Results of our network internal inspections for audit engagements 2021 2020 2019 2018 2017 Total audit engagement reviews 1,618 1,661 1,768 1,890 1,870 Compliant % 83.3% 82.2% 76.5% 76.0% 72.8% Compliant with Improvement Required % 13.2% 14.0% 18.4% 16.2% 18.4% Total Compliant % 96.5% 96.2% 94.9% 92.2% 91.2% Non-Compliant 56 63 91 147 164 Non-Compliant % 3.5% 3.8% 5.1% 7.8% 8.8% fuliflling their responsibilities, and use a range of through our internal inspection process, 56 (3.5%) were inspection by external regulators. Some 58 of these checklists and tools developed at the network level rated as non-compliant, and, of those, ifve (2020: four) regulators are members of the International Forum of when conducting their review procedures. have been assessed as requiring a restatement of the Independent Audit Regulators (IFIAR). In 2015, in an audited organisation’s ifnancial statements and/or for the initiative aimed at improving audit quality, nine leading Between 2017 and 2021, we reviewed a total of auditor’s report to be withdrawn or reissued. audit regulators represented on IFIAR’s Global Audit 8,807 audits by member ifrms worldwide. The results Quality Working Group, and the six biggest global audit are set out in the table above. Forty-six per cent of We know we can do better and that we need to networks, agreed on a target to decrease the proportion those audits were of ‘public interest entities’ (PIEs) reduce the level of non-compliant audits further. of audits of listed public interest entities identiifed with (essentially listed and other signiifcant companies) We are investing heavily in enhancing audit quality ifndings from regulator inspections on an aggregate basis – and of these PIE audits, 197 were classiifed as non- as described above – and we remain fully committed over a four-year period up to 2019. compliant over the ifve years. to a culture of continuous improvement. A new 25% reduction target was subsequently established In cases where an audit is deemed to be non-compliant, Monitoring by audit regulators with the Global Audit Quality Working Group for the period we consider what, if any, impact this may have on from 2019 to 2023 with an expanded group of 25 audit the ifnancial statements of the entity. For the 2021 In addition to our internal review programme, regulators. We continue to monitor our progress against eviewedinspection cycle, of the 1,618 audits that we r our member ifrms are subject to monitoring and this target for regulatory inspection results.