2 minute read 27 Sep 2019
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EY UK Transparency Report 2019

Welcome to the EY UK 2019 Transparency Report

In 2019 our profession has continued to be under scrutiny from policymakers and other stakeholders. Our 2019 Transparency Report (TR) sets out how we address our public interest responsibilities to both the companies we audit and to our people.

It is in our interests and the public’s for EY UK to be as open and transparent as possible. The TR helps us achieve this, while providing a clear description of what we do and how we perform as a business. We include details on our role in building trust and confidence in the capital markets and wider economies, and how we maintain and develop positive relationships with all our stakeholders. It explains what we do to make a difference to people’s lives by helping to improve social mobility and equality. It also shows how our people are supported in their role as auditors by making reference to our tools, technologies and training programmes. Details on internal and external surveys and inspections are included as well, together with what we have learned from them and what we plan to do differently.

This year’s TR, and complementary materials, are available for you to view and download from the left panel. This includes our inaugural Audit Quality Report. It sets out the actions we have taken to improve audit quality and, importantly, those that we will focus on in the future. We hope that it will help audit committees and other key stakeholders to understand in more detail the steps we are taking to deliver audit quality. 

Highlights

Summary

Publishing our TR really matters to us. It is one way we can be candid with you about our success and disappointments from 2019. That said, our TR is compliant with the Audit Firm Governance Code 2016, Local Auditors (Transparency) Instrument 2015, and Article 13 of the EU Audit Regulation (537/2014). In addition to this information, and new for this year, is our Audit Quality Report. We encourage you to read both reports, and if you require further information please contact us using the details below.       

The EY LLP Board

  • Steve Varley

    EY UK LLP Chairman and
    UK&I Managing Partner

    Steve is the UK Chairman and a member of EY’s Europe, Middle East, India and Africa (EMEIA) Board. Steve joined the firm in 2005 and has nearly 30 years of client and consulting business experience in various sectors including pharmaceuticals, oil & gas and public services. Steve is a member of HM Treasury’s Professional Services Council and has also attended the Prime Minister’s Business Advisory Council.

    Steve is a founding member of the Social Business Trust and a member of its Investment Committee. He is also a member of the International Chamber of Commerce Governing body and is a member of the Productivity Leadership Group (PLG). He is on the board of Loughborough University and a member of the 30% Club where he is an active supporter and speaker on diversity and inclusiveness, believing that a diverse workforce is a commercial imperative for business success.

  • Justine Belton

    UK Country Professional Practice Director and UK Audit Compliance Principal

    Justine has been at EY for 28 years, and been an assurance partner for 17 years. For the last eight years she has balanced her client delivery and engagement quality review roles with her responsibilities as a partner within the firm’s Professional Practice Group where her roles have included being UK & Ireland Audit Implementation and Enablement leader and as a partner in the London Financial Reporting Group. Justine is a member of the ICAEW, has served two terms on the Institute's Learning and Professional Development board and is a current member of the Audit and Assurance Faculty Committee and the Practice Committee.

  • Sue Dawe

    Managing Partner, Head of Financial Services, Scotland

    Sue brings extensive experience within the financial services sector. Her specific focus has been in the Wealth and Asset Management (WAM) Sector, where she has extensive experience delivering audits, control, and regulatory reviews. Sue joined EY in 1988, became a partner in 2009, and was appointed Head of Financial Services Scotland in 2016. Prior to her current role, Sue was the EMEIA leader of Wealth and Asset Management Assurance and Head of UK WAM Audit. Sue is on the board of Scottish Financial Enterprise and the Financial Services Advisory Board.

  • Hywel Ball

    Head of EY UK Audit, Managing Partner UKI Assurance

    Hywel has been a Partner with the firm for over 25 years. He is the audit partner on two FTSE 50 companies audited by EY.

    Hywel sits on the Auditors’ Advisory Group for Sir Donald Brydon’s Independent Review into the Quality and Effectiveness of the UK Audit Market and on the Advisory Board for the Financial Reporting Council’s work on the Future of Corporate Reporting. In addition, he is a member of the Audit Committee of The British Museum.

