2021 Transparency Report for Deloitte Africa
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2021 Transparency Report for Deloitte Africa
2021 Transparency Report 2021 Transparency Report
Our Purpose Our Brand
Deloitte people are motivated by a Purpose: to make an impact How we do it – inspired by what we know to be right
that matters. Our Purpose recognises that we exist because
• Stand firm for doing the right thing
businesses and governments respect us, capital markets trust
us, people want to work with us and society benefits from the • Deliver nothing short of the best
value we add.
• Treat our clients and colleagues with genuine respect
What we do – driven by our will to be best • Reward merit alone; encourage growth, pride and
• Serve the public interest achievement for all
• Seek the hardest questions as ours to answer • Behave as one
• Lead the way – forge ideas that bring clarity, solutions that create • Make the world better by our actions – community
tangible value and innovations that define the future by community
• Help bring about our clients’ proudest moments
Our Shared Values
Our Shared Values underpin our culture – a culture with integrity and professional conduct at its core. This culture is reinforced
from the very top of the organisation and evident in the behaviour of our professionals, not only across Africa, but around the
globe.
Lead Serve with Take care of Foster Collaborate for
the way integrity each other inclusion measurable
impact
Our brand is defined by the high-quality
services we deliver. Quality is the foundation
of our profession and the bedrock of our
strategy. Our relentless pursuit of quality
Deloitte is the leading We believe in doing the We place a premium on We are committed to We approach our work
professional services
organisation in the
right thing – always. That
is the guiding force
respect, fairness, and
trust – working together
attracting, retaining, and
advancing a diverse
with a collaborative
mindset, teaming
and commitment to advance the profession
world for a reason.
Our scale and scope
behind every decision we
make and every action we
to achieve our
aspirations. We recognise
workforce, while fostering
an inclusive culture where
across businesses,
industries, geographies,
defines not just what we do, but who we are.
is unmatched, take. By acting ethically potential, value varied our people feel a sense of and skill sets to
enabling our people and with integrity, and skill sets and experience, belonging and can grow. consistently deliver
to consistently serve serving as role models in reward performance, and Accelerating diversity in tangible, measurable,
clients with our communities, Deloitte provide opportunities for leadership and attributable impact. We
distinction and help has earned the trust of growth and leadership. strengthening our culture play a critical role in
shape professional our stakeholders. We prioritise wellbeing, of inclusion requires helping clients and
services for the Upholding that trust is and we empower our ongoing attention and capital markets operate
future. our single most people through deliberate action, and we more effectively.
important responsibility. mentorship and are steadfast in our
sponsorship. commitment.
B C
2021 Transparency Report 2021 Transparency Report
Contents
Message from our Chief Executive Officer 4
Embracing a responsible business mindset 6
Our quality journey 8
Promoting our People & Purpose agenda 14
Financial information 16
Reputational matters 17
Living our Purpose by making a positive impact
for people and society 17
Appendix:
Governance 20
Deloitte Africa structure 22
Africa Board and Executive Committee 24
D 1
2021 Transparency Report 2021 Transparency Report
2021 Transparency Report at a glance
Key highlights Our Diversity,
Equity and
Inclusion strategy
This 2021 Transparency Report demonstrates is monitored by a Steering
our commitment to a culture of integrity, Diversity, Equity Committee comprising the
professional excellence, accountability and quality. and Inclusion Africa Executive, a Board
The ALL IN
achievements representative and
Sponsorship Wave Partner/director compensation
Maintaining trust through transparent stakeholder include: members from the
initiative was launched, with
implementation team. The average total compensation per partner/director in the year
engagement is a key priority for Deloitte Africa. Transformation
22 high performing women
ended 31 May 2021 amounted to R4.5 million before tax
in the programme. The
(South Africa) (31 May 2020 R4.0 million before tax).
All information provided in this report relates to the position of Deloitte Africa for purpose of the programme
31 May 2021 year-end unless otherwise indicated. is to accelerate women into % Gap (mean per level)
senior leadership roles.
2021 White/Black * Male/Female**
Black 59%
2020 White 41% Grading (FY21 number
Black 59%
FY21 FY20 FY21 FY20
of partners/ directors)
White 41%
1-2 (199) 7% 7% 9% 6%
Deloitte Africa
3-4 (118) 4% 0% 9% 5%
Total number of staff 6727
5-6 (5) -43%*** -42%*** - -
Total number of partners and directors 329 Respect & Inclusion Total (322) 19% 21% 18% 19%
Total of skilled professionals across Africa 5 304 Engagement labs, a global
initiative aimed at fostering an * White/Black % gap for partners/directors of the South Africa
inclusive leadership culture, have Practice.
been delivered to the full partnership ** No female representation at grading levels 5 and 6.
*** Black partners’/directors’ earnings in this grading are more
body across Africa. than that of their white counterparts.
Gender equality
ownership (Africa) Female ownership across
Africa increased from 32% on 31 Ownership
May 2020 to 34% on 31 May 2021, 2020 (South Africa)
while South Africa increased from 33% Black 43%
White 57%
to 36%.
2020 2021 Female representation on the Africa
Board increased from 30% on 31 2021
Male 68%
Female 32%
Male 66%
Female 34%
May 2020 to 39% on 31 May 2021.
Black 43%
White 57% Our commitment to quality
Quality informs every aspect of our business and is the bedrock of our strategy. Our pursuit of quality is at the centre of our culture of
continuous improvement and innovation.
