PwC New Zealand Releases Its Audit Transparency Report For 2021

PwC New Zealand has released its Audit Transparency Report for 2021. The report outlines detailed information about the firm’s audit practice and follows the release of its inaugural report last year - a first for New Zealand.

This year’s report covers PwC’s work to improve, and deliver on, audit quality including:

The Audit Quality Balanced Scorecard for the year ended 2021 which discloses how the firm is performing against key measures of audit quality such as internal PwC inspection findings, leadership, training and culture.

The observations and recommendations made by its independent Audit Advisory Board.

Insights into the rise of non-financial and ESG reporting.

Commentary on the lasting effect of COVID-19 on audits including the impact of closed borders and the sustainability of the profession.

PwC New Zealand Chief Risk & Reputation Officer Karen Shires says, “Last year we started our work to provide greater transparency about our audit business. Part of this included launching our first ever Audit Transparency Report and today we’re delighted to be launching our updated report for 2021.

“The purpose of the report is to provide transparency to our key stakeholders and the broader community on how we conduct our audit work and outline our commitment to audit quality.”

Audit Leader Rich Day outlines the importance of PwC New Zealand’s audit practice.

“Our audit business is fundamental to our firm’s strategy and building trust. We continue to invest in improving audit quality, through new systems, technology and increased use of digital tools. This is alongside rewarding our team appropriately for their great work as well as investing in their upskilling and continuous learning and development.”

In the Audit Quality Balanced Scorecard for the year ended 30 June 2021, the firm reveals how it performs against a variety of key indicators that are central to audit quality. These include:

PwC internal inspections. PwC New Zealand is subject to globally coordinated quality inspections moderated by PwC’s Global Assurance Risk & Quality team. In 2021 94% of the PwC New Zealand audits tested were rated as fully compliant with PwC’s guidelines and auditing standards in comparison to 80% in 2020.

Audit reporting. Key Audit Matters (KAMs) are important tools for investors to understand the health of a business. They are included in the audit reports of all FMC entities with a higher level of public accountability and provide transparency about the most significant matters in the audit of the financial statements. During the period, PwC New Zealand issued 136 KAM opinions providing insights into the areas of the audit requiring significant audit attention and effort.

Leadership. PwC New Zealand regularly collects feedback on the behaviours that enhance audit quality demonstrated by audit partners and our specialist support teams. In our 2021 Global People Survey 95% stated ‘The leaders I work with are committed to providing high quality services to external clients.’

Training. Continued learning is an important part of delivering quality audit services. Over the period, audit partners and staff completed an average of 96 hours of online and classroom training.

Rich Day concludes, “We’re proud of the role we’re playing in opening up discussion about audit quality in New Zealand.”

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