contribute to driving quality in these four areas. profession through organisations like the Center for We regularly perform ‘in lfight’ reviews of the most Audit Quality in the United States. And we continue to signiifcant projects at our Strategy Council member publish our overall network internal inspection results ifrms so that we can make any necessary changes for audit engagements. We are eager to keep engaging to ensure the quality of delivery and of the with others to share, listen and learn – while continuing client experience. to invest in enhancing the quality of every audit we undertake. A speciifc focus on audit quality To help our member ifrms deliver consistently Delivering quality audits is core to our purpose, and high-quality audits, PwC has established a quality all of our member ifrms across the world are management framework based on clear objectives committed to providing high quality in all our audit around audit quality and provides support to help work. Our new strategy’s focus on building trust meet these objectives. Our member ifrms can only continues to position audit where it belongs - at deliver quality audit services if they have access to the heart of what we do - supported by a deep the necessary capabilities both in terms of people and “Quality is our number one priority. Over commitment to quality. When our work falls below technology. That’s why our quality objectives focus on the next ifve years we will be investing the standards that we expect and that are set by the having the right capabilities – both at a member ifrm an additional US$1 billion in technology regulators, we should rightly be criticised. We take any level and across our network – and on using these to further enhance the impact and instance of a sub-standard audit very seriously and capabilities to meet our own standards and applicable effectiveness of our audits as a key part we work hard to analyse the root cause of the issue, professional requirements. These capabilities can only of our strategy - The New Equation.” learn the lessons and take the opportunity to enhance be developed and utilised within a quality culture, in the quality of future audits. Our member ifrms also which leadership sets the right tone and acts as role James Chalmers, relfect the importance of quality in the evaluation, models for our values and behaviours, with the result Global Assurance Leader, PwC recognition and accountability of the relevant that positive quality outcomes are demonstrated assurance partners and leadership teams. across the practice. We welcome the increased public focus on audit We also continue to provide guidance to support our quality, and the dialogue about how auditors, engagement teams in addressing new and emerging preparers and investors can work collaboratively to risks with our clients and as part of our audits. increase the level of conifdence in ifnancial reporting. Examples might include evaluating the impact of We have actively contributed to this debate with climate-related risks, and assessing whether these audit committees, boards and regulators worldwide, might give rise to a risk of material misstatement both directly as PwC, and also collaboratively as a of the ifnancial statements due to fraud or error.