    Hywel co-authored EY’s Long Term Value framework, which is designed to help companies measure and communicate the value they create for all stakeholders. He also led a proof of concept for this framework with the Coalition for Inclusive Capitalism and over 30 global participants. He is a member of the World Economic Forum’s Council on Long Term Investing.

  • Lynn Rattigan

    UK&I Chief Operating Officer

    Lynn has spent her entire career in professional services. She has been a partner at EY UK since 2001 and has held a number of leadership positions during that time. In January 2015, Lynn joined the EY UK Management Team as the Chief Operating Officer for UK & Ireland.

    From a client perspective, Lynn has had an extensive and diverse range of client experiences throughout her career, having worked with a number of FTSE 100 companies and private equity houses, specializing in the delivery of Corporate Finance services.

  • Christabel Cowling

    Audit Partner and UK Head of Regulatory and Public Policy

    Christabel has extensive experience in the areas of auditing multinational listed groups under IFRS and of reporting accountant work for corporate transactions. Prior to her current role, Christabel worked in Leeds, Birmingham and London and led our Audit business across the North of England and Scotland between 2011 and 2014. Christabel was COO for Assurance across the UK & Ireland between 2014 to 2018.

    Christabel has strong technical experience including IFRS, US GAAP, US SOX, corporate governance and advising on financial reporting issues. Christabel has worked across many different sectors but has spent much of her career working in the Utilities, Retail and Manufacturing sectors.

    Christabel is the Chair of the Policy and Reputation Group (PRG), which includes representatives of the seven largest global accounting and auditing networks.

  • Omar Ali

    Managing Partner UK Financial Services

    Omar was appointed to the role in October 2015, and now leads a team of more than 200 partners and more than 4,000 staff, with responsibility for some of the firm’s largest clients globally. In addition to his leadership responsibilities, Omar continues to focus on his portfolio of clients.

    Omar was previously UK Banking and Capital Markets Leader, a position he held from January 2012. Omar joined EY in 2001, becoming partner in 2006, and ran the UK Financial Services Banking Consulting business from 2008 to 2011.

    Omar is an advocate of innovation in professional services; he is a board member of TheCityUK and a member of both the Department for International Trade’s Fintech Trade & Investment Steering Board, and the Innovate Finance FinTech Strategy Group launched in collaboration with the City of London Corporation in 2018. Omar is a strong supporter of D&I and the diversification of skills and talent within Financial Services. He is responsible for TheCityUK’s skills and talent agenda and sits on the Treasury-sponsored FS Skills Taskforce.

  • Lisa Cameron

    General Counsel, Managing Partner Risk Management, UK & Ireland

    Lisa is a dual qualified lawyer who joined EY in 1998. A litigator by background, she deals with all legal issues affecting the firm.

    Lisa and her team advise leadership and partners on matters of contract, regulation, governance, transactions, litigation, employment, and overall practice protection. Lisa assumed the role of General Counsel on becoming partner in 2006. Since 2009 she has also held the position of Managing Partner for Risk Management in which she is responsible for the firm’s risk management procedures and implementation including those relating to Independence.

  • Debbie O’Hanlon

    Managing Partner, National Markets

    Debbie is a member of the UK&I Leadership team and leads EY’s Regional and Private Middle Markets businesses. Based in Reading, Debbie is also a Trustee for the EY Foundation.

    An audit partner for 16 years, she has over 30 years' experience in the profession, working with a range of listed, private and public sector businesses.

    Debbie has also spent a number of years working in the social housing sector, in both executive and non-executive positions.

  • Ian Baggs

    Managing Partner, Assurance, EY UK Financial Services

    Ian has been with EY for over 30 years, making partner in 1997. He leads the UK Financial Services Assurance practice, a role he was appointed to in December 2015. Prior to this Ian held various leadership positions, including UK Banking & Capital Markets Leader from 2003 to 2008 and Global Banking & Capital Markets Deputy Leader from 2011 to 2015. He started his career in the Assurance practice and has worked with many of the world’s largest global banks and securities firms.

    He continues to serve a range of clients across the banking sector with a focus on audit, governance, controls and regulation.

