing practice, with emphasis on higher-risk engagements. The engagement reviews <br />included examining working paper files and reports and interviewing engagement personnel. <br /> <br />The scope of the peer review also included examining selected administrative and personnel <br />files to determine compliance with the firm's policies and procedures for the elements of quality <br />control pertaining to independence, integrity and objectivity, personnel management and <br />acceptance and continuance of clients and engagements. Prior to concluding the review, we <br />reassessed the adequacy of the scope of the review and conducted an exit conference with firm <br />management to discuss our findings and recommendations. <br /> <br />3 <br />