We continuously evaluate the firm's quality control policies and procedures for compliance with professional standards.

Annually, we perform the self-evaluation required by SQMS No. 1 with respect of the time and effort we devote to the operation of my SOQM.

Our monitoring consists of internal inspections and also considers the peer review results triannually.

The purpose of the monitoring is to obtain reasonable assurance of the appropriateness and sufficiency of the designed policies and procedures as the system of quality management as well as the effectiveness of their operation. In performing monitoring activities, we consider the results of previous inspections, the characteristics of our firm, and associated risks.

Inspection

We must cooperate with the individual responsible for our monitoring activity.

On an ongoing basis, we assess the effectiveness of its quality control system and evaluate compliance with the firm’s policies and professional standards. These activities are designed to monitor the quality and obtain reasonable assurance that quality control policies and procedures are being complied with. This procedure includes a review of administrative, personnel, and engagement files.

As part of the engagement monitoring process, we review the higher of 30% of the total count or 1 engagement of each type:

• Audits;
• Compilations:
  • Compilations with substantially all disclosures omitted;
  • Compilation with disclosures.

The professional responsible for the inspection should perform procedures to:

• Assert that elements of the quality management system are designed and operate effectively.
• Conclude that reports issued are appropriate in the circumstances.
• Identify all significant deficiencies.
• Perform the root cause analysis for each deficiency.
• Provide recommended course of actions necessary to address those deficiencies.

An inspection report should be prepared, including:

• Description of procedures performed,
• List of findings,