The Independent Oversight Committee and Independent Non-Executives (INEs) 

  • David Thorburn

    David Thorburn, INE, was appointed on 1 June 2016 and a member of the IOC since April 2017.

    David is an External Member of the Bank of England’s Prudential Regulatory Committee and chairs the Chartered Banker Institute 2025 Foundation.

    David is a Chartered Banker and former CEO of Clydesdale and Yorkshire Banks. He is also a former Chairman of CBI Scotland, the Scottish Financial Services Skills Gateway and the Advisory Board at Strathclyde Graduate School of Business.

    David is a Past President of The Chartered Institute of Bankers in Scotland, and former Board Director of the British Bankers Association and Scottish Financial Enterprise. He was a founder member of the Professional Standards Board of the Chartered Banker Institute.

    David’s competencies include accounting, based on his practical experience during his 37 years in banking, where he served latterly as CEO of Clydesdale Bank PLC and attended the Board Risk & Audit Committees, together with his current role at the Bank of England.

  • Tonia Lovell

    Tonia Lovell, INE, was appointed on 1 June 2019 and has been a member of the IOC since June 2019.

    Tonia practised law for over 25 years, at Linklaters and then in-house at Unilever. During her 20 plus years at Unilever her roles included Chief Legal Officer (2010 – 2013), Group Secretary (2010-2018), General Counsel, Corporate Governance (2015-2018) and General Counsel for the UK and Ireland (2003-2010).

    Her experience at Unilever included being an advisory member of the Unilever Executive Committee, corporate governance adviser to the Unilever Boards and Director of Unilever UK/Ireland, as well as seats on the Unilever’s Disclosure, Pensions and Equity, Information Protection and IT Investments Committees. Tonia is a member of the External Advisory Committee to Royal London Asset Management’s sustainability funds, a coach/mentor to members of the Legal community and a former member of the GC100 Executive Committee.

  • Sir Peter Westmacott

    Sir Peter Westmacott, INE, appointed on 1 April 2017 and a member of the IOC since April 2017.

    Sir Peter was British Ambassador to the United States from January 2012 until he retired from the UK Diplomatic Service in January 2016. He spent a semester at Harvard’s Kennedy School of Government as a Resident Fellow.

    Sir Peter was British Ambassador to France from 2007-2012 and to Turkey from 2002-2006. His 40-year diplomatic career included four years in Iran before the 1979 revolution and a secondment to the European Commission in Brussels. He was the Foreign and Commonwealth Office’s Director for the Americas from 1997-2000 and Deputy Under Secretary of State from 2000-2001. From 1990-1993, he was Deputy Private Secretary to His Royal Highness The Prince of Wales. He is a Distinguished Ambassadorial Fellow at the Atlantic Council, Deputy Chairman of Tellus Matrix LLP and an Advisory Director of Campbell Lutyens & Co.

Information on INEs and EY UK governance related matters

In compliance with the Audit Firm Governance Code (AFGC) we have included below certain disclosures on our governance including information on the INEs, stakeholder engagement, the firm’s support for the AFGC and details on our audit committee. This information, and related material, is available in the EY UK 2019 Transparency Report.

  • Duties of the INEs and EY support

    The Independent Oversight Committee’s (IOC) role is collectively to enhance EY UK’s performance in meeting the purpose of the AFGC, focusing on (but not being limited to) oversight of its policies and processes for meeting the principal AFGC objectives. The INEs, who form the IOC, have full visibility of the entirety of EY UK’s business and pay particular attention to, and report on, the risks to audit quality and how these risks are managed by the firm. The INEs’ duties, which are exercised through the IOC can be summarised as follows:

    • Promoting audit quality
    • Helping the firm secure its reputation more broadly, including in its non-audit business
    • Reducing the risk of firm failure

    In addition to the IOC, David Thorburn also attends the EY Global Governance Council and he represents the UK INEs on the EY Global Public Interest Committee, which he has chaired since April 2017.

    See the IOC’s Terms of Reference.

    INEs are entitled to request all relevant information about EY UK’s affairs, including access to relevant partners, as is reasonably necessary to discharge their duties. EY UK provides INEs with full administrative support in performing their duties and access to advice from professional advisers at EY UK’s expense (subject to consultation with the Chair to establish and approve the appropriate means of obtaining this professional advice). The INEs have the benefit of a policy of directors’ and officers’ insurance in respect of their roles.

