A message from our leadership
We are pleased to present the 2023 audit quality report of Ernst & Young LLP. Audit quality is a top priority for us. We invite you to read the highlights below and download the full report to learn more about the actions we are taking to drive audit quality over the short and long term.
We define audit quality as:
Being independent and objective and acting with integrity and professional skepticism
- Complying with professional standards, including exercising due professional care
- Deploying multidisciplinary teams, with appropriate skills and experience
- Identifying risks at the companies we audit and designing appropriate audit responses
- Leveraging a continuous improvement mindset, coupled with effective supervision and review, to pace our work and to address issues early
- Using innovative technology to deepen our understanding of a business and obtain better-quality
- Having honest, robust and timely communications with the audit committee and management
The result: Independent audit opinions that promote trust and confidence in the capital markets
A snapshot of key metrics
Percentage of newly promoted US audit partners and managing directors
Executing the audit
Percentage of US public company audit hours generated by EY US specialists
11,270 US audit professionals, by rank, including 66% seniors and staff, 23% senior managers and managers, and 11% partners and managing directors.
US professionals by rank who are women
Partners and managing directors: 35%
Senior managers and managers: 49%
Seniors and staff: 50%
US professionals by rank who are racially and ethnically diverse
Partners and managing directors: 14%
Senior managers and managers: 32%
Seniors and staff: 40%
45% of our newly promoted US audit partners and managing directors are women. 25% are racially and ethnically diverse professionals.
Executing the audit
1:6 ratio of Quality Network and Professional Practice partners and managing directors to all audit partners and managing directors.
18.7% of US public company audit hours are generated by EY US specialists, including 12.5% by IT, 4.2% by Tax, 1.2% by Strategy and Transactions and 0.8% by other specialists.
Highlights of the report
We are committed to performing high-quality audits that promote trust and confidence in the capital markets.
Learn more about the actions we are taking to improve the consistency of our audits and reinforce the cornerstones of our culture.
We are driving consistency in how we apply our audit methodology, how we manage and staff our audits, and how we use technology to help us understand risks and focus on what matters most in an audit.
Learn more about how we execute our audits.
We are committed to creating diverse teams and supporting our people with the career development opportunities, flexibility and benefits they need.
Learn more about how we are focusing on our people.
We support our teams by providing coaching, interpretive guidance and enablement. Our technical support groups also consult with them on difficult accounting, auditing, SEC and independence matters.
Learn more about how our Quality Network, Professional Practice group and other resources support our audit teams.
We monitor the effectiveness of our actions and perform robust root cause analyses of positive and negative audit performance. The results provide valuable information about how we can continuously improve audit quality.
Learn more about how we monitor our audit practice to inform our efforts to continuously improve audit quality.
The PCAOB inspection process provides us with valuable information we use to drive continuous improvement in our audit approach and to strengthen our system of quality control.
Learn more about our PCAOB inspection results.