Mercia

1. General

1.1 Our peer review service incorporates a wide range of reviews, which include:

• Audit compliance review
• Cold file review
• Individual cold file review (in house)
• Hot file review
• Practice Assurance review
• Investment business review
• Tailor-made client specific reviews which can include training.

2. Contact details

2.1 All enquiries in respect of our peer review service should be directed to Dawn Hollies, Mercia Group Ltd, 0116 2581200.

2.2 Should you wish to discuss a technical matter in respect of a review, Dawn will transfer you to one of our reviewers.

3 Arranging a review

3.1 Please contact Dawn Hollies Mercia Group Ltd, 0116 2581200 to arrange a review.

3.2 In order to arrange a review we will require the following information:

• Firm name, address and contact details
• The type of review required
• The number of locations to visit (where applicable)
• The number of files to review
• The nature of any specialist files to review (eg. charities, pension schemes, solicitors etc.)
• An approximate preferred date for the review
• Whether the firm uses electronic audit software
• Whether your firm is a member of Mercia Group Ltd or uses the Mercia Group Ltd audit manual
• Whether your firm is a member of the Bluefin insurance scheme
• Whether your firm uses a proprietary audit system or has recently switched systems
• Any special requirements for the review (eg. comments and conclusions based upon a previous review by the QAD or ACCA Monitoring Unit). We will need to see a copy of the report and any special instructions from your regulator.

3.3 If you have not had a previous review from Mercia Group Ltd we will need to conduct a customer due diligence check before we can arrange the review. To carry this out we will contact you to go through a number of questions.

3.4 The detailed terms and conditions of the review will be set out in an engagement letter. We will send you two copies of our signed engagement letter. One copy should be signed and returned to us prior to the review.

3.5 Where the review involves a visit to your offices, we will contact you as soon as possible after your initial enquiry with possible dates for the review.

3.6 Once a date has been agreed we will send you a confirmation letter, confirming the following:

• The name of the reviewer(s)
• The date(s) of the review
• The type(s) of review and the number of files to be reviewed (including any specialist files)
• The cost of the review and an indication of any travelling and accommodation expenses.

3.7 Where the review involves files being sent to our offices (postal reviews), we will not send a confirmation letter. Instead, we will inform you by email of the date by which the files should reach our office.

4 The review process (for visits to firm’s offices)

4.1 Shortly before the review, the reviewer will contact you to confirm the final arrangements. This will normally involve confirmation of:

• Whether the reviewer or the firm will be selecting the files for review
• Where the reviewer is selecting the files, whether this will be done in advance or on the day of the review
• Whether any files for locations not visited need to be transferred to the location of the review
• The expected time of arrival.

4.2 On the day of the review, the reviewer will initially outline the review process and discuss any particular requirements of the review.

4.3 Once the file review is complete, the reviewer will discuss the key findings and provide an indication of the grades of the files that have been cold reviewed. We do not grade hot file reviews.

4.4 Our reviewers grade cold reviewed files from A to E. A copy of the grading structure will be included in the final report.

5 The review process (for postal reviews)

5.1 Once the file has been received, we will confirm safe receipt and indicate the likely date of return.

5.2 Once the file has been reviewed, the reviewer will telephone you to discuss the main findings of the report.

6 The report

6.1 We aim to issue the final report within two weeks of the review. However, we retain the right to extend this period without prior notice.

6.2 Should we extend the period in which the report is issued, we will inform you of the delay and will provide an indication of when the report may be expected. Advance, draft PDF copies of the report can be emailed on request.

6.3 Our final report will be issued as an emailed PDF file and an invoice for the service will be issued.

7 Confidentiality

7.1 All information obtained during the course of the review, together with the final report, will be treated as strictly private and confidential.

7.2 The report is prepared for the internal use of the firm and its employees. It should not be disclosed to any third party apart from regulation compliance officers without our prior written consent.

8 Disclaimer

8.1 In view of the limited amount of detailed review, the report should not be relied upon to identify all weaknesses that exist within the firm's audit and other regulatory procedures. However, it should identify the main problem areas in the files reviewed and therefore enable standards to be improved as necessary.

9 Complaints

9.1 If you are not satisfied with the service that you have received you may either contact the reviewer or contact Jane Everingham, Managing Director, Mercia Group Ltd.