    Additionally, EY UK’s Independence and Ethics Partner plays a regular part of the quarterly IOC agenda, offering the INEs updates on EY UK’s independence activities and current issues. The INEs also meet the Ethics Partner to discuss ad hoc issues and matters relating to the Reputation and Conflicts Panel. Support is also provided by the Company Secretary, Director of Regulatory & Public Policy – stakeholder engagement, and EY Executive Assistant – administration and expenses. 

    • Appointment, retirement and resignation of INEs

      INEs are appointed by the Board for an initial term of three fiscal years. With the approval of the Board, an INE may be invited to serve for a maximum of one additional term of three fiscal years. Rights and responsibilities of the INEs are set out in a Letter of Appointment and Service.

      The appointment may be terminated by either the INE or EY UK giving six months’ written notice. In the event of a fundamental disagreement that cannot be resolved, the appointment may be terminated immediately under the dispute resolution provisions. In addition, immediate termination may be required where a conflict occurs with other roles that the INE holds, an example being where an audit client acquires an entity in which the INE also holds an appointment.

      IOC Members Title Length of appointment to 
      the nearest year
      David Thorburn (Chair) Independent Non-Executive, Chairman of the IOC 2 years
      Sir Peter Westmacott Independent Non-Executive 2 years
      Tonia Lovell  Independent Non-Executive Appointed on 1 June 2019
    • Remuneration of INEs

      EY UK INEs are paid a fixed annual income, based on an agreed number of days’ service per annum, which has been benchmarked with FTSE 100 non-executive director roles.

      The annual salaries of the INEs in respect of their UK roles are/were:

      • David Thorburn: £90,000 (as IOC Chair)
      • Rosemary Martin: £75,000
      • Tonia Lovell: £75,000
      • Sir Peter Westmacott: £75,000

      Sir Peter receives an additional £25,000 for advice to the Board on international geo-political and governmental issues. David Thorburn also receives an additional £82,500 for his INE role on the Global Governance Council. 

  • Procedures for dealing with fundamental disagreements between INEs and EY’s management

    In the event that there is a fundamental disagreement between an INE and members of the Board of EY UK and/or its governance structures, the INE shall set out the nature and status of the disagreement, in writing, to the Chair of the Board (copied to the members, including the other party in disagreement), together with any other details such as a need for further information, the respective positions of the parties and any preferred criteria for resolving the disagreement. The Chair shall respond to the INE in writing by setting out any proposed timescale and method for resolving the disagreement.

    At the conclusion of the proposed time, the INE and the other party in disagreement shall indicate to the Chair whether or not the disagreement has been resolved. In the event that the disagreement has not been resolved, both the INE and the other party in disagreement must indicate whether a further intercession by the Chair is desired. In the event that no such indication is made and the disagreement persists or, if the nature of the disagreement relates directly to the Chair, the INE or the firm may terminate the INE appointment.

  • Examples of how EY supports the principles of the Audit Firm Governance Code

    We could not have the successful business that we do without the expertise and professionalism of all our 14,500 people in the UK. The energy they bring and the values they hold underpin EY UK’s ability to serve and protect the public interest through the work that we do across the firm. We continue to create an open and inclusive culture in which anyone can succeed irrespective of race, gender or social background.

    • Openess

      The EY culture strongly supports collaboration and places special emphasis on the importance of consultation in dealing with complex or subjective accounting, auditing, reporting, regulatory and independence matters. We believe it is important to determine that engagement teams and clients correctly follow consultation advice, and we emphasize this when necessary. Openness is also key. In our annual Internal Audit Quality Survey of audit staff 72% of respondents said that when mistakes happen, they are discussed and used for learning purposes within the team and the organisation.

    • Risk management principles

      The Board of EY UK (the Board) has overall responsibility for risk management and internal control over the entire business of EY UK. In discharging this responsibility, the Board periodically, and at least annually, conducts a review of the effectiveness of the firm’s system of internal control.

