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2018 Audit Quality Report
Our priority, today and always

At Deloitte, audit quality is always our priority. Our progress on enhancing audit quality is strong and steady. The investments we continue to make are fueling our aim to keep getting even better.

In this report, we reflect on our journey over the past three years and—in more detail—the progress and what we introduced in 2018 calendar year. We also describe the strong foundation we have established for delivering the highest standard of audit quality consistently across all audits.

How we define audit quality

Audit quality is an elusive concept, and to hold ourselves accountable to it, we defined it. We asked public company executives, audit committees, regulators, and our own audit professionals to discern what they see as essential elements of “audit quality.” Each of their unique perspectives is entrenched in our working definition of the term. We believe audit quality includes at least three dimensions:

Delivering professional excellence
At a technical level, quality can be defined as completing an audit in accordance with applicable auditing standards.

Innovating the audit approach
A quality audit capitalizes on leading-edge technologies, analytics, and audit methods to perform an effective audit. In our view, advances in our audit approach must at least keep pace with the advances in the systems and processes of the companies we audit.

Communicating insights
Thoughtful communication of findings from the auditor's work generates conversations that are robust, insightful, and sharply focused on the company's key risks and issues.

Delivering professional excellence

At a technical level, quality can be defined as completing an audit in accordance with applicable auditing standards.
Innovating the audit approach

A quality audit capitalizes on leading-edge technologies, analytics, and audit methods to perform an effective audit. In our view, advances in our audit approach must at least keep pace with the advances in the systems and processes of the companies we audit.
Communicating insights

Thoughtful communication of findings from the auditor's work generates conversations that are robust, insightful, and sharply focused on the company's key risks and issues.

In 2018, we took deliberate steps to deliver on each dimension of audit quality.

Our journey of deliberate continuous enhancement


We’ve made significant strides in the pursuit of our audit quality aspirations through our actions and investments in audit quality in recent years.

2016

Targeting individual
audits

Our earliest significant audit quality investments supported the completion of our 2015 year-end audits by enhancing our learning programs, adding technical resources across Canada and conducting reviews on selected audits as they were underway.

2017

Broadening our impact across all audits

Our quality processes, programs and tools were further enhanced based on our conviction that no matter how well prepared individual audit teams are, achieving the highest levels of audit quality consistently across every engagement.

2018

Bolstering our quality management systems

Ongoing efforts to enhance our quality management systems were intensified. Using a risk-based approach, we evaluated our processes, programs and tools to assess their contribution to our achievement of our audit quality expectations consistently across all audits.

Our quality foundation is solid. We’re stretching further, ready to raise the bar on audit quality even higher..

Explore other resources to help audit committees and companies assess audit quality

10 questions—and a catalogue of corresponding leading practices—to assist you in efficiently achieving quality, transparent, and reliable financial reporting.

Explore the value of conducting a comprehensive review and understand the key phases necessary to effectively execute it.

8 lessons learned from our recent experiences aimed to assist you in asking the right questions in preparation for trying AQIs in the audit life cycle.

An overview of Deloitte’s legal structure, governance, ethical and independence principles, quality control procedures.

Get in touch with us

At Deloitte, the pursuit of audit quality is at the center of our culture of continuous improvement and innovation, as we seek to make our best work today even better tomorrow. This means backing our words with significant investment and action. If you have any questions, or would like to learn more, we would like to hear from you.

For more information on previous audit quality updates, view our reports from 2016 and 2017.

Key contact

Nathalie Tessier

Nathalie Tessier

Managing Partner, Audit & Assurance

Nathalie Tessier is the Canadian Managing Partner, Audit & Assurance and is a member of both the Canadian firm’s Executive team and the Global Audit & Assurance Leadership team. Prior to her current r... More

Richard Olfert

Richard Olfert

Regulatory, Quality & Risk

Richard is the Managing Partner, Regulatory, Quality & Risk. He also serves as a member of Deloitte Canada’s Executive, on the Global Risk and Regulatory committees and as a director of Nautilus Indem...More

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