Reviews

Assuring Quality, Inspiring Trust

Independence

No Audit Clients, No Conflicts – Pure Quality Assurance Focus

Experience

15+ years of proven Quality Assurance experience

24/7 Support

Around-the-Clock Support, Steering You Forward

Reliability

Navigating Challenges with Timely Expertise

Firm Review

A Firm Review evaluates the quality of a practice’s governance, independence, and competence by assessing its control systems, ethical standards, client acceptance procedures, and staff qualifications to promote continuous professional improvement and compliance with regulatory requirements.

Firm Review Governance
Governance

  • Quality control systems and procedures in place

  • Firm governance, ethical policies, and Professional Indemnity Insurance (PII)

  • Implementation of prior review recommendations and corrective actions

Firm Review Acceptance and Independence
Acceptance and Independence

  • Compliance with professional standards and regulations

  • Risk management and client acceptance procedures

  • Independence, confidentiality policies

Firm Review Competence and Performance
Competence and Performance

  • Staff qualifications, training, appraisals and continuing professional education

  • Engagement performance

  • Consultations and professional advice processes

Cold File Review

A Cold File Review offers an objective evaluation of audit documentation, financial statements, and engagement performance conducted after the independent auditor’s report has been issued, ensuring that each aspect complies with professional standards, regulatory requirements, and quality expectations through a retrospective, unbiased assessment.

Cold File Review Audit Documentation
Audit Documentation

  • Adherence to auditing standards and regulatory requirements

  • Proper documentation of audit procedures, findings, and conclusions

  • Review of audit evidence sufficiency and relevance

Cold File Review Financial Statements Review
Financial Statements Review

  • Accuracy and consistency of financial statements

  • Verification of accounting policies and estimates

  • Assessment of disclosures for completeness and compliance

Cold File Review Engagement Performance
Engagement Performance

  • Review of supervisory and review procedures performed

  • Assessment of risk identification and response effectiveness

  • Confirmation of final sign-off and quality control checks

Hot File Review

A Hot File Review is a real-time, independent evaluation of audit documentation and engagement performance that must be completed in accordance with ISQM 2 Engagement Quality Reviews before the audit report is issued, requiring both the reviewer and the engagement partner to agree on the type of audit opinion to be expressed.

Hot File Review Judgments and Documentation
Judgments and Documentation

  • Review significant judgments made by the engagement team

  • Assess completeness and appropriateness of audit working papers

  • Evaluate documentation supporting key audit conclusions

Hot File Review Compliance and Ethical
Compliance and Ethical

  • Confirm independence and ethical requirements met

  • Check engagement team’s consultations on difficult matters

  • Ensure compliance with ISQM 2 requirements for engagement quality reviews

Hot File Review Quality Control and Review
Quality Control and Review

  • Assess engagement partner’s involvement and oversight

  • Identify unresolved issues before final sign-off

  • Ensure review is concluded before audit report date

ISQM Review

An ISQM Review provides a comprehensive evaluation of a firm’s response to ISQM 1 requirements, including the adequacy of its ISQM 1 Policies and Procedures Manual, as well as the effectiveness of its risk assessment, monitoring and remediation activities, and documentation processes to ensure sustained audit quality and compliance with professional standards.

ISQM Review Risk Assessment & Quality Objectives
Risk Assessment & Quality Objectives

  • Evaluate how the firm has responded to ISQM 1 requirements

  • Review the firm’s whole-firm audit risk assessment process

  • Assess quality risks identified and related procedures

ISQM Review Monitoring and Remediation
Monitoring and Remediation

  • Review monitoring activities, including cold file reviews

  • Assess root cause analysis (RCA) processes and outcomes

  • Evaluate remediation plans and effectiveness

ISQM Review Documentation
Documentation

  • Evaluate the ISQM 1 Policies and Procedures Manual

  • Engage in discussions with key staff to gather insights

  • Suggest actionable recommendations for improvement

Regulatory Readiness Review

A Regulatory Readiness Review simulates a mock Quality Assurance regulatory visit inspection to identify deficiencies, assess compliance with regulatory requirements, evaluate gaps in controls and documentation, and provide actionable feedback, ensuring the firm is fully prepared for an upcoming regulatory visit.

Regulatory Readiness Review Purpose and Scope
Purpose and Scope

  • Perform a mock inspection to identify deficiencies before the regulatory visit

  • Scope varies by firm size, past review findings, and specific firm concerns

  • Focus tailored based on previous monitoring outcomes and risk factors

Regulatory Readiness Review Key Review Focus Areas
Key Review Focus Areas

  • Assess compliance with regulatory requirements and firm policies

  • Identify gaps or weaknesses in controls, processes, and documentation

  • Evaluate readiness of documentation and evidence for the regulatory visit

Regulatory Readiness Review Process and Approach
Process and Approach

  • Conduct detailed analysis and testing similar to actual regulatory inspection

  • Provide actionable feedback and recommendations for improvement

  • Engage with firm personnel to clarify issues and understand processes

Restricted Review

A Restricted Review targets high-profile or sensitive audit files, focusing on key risk areas such as fraud, going concern, or related parties depending on the area requested to be reviewed, by evaluating audit procedures and documentation, then delivering tailored recommendations and clarifications to address firm-specific concerns and needs.