      In maintaining a sound system of internal control and risk management and in reviewing its effectiveness, we have used the framework set out in the FRC’s 2014 Guidance on Risk Management, Internal Controls and Related Financial and Business Reporting. This internal control system is designed to manage, rather than eliminate, the risk of failure to achieve the objectives of the firm, and it can only provide reasonable and not absolute assurance against material misstatement or loss. Both the EY UK LLP Board and INEs reviewed the output of the 2019 effectiveness review of the firm’s internal controls, which included all material controls.

    • Recruitment, development and remuneration

      To respond to our growing business we recruited more experienced hires during FY19 than in previous years. We have re-energized our onboarding program to ensure it is better tailored to the needs of our new joiners, addressing cultural differences and differing working practices as well as heightened UK specific technical training and job shadowing. This ensures that audit quality is protected and that the individuals receive an exceptional employee experience from day one, helping them to quickly feel a sense of belonging to our firm.

      We continue to offer a broad mix of apprenticeship programs, including Digital and Technology Degree Apprenticeships which allow students to specialize in data analytics or software engineering, preparing them to be part of the workforce of the future. Students and parents are offered a wealth of insights, career advice and guidance so they can make the right career choices.

      Our Parental Advice Campaign reached 3.1million people. During 2019 we launched a Women in Business Insight Programme for over 100 first year undergraduates. Around 80% of these people now have a place on our Summer Internship Programme for summer 2020 across all locations and service lines. We also ran a successful Leading Women program for second year undergraduates. 80% of them are set to join as graduates in September 2020. We also introduced a new digital recruitment process. This means the candidates get more from their time investment in the application process and we are better able to assess their future potential.

      Processes and procedures are in operation at service line level to manage the retention and management of staff. These include:

      Supporting personal development

      • Individual counselling and ‘buddying’ programmes to develop the right talent
      • Implementation of a firm-wide harmonized Learning & Development strategy
      • Multi-year talent programs, including diversity and inclusiveness initiatives
      • Strengthened induction and post-induction programmes at staff and partner level

      Involving senior management to foster talent

      • Implementation of ‘Market Learning Sponsors’ to ensure Senior Management buy-in and to embed Learning & Development into individual service line strategy
      • Regular leadership communications covering strategy and performance
      • Annual employee survey with formulation of action plans

      Managing better performance

      • Simplified annual performance management processes
      • Annual benchmarking of total reward by grade, location and competency groups

      Leadership Evaluation and Development (LEAD)

      Leadership Evaluation and Development (LEAD) is our forward-looking EY approach to supporting people’s careers, development and performance. This approach focuses on continuous feedback resulting in better conversations built around 90-day cycles. Feedback is aggregated and used as an input to compensation and reward programmes.

      It is designed to support the growth and development of our people at all stages of their career at EY. An individual’s personal dashboard provides an easy to interpret snapshot of their performance against EY’s leadership dimensions, and assessed performance against peers.

      LEAD retains components from our previous Performance Management and Development Process approach that were providing our people with clear work expectations and the opportunity to self-assess their performance. During the course of the year, every professional, in conjunction with their counsellor, identifies opportunities for further development.

      Remuneration

      The objective of our Remuneration Committee is for all our people to be rewarded fairly and competitively. Pay bands are reviewed annually and pay increases usually have two components: base pay increase and variable pay that depends on the firm’s performance.

      In 2018 the Remuneration Committee led a review of the variable pay element of our total reward package to ensure that the scheme is better understood and aligns with LEAD, our performance management system. Feedback from our people, gathered through our Global People Survey, Cultural Survey Assessment and numerous working groups involving participants from all ranks, service lines, markets and geographic locations drove the key components of the variable pay refresh.

      This refreshed variable pay proposition provides more transparency about how the scheme pays out and how an individual can influence or have access to a performance award. The variable pay element of our total reward package was well received in FY18 and has been carried forward into FY19. It should be noted that INEs have been included in reviewing our people management policies and procedures, including remuneration and incentive structures at the EY UK LLP Board.

