Building trust in audit quality

In recent years there has been significant conversation about trust in business. We've learned that trust requires consistency, reliability and congruence - that we do what we'll say we'll do consistently over time. We've also learned that there is no trust without transparency. A commitment to transparency shines a light in places that might not regularly be spoken of - and it liberates new levels of learning and continuous improvement.

At PwC Australia we understand that the role we play as auditors in the capital markets is crucial to trust in business in Australia. It also means that we need to be conscious to ensure we strive to improve trust in our own profession.

In that spirit I'm delighted to share with you our 2020 Transparency Report. In addition to including the important elements of the systems and processes we have to strive to continuously improve audit quality, this year's report signals a significant move towards more transparency by including:

- the full Executive Summary of the first report of our new independent Audit Quality Advisory Board, including their recommendations and our proposed actions

- an updated version of our Audit Quality Balanced Scorecard which shares several measures of audit quality

- some reflections on the impact the COVID-19 pandemic has had on the way we audit, our industry and the potential impact of the interim recommendations of the Parliamentary Joint Committee (PJC) into the regulation of auditing in Australia released earlier this year.

Consistent with our message to the PJC last year, we understand the importance of our role and if there are changes that we can make that will help build trust in the profession and improvement financial reporting and audit quality we are committed to making them.

The June 2020 reporting season in Australia has been the most complex of my career. There has been more subjectivity, uncertainty and judgement required and the challenges of remote working have added to the need for agility for our Firm and for each of our clients and team members. I am incredibly proud of the work our PwC audit teams have done in unprecedented and difficult circumstances as we strive to play our role ensuring Australians are making their investment decisions based on reliable financial information.

I trust our 2020 Transparency Report shares some new perspectives for you on our efforts to continue to improve audit quality.