Restricted Review Purpose and Scope
Purpose and Scope

  • Target high-profile or sensitive audit files for restricted reviews

  • Address concerns about risk assessment, fraud, going concern, related parties, etc.

  • Tailor review approach to firm-specific needs and risk areas

Restricted Review Key Review Focus Areas
Key Review Focus Areas

  • Evaluate audit procedures related to risk assessment, fraud, going concern, etc.

  • Assess documentation and evidence adequacy on selected files

  • Identify any gaps or weaknesses relevant to restricted reviews

Restricted Review Customisation and Delivery
Customisation and Delivery

  • Customise the scope and depth of the review per client specifications

  • Deliver findings with actionable recommendations for improvement

  • Engage with firm personnel to clarify issues and understand their concerns

Reviews Elevate Your Assurance Experience

Professional – Independent – Passionate

Elevate Your Assurance Experience

Focus on Assurance, Backed by Unmatched Support

Concentrate on delivering effective assurance services with comprehensive support provided throughout every stage of the process.

Precision Today, Trust Tomorrow

Deliver meticulous work now to build lasting credibility and trust in the future.

Quality Assurance: Your Shield of Professional Excellence

Upholding rigorous quality management systems protects your reputation and demonstrates commitment to professional excellence.

Professional – Independent – Passionate

Navigating the Review Journey: What Awaits You

Delivering precision, confidence, and excellence in every engagement — supported by robust quality assurance systems and unwavering commitment to your success.

Opening Meeting

Defining the scope of the review, setting clear objectives, and aligning expectations upfront to ensure an efficient and focused process, with the fee transparently communicated — no surprises.

Sharing your views

Your input during the review is vital because it helps identify areas where the audit process is strong and where improvements can be made, ensuring that the services provided meet your expectations and add real value.

Wrap-Up Meeting

The review is concluded by clearly summarising all key findings, addressing and resolving any outstanding issues, and providing thoughtful recommendations for next steps to support ongoing improvement and sustained development.

Professional – Independent – Passionate

Compass Malta:

Guiding Excellence in Audit and Assurance

Reviews Professional
PROFESSIONAL

  • Demonstrates integrity by adhering to ethical standards and maintaining honesty and accountability in all audit work.

  • Communicates effectively with clarity and respect, ensuring audit findings are well understood and actionable.

  • Consistently applies a systematic and thorough audit methodology to deliver reliable and high-quality results.

Reviews Independent
INDEPENDENT

  • Holds no audit, accounting, or related clients to preserve full independence.

  • Maintains objectivity by avoiding conflicts of interest and external influences, ensuring unbiased judgments.

  • Protects confidentiality and handles sensitive information discreetly.

Reviews Passionate
PASSIONATE

  • Shows genuine commitment to quality and continuous improvement.

  • Engages proactively with auditors, fostering collaboration and constructive feedback.

  • Embraces learning, innovation, and adaptability to keep up with evolving audit standards and technologies.

Professional – Independent – Passionate

Professional Services

Compass Malta provides a range of professional services, including conducting various types of quality reviews, supporting ISQM 1 and ISRE 2400 implementation, delivering in-house CPE training, and offering tailored consultation to statutory auditors and audit firms.

  • Services - Insight-Driven Quality Reviews

    Insight-Driven Quality Reviews

    Compass Malta delivers cold file, engagement quality reviews and firm reviews, strengthening governance, elevating audit quality and demonstrating effective, practical ISQM 1 and regulatory compliance.

  • Reviews Professional Services Future-Ready ISQM 1 Solutions

    Future-Ready ISQM 1 Solutions

    Compass Malta designs risk‑based ISQM 1 systems, continually reviewing, refining and aligning them to evolving risks, embedding vigilance, responsiveness and improvement into daily operations.

  • Reviews Professional Smart Consultation and Expert Advice

    Smart Consultation and Expert Advice

    Compass Malta offers independent technical support and tailored guidance on complex reporting, going concern and ethical matters, strengthening audit quality, confidence and trusted stakeholder relationships.

  • Reviews Professional Personalised In-House CPE Training

    Personalised In-House CPE Training

    Compass Malta delivers customised, cost‑effective in‑house CPE training at your offices, building skills, supporting regulatory change readiness and efficiently meeting ongoing professional education obligations.