The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

EY UK Transparency Report 2017

Welcome to EY’s 2017 UK Transparency Report

The EY 2017 UK Transparency Report, volumes one and two, can be accessed on this page of our website. Also included are highlights and related messages in a series of interviews to help draw your attention to some of the important matters covered in this year’s report. All of this material is published to provide a timely and relevant source of information about EY in general, and our audit business in particular.

The disclosures are extensive. For example, they explain our outlook and how we are structured and governed, including the role of our Independent Non-Executives and how we apply the requirements of the UK’s Audit Firm Governance Code. We refer to the quality of our audits and our commitment to recruiting, developing and diversifying our people and talent pool. We also explain how we manage our risks and remain innovative and technologically advanced in what we do and how we do it.

It has been a UK regulatory requirement since 31 March 2010 for auditors of certain public interest entities to publish one of these reports annually. The legal requirement was implemented in the UK by the Financial Reporting Council in accordance with the EU’s Statutory Audit Directive 2006, and rules mandated by EU Regulation 537/2014.

The combination of these regulatory requirements, and our genuine desire to be transparent, makes our 2017 UK Transparency Report a useful source of information. So for example, whether you are a company looking to switch auditor. An inquisitive investor. A professional looking for their next move. Or perhaps a young person keen to make sure their first move really counts – read on!

Steve Varley, EY UK Chairman and UK&I Managing Partner

The past 12 months have been defined by political and economic change and, as you will read in our 2017 Transparency Report, EY UK has continued to be at the side of our clients to help them navigate the ever-changing globalised world. We make a positive impact for our clients and other stakeholders by ensuring our focus on building a better working world is constant.

Steve explains that EY’s success over the last year is the result of a long-term global strategy, and to future-proof the business the firm has invested in new technologies and people. He says that clients want more innovative products and services in order to adapt to domestic and global economic trends, and it’s important that EY responds to this. He also refers to EY’s purpose – to build a better working world – and explains that this involves an increase in trust and confidence in business.

David Thorburn, Independent Non-Executive

As EY UK’s INEs, we take our public interest responsibilities very seriously and are committed to playing our part in improving confidence in the firm through promoting audit quality, maintaining EY’s reputation across all its service lines and minimising the risk of firm failure.

David refers to the culture of EY and the tone from the top, and says that these are the first aspects of the firm the INEs look at. From there the INEs consider the firm’s processes and procedures, and they look at examples of these activities to make sure they work as intended. He adds that apart from chairing the UK firm’s Independent Oversight Committee, he is also a member of the EY Global Governance Council and Chairman of its Public Interest Sub-Committee. While undertaking these roles he has also spent time engaging with UK regulators and investors, and for the year ahead David says that the INEs’ priority is embedding their framework and structure to help protect the firm.

Hywel Ball, UK&I Managing Partner, Assurance, and UK Head of Audit

In its role as a global leader for the profession, EY must be agile and adaptive, while also maintaining the assurance and stability that lies at our core. This year, EY UK has demonstrated that we have been able to respond to fast-changing market dynamics. We will continue to seize the opportunities offered up by this rapidly changing world, both for our business and our clients.

Hywel says that the biggest challenge facing the audit profession is how it deals with advances in technology and the explosion in data. He adds that we have to consider how we use this data to improve further the assurance provided in our audit opinions. In terms of issues, Hywel talks about the profession needing to understand what part it should play in helping business to regain the trust of society. He adds that this lack of trust is accentuated by short termism – a disconnect between markets driven by short-term metrics, and people and companies looking to invest for the long-term.

Lisa Cameron, General Counsel, Managing Partner Risk Management UK&I

The EY UK Board has overall responsibility for risk management and internal control over the entire business of EY UK. In discharging this responsibility, the EY UK Board periodically, and at least annually, conducts a review of the effectiveness of the firm’s system of internal control. The UK management team is responsible for implementing and maintaining the necessary control systems.

Lisa talks about risk management also being the responsibility of everyone in the firm, and that the firm seeks to prevent financial loss, regulatory action and reputational damage in everything it does. She adds that a Risk Oversight Committee was formed which oversees the most significant risks in the firm: operational, strategic and external. These risks are owned by different parts of the firm and the owners are required to put controls in place so these risks can be mitigated.

EY - 2017 Transparency Report infographic

  • Andrew Walton, UK&I Assurance Markets Leader, shares his views on how the audit market has changed
  • Christabel Cowling, Chief Operating Officer of the Assurance Business in the UK, and Audit Partner, talks about EY’s investment in its people
  • Eamonn McGrath, UK Head of Regulatory & Public Policy, and Audit Partner, outlines EY’s engagement with UK regulators and policy makers.
  • Loree Gourley, Director, UK Regulatory & Public Policy, explains how EY engages with investors

Download our UK Transparency Report 2017 Infographic

EY - UK Transparency Report 2017 InfographicUK Transparency Report 2017 Infographic

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