Driving quality improvement – Setting the right tone at the top for performing an effective root cause analysis and remediation

The Accounting and Financial Reporting Council (AFRC) has released the report “Inspection Insights – Root Cause Analysis and Remediation: A Call to Action for Quality Improvement.” The report highlights the importance of effective root cause analysis (RCA) and remediation in addressing audit deficiencies and fostering continuous quality improvement among PIE and non-PIE auditors. It emphasizes proactive leadership, resource allocation, and comprehensive corrective plans as key factors for success. The report also shares best practices, including effective training, independent oversight, and transparent stakeholder communication. AFRC leaders urged firms to prioritize audit quality, stating that strong remediation efforts are crucial for trust, talent retention, and the sustainable growth of the accounting profession.

Resources: https://www.afrc.org.hk/en-hk/news-centre/news/driving-quality-improvement-setting-the-right-tone-at-the-top-for-performing-an-effective-root-cause-analysis-and-remediation/