Select a statement to learn more:
Explanation
Principals are responsible for establishing and sustaining a formal, well-structured training program that supports the development of staff through mentoring, guidance, and feedback. They must also actively maintain and monitor this training environment to ensure it remains effective, up to date, and responsive to professional and regulatory requirements.
Questions
- Does the firm have a formal, structured training program in place for new hires and existing staff? Please describe its components.
- In what ways do principals create a supportive environment for staff during training, such as mentoring, coaching, or providing feedback?
- Please provide details of the formal appraisal process for principals (eg, frequency, identifying development needs, documentation of the process, etc).
- How do principals ensure that the training program is actively maintained and kept up to date with regulatory, technical, and professional standards?
- What methods do principals use to monitor and evaluate the effectiveness of the training program (eg, assessments, feedback surveys, performance reviews)?
- Can you provide specific examples from the past 12 months showing how principals have reinforced or improved the training and development of staff?
Explanation
Approved Employers need to set members’ objectives, if required, and document these as part of a performance review. Members must be clear on what they are expected to deliver in their role.
Questions
- How do you ensure that developmental discussions are tailored to individuals’ needs and the specific requirements of the Audit Qualification?
- What is the process for discussing Audit Qualification aspirations with individuals and setting the necessary objectives, including ensuring that the individual has met the necessary educational requirements (passing the relevant examinations) and completed the required period of practical training (and that the relevant requirements for Statutory and Other audit hours are met)?
Evidence examples
- Documented policy or other document explaining the company’s approach to how members and or trainees training towards the Audit Qualification have their objectives and experience reviewed.
- Documented discussions or evidenced reviews of the Audit Qualification Experience Form (AQEF).
Explanation
As an Approved Employer you need to be able to verify that members are provided with the opportunity to undertake activities that meet the ACCA audit qualification requirements. You need to be able to clearly demonstrate that you have the people and processes in place that allow a member to work towards achieving an ACCA audit qualification.
Questions
- How many audit clients does the firm have and across which sectors?
- How many hours are spent auditing approximately every year?
- Does the firm have any specialisms?
- Where the firm has audit clients that would meet the ACCA definition of ‘Other Audit,’ what procedures are in place to ensure that trainees/members training towards the Audit Qualification gain sufficient experience to meet the minimum Statutory Audit hours required?
- What procedures are in place to ensure that any trainees/members training towards the Audit Qualification gain sufficient experience across a range of audits to be able to demonstrate sufficient experience to meet the behaviours’ required under each unit of the AQEF?
- How are trainees/members supported to develop and expand their audit experience?
- Are trainees/members given regular feedback on specific areas of audit work they have performed?
Evidence examples
- Documented policy or other document explaining the company’s approach to how members and or trainees training towards the Audit Qualification gain experience across a range of audit areas (such as a competencies framework).
- On the job feedback forms.
Explanation
As an Approved Employer, you need to be able to demonstrate that where trainees and/or members are training towards an ACCA audit qualification, their objectives are formally reviewed every six months.
Questions
- How are trainees/members made aware of the requirements for training towards the Audit Qualification, and when they plan to start to complete their AQEF, what support and procedures are in place?
- How is experience reviewed to ensure that any trainee/member can gain sufficient experience across a range of behaviours?
- In day-to-day work life, how are teams structured to be able to provide a supportive environment?
Evidence examples
- Documented policy or other document explaining the company’s approach to how members and or trainees training towards the Audit Qualification have their objectives and experience reviewed.
- Documented discussions of objectives and experience/or evidenced reviews of the AQEF.
- Organisational chart to demonstrate level of supervision and development.
Explanation
As an Approved Employer you need to be able to verify that trainees and/or members are provided with the opportunity to undertake activities that meet the ACCA audit qualification requirements. You need to evaluate the practical experience that has been achieved and identify further development opportunities in areas where practical experience is still not sufficient.
Explanation
As an Approved Employer you need to be able to demonstrate that where trainees and/or members are training towards an ACCA audit qualification, their experience is reviewed every six months.
Questions
- How does the firm ensure that trainees/members are aware of the requirements to train towards and apply for the AQ, and the required behaviours/experience needed?
- What procedures are in place to ensure that individuals make their intentions clear, and can request a timely review of their objectives, or a review of their AQEF?
Explanation
A principal is defined as an appropriately qualified member of a professional body who has overall responsibility for supervising the training individuals towards ACCA’s audit qualification and acts as guarantor to ACCA that individuals have reached the required standards.
Questions
- How does the firm ensure that Principals and Supervisors are aware of the requirements to train towards and apply for the AQ, and the required behaviours/experience needed?
- How do Principals/Supervisors ensure that they remain suitably qualified to act, and that their audit knowledge is current and constantly updated?
- Are Principals/Supervisors appraised or do they have targets and objectives set as part of ISQM procedures (such as satisfactory hot/cold file review outcomes)?
Evidence examples
- Evidence of Principal and authorised supervisors’ oversight of individuals’ development.
- Evidence that Principals and authorised supervisors are appropriately qualified and aware of the Audit Qualification requirements.
- Evidence of updated relevant CPD.
Information about authorised supervisors
A principal may delegate to an authorised supervisor the review of members’ practical experience. The authorised supervisor is a qualified member of a professional accountancy body but does not need to hold an ACCA practising certificate or be a practising member of any other professional accountancy body which is recognised for audit purposes.
However, the principal must ensure that the authorised supervisor has the necessary qualifications and experience. The authorised supervisor must be a senior staff member in the organisation, have knowledge of the individual’s work and the training undertaken.
Additional notes for Audit Development stream
Principal
A principal is defined as an appropriately qualified member of a professional accountancy body who has overall responsibility for supervising the training of individuals towards ACCA’s audit qualification and acts as guarantor to ACCA that individuals have reached the required standards.
Eligibility to act as a principal depends on the type of qualification, and the territory in which the qualification is valid.
| Audit qualification valid in | Eligible principal |
|---|---|
| UK (including Jersey, Guernsey and the Isle of Man) | A member of ACCA who holds an ACCA audit qualification and ACCA practising certificate OR A fully qualified company auditor under the Companies Act 2006 (United Kingdom) who holds an appropriate practising certificate with a recognised supervisory body OR A company auditor practising in an EEA state, ie any EU member state or one of the following: Iceland, Liechtenstein, Norway or Gibraltar |
| Republic of Ireland | A member of ACCA who holds an ACCA audit qualification and practising certificate OR A fully qualified company auditor under the Companies Act 2014 (Republic of Ireland) who holds an appropriate practising certificate with a recognised accountancy body OR A company auditor practising in an EEA state, ie any EU member state or one of the following: Iceland, Liechtenstein, Norway or Gibraltar |
| South Africa | A fully qualified and registered company auditor under the law of the Republic of South Africa who practises as an auditor in the country |
| Zimbabwe | A fully qualified company auditor under the law of Zimbabwe who practises as an auditor in the country |
Note: these requirements differ for Zimbabwe. Please see Zimbabwe audit qualification for more details.