  • Whistleblowing policies and procedures – INEs' consideration of issues raised

    While the INEs’ work is typically more thematic in nature, they also engaged on individual client matters during the year where the circumstances merited it. Full visibility of the entirety of the business is acquired by their attendance at the firm’s Board meetings including oversight of its operations, its financial performance and its whistleblowing procedures.   

    The EY Global Code of Conduct provides a behavioural and ethical framework on which EY member firms and EY people base their decisions and actions. All EY UK joiners watch a video on living the Code of Conduct in practice and confirm that they will comply with the Code. Additionally, all EY people confirm annually that they have been, and will continue to be, in compliance with the Code. An Ethics Hotline is available for any EY person to report conduct that they consider is not in accordance with the Code.

    In FY18, EY launched a new global policy, reporting non-compliance with laws, regulations and EY’s Code of Conduct (NOCLAR). The policy responded to a new standard issued by IESBA setting out a framework to guide actions of professional accountants in deciding how best to act in the public interest when they become aware of actual or suspected non-compliance with laws and regulations. The new policy also reinforced the general principles of our Global Code of Conduct by rejecting unethical or illegal business practices, supporting compliance with laws, regulations and standards, and upholding our commitment to ethical behaviour and quality. NOCLAR clarifies our people’s responsibility to speak up.

    At EY UK, we have measures in place for people to make a whistleblowing report in confidence and anonymously. In FY18, the UK whistleblowing guidance was updated to include:

    • Guidance on what constitutes a whistleblowing complaint
    • Information on how to handle a whistleblowing report if one is made to a partner or member of staff rather than via the hotline
    • EY procedures on responding to whistleblowing reports

    The guidance is kept under constant review, and it is anticipated that a further update will be undertaken during FY20. Each year, a communication is issued to remind all partners and staff that they have a personal responsibility to report all instances of non-compliant and unethical behaviour, without fear of reprisal. The most recent such communication was circulated in June 2019.

  • EY UK Audit Committee (UKAC)

    The UKAC reviews and monitors the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements. It is also responsible for making recommendations in relation to the appointment of the external auditor and for approving the remuneration and terms of engagement of the external auditor. The UKAC monitors the integrity of the financial statements of the firm, reviews significant financial reporting judgements and recommends the approval of the financial statements to the Board.

    • Douglas Nisbet (Chair until 28 June 2019)
    • Lloyd Brown
    • Chris Voogd (Chair as of 28 June 2019)
    • Stuart Wilson
    • Sarah Williams (as of 1 June 2019)

    In respect of FY19 the UKAC met twice and:

    • Approved the appointment and fees of the external auditor
    • Approved the audit plan, considering the risks identified by the external auditors
    • Reviewed the audit results as reported by the external auditor

    UKAC members are appointed by the Board and will serve for a period appropriate to their experience and their other roles and responsibilities.

  • Contacts, policies and procedures for dialogue

    The contact details for dialogue with listed company shareholders and listed companies about matters covered by the AFGC are:

    • Policy and procedures for dialogue over the last year

      We have continuously sought engagement and dialogue with material stakeholders. These include investors, regulators, civil servants, parliamentarians, audit committee chairs, chief financial officers and the wider boards of listed companies. It is more crucial than ever that we hear from a range of voices to build a more trusted audit product that underpins the capital markets, meets public expectations and supports the attractiveness of the UK as a place to do business.

      Engaging with a broad range of stakeholders was particularly important this year given the debate on competition, choice and quality in the audit market. We were able to discuss our views and initiatives in relation to audit quality and other matters covered by the Audit Firm Governance Code. The insights gained through these stakeholder discussions helped to improve our understanding of and response to market needs and the public interest respectively.

      The demand for greater accountability and transparency has never been higher, and the volume of our engagement activities reflects how seriously we take this responsibility.

    • Investors

      Investors are the ultimate beneficiaries of audit. It is therefore critical that we understand their perspectives. We hosted our annual Dialogue with Investors in November 2018, welcoming 20 investors representing £2 trillion in assets under management (AUM) to discuss audit quality, corporate reporting and standards. In May 2019, our INEs held a discussion with the investor group, the Company Reporting and Auditing Group (CRAG). With several ongoing regulatory and independent reviews impacting the audit market, the timing of this meeting was particularly apt: subjects for discussion included fees, competition, director accountability and corporate reporting.

