2021 Audit Transparency Report

Introduction

Over the past year, I’ve been really impressed by how our teams have responded to change and adapted to new ways of working, and by the commitment our people have shown to each other, to our business, and to delivering quality.

What is the Audit & Assurance strategy?

Our strategy is centred around our purpose of protecting the public interest and building trust and confidence in business.

How we are organised and the way we work together is critical, including the audit culture and the audit quality environment that we create.

So this is why, on 1 June we implemented the majority of operational separation and evolved our operating model.

Are you happy with the progress in audit quality?

Every day, I see for myself the absolute commitment of our people to delivering the very highest audit quality standards and I know how much we invest in continuous improvement. So, I’m happy with the progress we’ve made in recent years.

But, of course, I recognise there’s still more to do. The FRC's recent public report on its audit quality review of Deloitte demonstrates many positive findings, as well as some valuable learnings for us to take forward.

We can and we want to do more to achieve the consistently high standards of quality we expect of ourselves, and others expect of us.

What impact will operational separation have?

As a fully transparent business, independently governed by our new Audit Governance Board and clearly separated from advisory work, we’ll enhance our focus on audit quality and in serving the public interest.

The Audit Governance Board is already advising and challenging us, getting right to the heart of the drivers of audit quality.

What are your top priorities for FY22?

I’ve spoken about audit quality and there’s a lot more on this in the Report.

Another priority is to embed the new operating model. It will create more opportunities for our people development and in so doing enhance the attractiveness of the audit profession.

It’s also an important time for us to be preparing for the next wave of audit rotations and tenders, where we can build on all the fantastic work we have done to date to ensure a strong and resilient business that continues to serve the public interest.

What are your perspectives on the current scrutiny of the audit profession?

The spotlight on audit clearly demonstrates how important it is for society, and its role in protecting the public interest.

While such scrutiny brings challenges, it also presents a unique opportunity to shape the future of our profession. One where audit remains a valued service and an attractive profession, and our Audit & Assurance business continues to be a really great place to work.