What are member firms and correspondent firms?
Individual firms can be affiliated to RSM International as either a member firm or a correspondent. There are significant differences between these two different types of firm.
Irrespective of their affiliation type though, each firm is a separate legal, financial and administrative entity, practising under the laws of the country where it is based. Each is locally owned, operated and managed, and responsible for its own liabilities.
Neither member firms nor correspondents are members of one international or legal partnership. No single firm is responsible for the services or activities of any other.
What is a member firm?
A member firm is expected to meet a number of very high standards set by the International Board of Directors of RSM International. These standards relate to the quality and range of their services, as well as to other issues such as their size, location and branding.
In particular, all member firms must:
- comply with the International Federation of Accountants’ (IFAC) Code of Ethics; and
- establish a rigorous internal inspection program that RSM International will periodically oversee or participate in.
In terms of the IFAC Code of Ethics, the member firms of RSM International would be considered to form a network and are therefore required to remain independent of each others’ clients.
RSM International considers these to be important safeguards for the clients of all member firms.
What is a correspondent firm?
By agreement, a firm can enter into a correspondent relationship with RSM International. A correspondent firm serves as a contact for RSM member firms seeking to serve client needs in locations where the RSM International Board of Directors has determined that there is no requirement for a member firm.
Correspondent firms are expected to meet all legal or regulatory standards for the services they provide in their country.
They are not, however, required to meet the standards of a RSM member firm; including the RSM Quality Control and Risk Containment policies, RSM Ethics and Independence policies or RSM training requirements.
Member firms or clients proposing to use the services of a correspondent should therefore exercise appropriate supervision and review procedures before using or relying on the professional services of a correspondent firm.
References on this website
All references on this website to the services of RSM firms specifically relates to the services of member firms only.