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PFP PRACTICE QUALITY CONTROL
This checklist for personal financial planning practices, developed by a task force of the American Institute of CPAs PFP executive committee, is a nonauthoritative practice aid to help CPAs evaluate their financial planning activities. The questions are not intended to represent minimum requirements and are not all-inclusive. A "no" answer should prompt a planner to give additional consideration to his or her current procedures.
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1. Do you use checklists to ensure that all aspects of a PFP engagement are considered (for example, insurance, retirement and budgeting)? | ![]() | ![]() | ![]() | ||
2. Do you outline the scope of the engagement and confirm the client's understanding of the engagement and of when it will be considered complete? | ![]() | ![]() | ![]() | ||
3. When developing a basis for recommendations, do you | |||||
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4. Do you integrate recommendations developed to achieve one financial planning goal with those developed to meet other goals? | ![]() | ![]() | ![]() | ||
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5. Do you understand the planning software you use, the concepts underlying it and what the software does? | ![]() | ![]() | ![]() | ||
6. Do you review the software's output for reasonableness and relevance to the engagement objectives? | ![]() | ![]() | ![]() | ||
7. Do you use a software-generated recommendation only when you understand and agree with it? | ![]() | ![]() | ![]() | ||
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8. If you do not provide a service needed to complete an engagement, do you restrict the scope of the engagement and recommend the client engage another adviser who provides that service? | ![]() | ![]() | ![]() | ||
9. When recommending another adviser, do you communicate to the client-in writing-the nature of the work to be performed by that adviser and the extent, if any, to which you will evaluate his or her work? | ![]() | ![]() | ![]() | ||
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10. When engaged to participate in the product selection and acquisition process (including insurance and investments), do you gather data that provide a reasonable basis for determining whether the alternatives meet established selection criteria? | ![]() | ![]() | ![]() | ||
11. If engaged to establish product selection criteria, do you identify the attributes or other specifications required to accomplish the client's objectives? | ![]() | ![]() | ![]() | ||
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12. In determining a client's progress toward achieving established financial planning goals, do you | |||||
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13. Do you and the client agree on how frequently progress toward his or her financial planning goals should be monitored? | ![]() | ![]() | ![]() | ||
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14. Do you determine whether all criteria and assumptions used as a basis for existing financial planning recommendations are still valid before developing revised recommendations? | ![]() | ![]() | ![]() | ||
15. Do you consider the integrated nature of financial planning and the effect of revising recommendations to achieve one goal on the client's ability to achieve all other goals? | ![]() | ![]() | ![]() |
Adapted from Personal Financial Planning Practice Quality Control Checklist . Copyright 1997 by the American Institute of CPAs.