Revenues from audit clients in major indices FY19 72% 28% clients and their related entities. These documents are based on the International Independence Standards established by the IESBA, as well as the rules and FY20 71% 29% standards issued by other regulatory authorities. Member ifrms supplement this with local standards. FY21 70% 30% When our member ifrms are providing non-audit services to audit clients, they are required to provide only those non-audit services that are permissible Audit services under the applicable rules. In some instances, these Non-audit services non-audit services are required by law or regulations to be performed by the auditor. However, while we have the right controls in place regarding the improvements in systems and processes, and for provision of non-audit services to audit clients, we additional guidance and training. audit engagement partner responsible for services to are also conscious of the threats to independence in that entity (or a related entity). A new Authorisation for appearance that can be created by the provision of Review Service (AFS) system launched in FY20 has increased non-audit services to our audit clients. So we assess PwC reviews each ifrm’s compliance with professional the effectiveness and efifciency of the scope of this threat as part of our acceptance processes. standards and policies, including those relating services review and approval process. to independence, through inspection activities Our Network Risk Management Policy also requires directed at a risk-based sample of member ifrms. In FY21, as part of our ongoing improvement efforts, that engagement teams who perform certain non- Any departure from independence requirements the AFS system was replatformed to further enhance audit services engagements for SEC-restricted entities in the PwC independence policies and/or external our independence control processes and integrate obtain approval from an independence specialist. These regulations is evaluated. them more closely with our other risk processes. reviews are performed by independence specialists who To support these improvements and promote make up a global Centre of Excellence (CoE). Controls over non-audit services understanding of the independence requirements that Before providing non-audit services to entities that are apply, PwC has developed a comprehensive set of In FY21, 72% of revenues from our audit clients in subject to independence restrictions, all member ifrms policy and supplementary guidance documents that major global indices were for audit services. Twenty are required to obtain authorisation from the group address the provision of non-audit services to audit eight per cent were for non-audit services (FY20: 29%).