      In order to further enhance the discussion, engagement with a wider range of professionals, particularly more of those directly involved in the investment process, would have helped ensure that we heard from as broad a range of investor perspectives as possible, and that we were even more closely engaged with investor opinion, issues and concerns.

      We also hosted knowledge sharing sessions with investment houses about engagement with company boards on reporting and auditing matters. These sessions included two with Allianz Global Investment, one with BMO Global Asset Management (EMEA) and participation in a joint Investor Forum and Investment Association event. These sessions helped to deepen understanding about audit and better equip investors to engage with company boards on reporting and auditing matters.

    • Audit committee chairs of listed companies

      The debate on audit reform has brought into focus the importance of the relationship between audit committee chairs, investors and auditors, and in June 2019 EY INEs met with the Audit Committee Chairs’ Independent Forum. The dialogue was the first of its kind and focused on ways audit firms can improve engagement with companies and increase transparency on audit quality reporting. 

  • The Local Auditors (Transparency) Instrument 2015 (major local audits)

    Engagement Sector Types
    Bedford Borough Council LG Unitary Authority
    Bedford Pension Fund LG Pension LG Pension Fund
    Brighton and Hove City Council LG Unitary Authority
    Brighton and Sussex University Hospitals NHS Trust NHS Acute NHS Trust
    Central Bedfordshire Council LG Unitary Authority
    Derby City Council LG Unitary Authority
    Essex County Council LG County Council
    Essex Pension Fund LG Pension LG Pension Fund
    Gloucestershire Hospitals NHS Foundation Trust NHS Foundation Trust
    Greater London Authority LG GLA and Functional Bodies
    Hampshire County Council LG County Council
    Hampshire Pension Fund LG Pension LG Pension Fund
    Hertfordshire County Council LG County Council
    Hertfordshire Pension Fund LG Pension LG Pension Fund
    London Borough of Havering Council LG London Borough Council
    London Borough of Havering Council Pension Fund LG Pension LG Pension Fund
    London Borough of Hillingdon LG London Borough Council
    London Borough of Hillingdon Pension Fund LG Pension LG Pension Fund
    London Borough of Newham LG London Borough Council
    London Borough of Newham Pension Fund LG Pension LG Pension Fund
    London Fire and Emergency Planning Authority LG Fire Authority
    Luton Borough Council LG Unitary Authority
    Merton Council LG London Borough Council
    Merton Pension Fund LG Pension LG Pension Fund
    Middlesbrough Pension Fund (Teesside) LG Pension LG Pension Fund
    Middlesbrough Council LG Unitary Authority
    Milton Keynes Council LG Unitary Authority
    Newcastle City Council LG Metropolitan DC
    NHS Berkshire West Commissioning Group NHS Clinical Commissioning Group
    NHS Buckinghamshire Clinical Commissioning Group NHS Clinical Commissioning Group
    NHS Cambridgeshire and Peterborough Clinical Commissioning Group NHS Clinical Commissioning Group
    NHS Coastal West Sussex Clinical Commissioning Group NHS Clinical Commissioning Group
    NHS Coventry and Rugby Clinical Commissioning Group NHS Clinical Commissioning Group
    NHS Durham Dales, Easington and Sedgefield Clinical Commissioning Group NHS Clinical Commissioning Group
    NHS Ipswich and East Suffolk Clinical Commissioning Group NHS Clinical Commissioning Group
    NHS Oxfordshire Clinical Commissioning Group NHS Clinical Commissioning Group
    Norfolk County Council LG County Council
    Norfolk Pension Fund LG Pension LG Pension Fund
    Northumberland Council LG Unitary Authority
    Northumberland Pension Fund LG Pension LG Pension Fund
    Oxfordshire County Council LG County Council
    Oxfordshire Pension Fund LG Pension LG Pension Fund
    Peterborough City Council LG Unitary Authority
    Police and Crime Commissioner for Hampshire LG Police and Crime Commissioner
    Police and Crime Commissioner for Kent LG Police and Crime Commissioner
    Police and Crime Commissioner for Thames Valley LG Police and Crime Commissioner
    Portsmouth City Council LG Unitary Authority
    Portsmouth Hospitals NHS Trust NHS Acute NHS Trust
    Sefton Council LG Metropolitan DC
    South Tyneside Council LG Metropolitan DC
    South Tyneside Pension Fund (Tyne & Wear) LG Pension LG Pension Fund
    Southampton City Council LG Unitary Authority
    Staffordshire County Council LG County Council
    Staffordshire Pension Fund LG Pension LG Pension Fund
    Southampton City Council LG Unitary Authority
    Suffolk County Council LG County Council
    Suffolk Pension Fund LG Pension LG Pension Fund
    Transport for London LG GLA and Functional Bodies
    Walsall Metropolitan Borough Council LG Metropolitan DC
    Wandsworth Borough Council LG London Borough Council
    Wandsworth Pension Fund LG Pension LG Pension Fund
    West Sussex County Council LG County Council
    West Sussex Pension Fund LG LG Pension Fund
  • EY UK meetings attendance

