EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
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At EY, we are committed to continually improving audit quality. That starts with maintaining a strong culture focused on doing the right thing, maintaining independence, and enhancing our audit approach by considering learnings from external and internal inspection results and feedback from EY teams through the annual Global Quality Survey.
Audit quality reviews
Internal inspections are carried out on selected engagements each year as part of our Audit Quality Review (AQR) program. We summarize the results and highlight any key areas where further improvements are needed. This monitoring activity complies with the requirements and guidelines in the International Standard on Quality Management 1 (ISQM 1) and is supplemented, where necessary, with EY member firm professional standards and regulatory requirements. It also aids EY member firms’ ongoing efforts to identify areas where performance can be improved, or policies and procedures can be enhanced.
The Global AQR program is supported by the Other Assurance Quality Review (OAQR) program. OAQR covers inspections of other assurance and related service engagements across all service lines, no matter who performs the work.
We summarize the results of the AQR and OAQR programs globally, including by Area and Region, and highlight any key areas where continued improvements are needed. Assurance leadership and Professional Practice take action to address audit quality matters identified from the global AQR program, external quality assurance reviews and peer reviews. These programs provide essential monitoring feedback for the System of Quality Management.
External inspections
More than 150 regulators conduct inspections of audit engagements across EY member firms. We value these external inspections because they offer important insights to strengthen audit quality. EY professionals with leadership roles carefully evaluate the points raised, including performing an engagement-level root cause analysis to identify areas for improvement — including those that could impact the System of Quality Management.
The results of external inspections are a relevant indicator of progress on audit quality. Progress is being made toward the targets set by IFIAR, the international forum of regulators that actively engages with members of the Global Public Policy Committee (GPPC), including EY. In November 2024, IFIAR issued a target of reducing inspection deficiencies by at least 25% over a four-year period ending 2027.
Engagement-level root cause analysis and action plans
A key part of our quality improvement framework is engagement-level root cause analysis. This process examines the underlying reasons for negative inspection outcomes — such as those resulting from inspections or restatements — and helps create targeted action plans. The findings of each root cause are analyzed in detail. Understanding the results allows us to focus on key behaviors that drive positive and high-quality results, making root cause analysis fundamental to continuous improvement.
Global Quality Survey
Each year, we conduct a Global Quality Survey to measure the quality culture across the EY network. The survey provides insights into how our culture is perceived, covering tone at the top, collaboration, workload management and ethical behavior. The results help us see where member firms are doing well and where additional action may be needed.