Critiques (WIR Method)

Enabling Competencies

• Solving problems and making decisions
• Communicating
• Adding value

Learning Outcomes

• Describe the WIR method used for performing critiques.
• Describe the three steps of the WIR method used for performing critiques.
• Apply the WIR method used for performing critiques to a scenario.

Critiques and WIR Method

• Critiques can apply to many elements of cases, such as:
  • An organization’s internal controls
  • An organization’s governance structure
  • A proposed contract
  • An audit junior’s work
• The request in the case may not be to explicitly provide a critique.
  • For instance, the case may request “recommendations for internal controls.” However, this is, in essence, a critique of the organization’s current internal control system (since that is required to identify recommendations).
• The CPA Way applied to critiques is commonly referred to as a “WIR” analysis, which stands for Weakness, Implication of the weakness, and Recommendation to address the weakness.
• The CPA Way WIR analysis is a method for achieving depth of analysis when discussing weaknesses in a case.
• In each case, you will identify the weaknesses, explain the implications of the weaknesses, and provide reasonable recommendations to fix them.

Step 1: Weakness (Assess the Situation)

• The first step of your analysis is to assess the situation to identify any weaknesses that are presented.
• In your response, state the weakness for the users so that they understand the issue that you have identified.
• Usually, this is just a restatement of the relevant case facts.
• Example: Amy is annoyed because her roommate constantly leaves the fridge door open. Amy would like to address this issue with her roommate. If Amy were to assess this situation using WIR, she would state the following:
  • Weakness — The fridge door is being left open.

Step 2: Implication (Analyze Major Issues)

• The second step is to analyze the issue that you have identified — that is, providing the implication of the weakness. This tells users why the weakness is an issue and helps them to understand the significance.
• In your response, state the negative impact of the issue that you have identified.
• Example (continuing from above): Implication — This results in the fridge not remaining cold and the food spoiling, which wastes money.
• Your implication needs to relate specifically to the weakness you identified and why the user should care.
• The reader should see a clear link between the weakness and the implication.
• If the weakness relates to a lack of segregation of duties, be specific in your explanation to clearly describe which duties are conflicting.

Step 3: Recommendation (Conclude and Advise)

• The final step of your analysis is to recommend a reasonable course of action to fix the weakness identified.
• This means telling the users exactly what they can do to improve. Be as specific as possible.
• Example (continuing from above): Recommendation — Close the fridge door.
• Before you begin your analysis, take a step back and prioritize the weaknesses/issues. Issues that have the greatest impact on the entity should be discussed first.