    The following table shows the level of attendance at EY board and committee meetings in FY 19.

    • Quarterly Board – UK LLP Board
    • IOC – Independent Oversight Committee
    • ROC – Risk Oversight Committee
    • AQB – Audit Quality Board
    • CCC – Code of Conduct Committee
    • UKAC – UK Audit Committee
    • PSC – Pension Sub-Committee
      Quarterly Board IOC ROC AQB CCC UKAC PSC
    Number of meetings in FY19 41 42 10 11 6 2 4
    Number of meetings attended              
                   
    Steve Varley 4            
    Omar Ali 3            
    Ian Baggs 4     8      
    Hywel Ball 4     10      
    Lisa Cameron 4   8        
    Christabel Cowling 33   9       33
    Sue Dawe 33           33
    Debbie O’Hanlon 3            
    Robert Overend 4     10      
    Lynn Rattigan 4           6
    Chris Bowles     10        
    Adrian Browne     65        
    Stuart Thomson     73        
    Bob Forsyth       11      
    Justine Belton       11      
    Rosemary Martin 13 13          
    Eamonn McGrath 13   53       23
    Tonia Lovell   13          
    David Thorburn 4 4          
    Sir Peter Westmacott 4 4          
    Colin Brown       10      
    Javier Faiz       9      
    John Headley       9      
    Michael-John Albert       10      
    Peter McIver       13      
    Andrew Walton       84      
    Sarah Williams3         6 13  
    Rute Aparicio         4    
    Kate Bamford         4    
    Colin Dempster         5    
    Dave Hales         5    
    George Hardy         6    
    John Liver         6    
    James Meader         4    
    Tim West         6    
    Douglas Nisbet           2  
    Lloyd Brown           2  
    Chris Voogd           2  
    Stuart Wilson           2  
    Angela Dawes             4
    Taylor Dewar             2
    Alisdair Mann             23

    1 Quarterly meetings are recorded here, but there are additional ad hoc meetings as and when required, and various decisions via electronic forums.

    2 Due to scheduling requirements, the Q1 FY20 IOC meeting was brought forward to 26 June 2019. To avoid double-counting this meeting, it is not recorded in this Transparency Report, but will be recorded in the FY20 Transparency Report.

    3 Given these individuals’ respective appointment/stand-down dates, they attended all possible meetings they could for this particular body, for FY19.

    4 Andrew Walton was appointed to the AQB on 6 September 2018 and attended eight out of a possible 10 AQB meetings for FY19.

Additional information

Interviews

To complement the EY UK 2019 Transparency Report there are six interviews you can watch. They cover various aspects of the TR’s contents, ranging from the current UK regulatory reviews into auditing and audit quality, to the work of the Independent Non-Executives and EY’s engagement with investors and other stakeholders. 

Contact us

The contact details for dialogue with listed company shareholders and listed companies about matters covered by the AFGC are:

Christabel Cowling, Partner, Audit & UK Head of Regulatory & Public Policy

David Thorburn, Independent Non-Executive and Chair of the INE Oversight Committee

Loree M Gourley, Director, Regulatory & Public Policy

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