Gender equality Gender equality
ownership (South Africa) (Africa)
Audit & Assurance
FY21 financial highlights In our Audit & Assurance business, the primary measure of quality is the outcome of external reviews by regulators. The South African
regulator, the Independent Regulatory Board for Auditors (IRBA), regulates most of our audits and the results of their reviews are
presented below.
Revenue in R’million*
2020 2021 2020 2021 2019 2020 2021
Deloitte Africa:
Male 67% Male 64% Male 49% Male 48%
Female 33% Female 36% Female 51% Female 52% R6,190m Good and acceptable audit quality
100
Advisory-only clients:
R2,264m
80
60 We are proud of
Audit-only clients: 40
R1,373m 20
* *
• Our progress towards being the audit quality leader.
• 78% good/acceptable quality results.
0
Deloitte Other big 3 JSE accredited
* The split between Advisory-only • Decrease in the number
clients and Audit-only clients *IRBA 2021 report not available to determine comparisons
represented above is for the firm’s
Top 200 clients, who constitute
While we made significant progress in our audit quality journey, we still have some work to do to achieve a consistent level of quality,
the majority of the revenue.
and we recognise that the quality benchmarks are also evolving.
2 3
2021 Transparency Report 2021 Transparency Report
Message from
our Chief Executive
In this report, we have challenged These improvements are across both our Audit and Advisory businesses), we a firm, we are also fully committed to
ourselves to go further in meeting this Audit and Advisory businesses. As a result, constantly need to balance our mandate as utilising the resources at our disposal to
stated objective. We have, therefore, we have a firmwide Quality Leader whose Auditors and our duty to serve as strategic make a meaningful contribution to our
redesigned the report to achieve the mandate is to determine appropriate and advisors to our clients. To maintain our societies. For this reason, we have also
following: comprehensive quality measures across all independence and protect the integrity of made our Responsible Business mandate
our businesses and drive execution. our business, we have very strict protocols an essential part of our decision-making
• A significantly shortened report
Furthermore, we undertook a to ensure that any interactions between process. This is at the core of our purpose
which focuses on the key areas of
re-imagination of our Audit quality process our Audit and Advisory businesses is for statement - Making an Impact that Matters.
accountability we have identified.
with active direction and support from the sole purpose of enhancing our audit
The journey ahead
• Clearly articulated key metrics per Deloitte Global and the Deloitte Africa product by availing specialist skills in key
accountability areas against which we Executive Committee. areas, as part of the audit process. I have been reminded this year that, while
will measure our progress and report on we might not always be prepared for
As a result of this concerted effort and The ecosystem and our role in the
yearly. certain events along our journey, the
focus on quality, we are already beginning profession
resilience and strength of our people is one
• Broadening the scope of the report to see quality green shoots and we are well
While addressing our internal issues, we of the most valuable assets. I strongly
to cover the Africa firm and thus on our way to being the quality leader. The
also recognise broader considerations that believe in the ability of our people. I also
departing from a South Africa focused report highlights the strides we have made,
require collaboration across the entire place a lot of faith in the fact that, through
Transparency Report. Whilst we have which have led to our positive quality
ecosystem. International committees, such their commitment to our Shared Values,
managed to achieve this in some results. We are determined to ensure that
as the Sir Donald Brydon Review, have ingenuity, innovativeness, and
of our key areas, there is still work we achieve similar results across all our
endeavoured to unpack the causal factors overwhelming desire to contribute towards
to be done to enhance our internal businesses and regions in the future and
for audit and corporate failures. In their upholding public interest, we can position
systems to ensure that we can provide undertake to report on our continuous
conclusion and recommendations, they this firm and our profession to continue
comprehensive reporting across all our progress.
emphasise a need for a holistic approach playing a meaningful role in our society.
regions and businesses.
Lwazi Bam The profession and our to addressing audit reforms. Therefore, the
Chief Executive Officer We believe this approach provides a multidisciplinary model broader ecosystem is critical in creating an
Deloitte Africa powerful foundation and will serve us well environment that enables the audit
The continuous scrutiny of the profession,
in prioritising the enhancement of our profession to deliver on its responsibilities
whilst intense and uncomfortable, is
systems to improve how we measure and to uphold the public interest.
warranted. Trust is the ultimate currency
report on our identified metrics. our profession trades in and when that The collaboration with clients, business
The COVID-19 pandemic has been one of I, therefore, encourage you to continue to trust is under threat or diminished, we organisations, regulators and governments
the toughest periods for our generation. Its hold us accountable on these measures need to act decisively. In determining a to respond to COVID-19 has served as a Lwazi Bam
resultant effects on our personal lives, and highlight any other matters you wish us fitting response, we must avoid the great example of partnering with others to
society, and our economies will linger for a temptation of superficial “quick fixes” and achieve more. This presents a possible Chief Executive Officer
to engage on further.
while. Meanwhile, a lot is still unfolding in revert to first principles. I believe these model that can be employed to fast track Deloitte Africa
our profession. The last few years have Our quality journey – quality green principles are the key to addressing the audit reforms. As a firm, we are
revealed significant parts of our business shoots fundamental core issues at a firm level, for committed to playing our part to advance
that need to evolve to meet the times we Quality remains a key metric that we will the profession, and the broader business these conversations to develop tangible
are living in and meet society’s continue to enhance and monitor. We have landscape. and sustainable solutions.
expectations. been on a continuous quality improvement Our reputation matters afforded us an The reforms in the audit profession are
It is against this backdrop that we publish journey to address internal deficiencies opportunity to reflect on our role and to happening at a time when the business
the 2021 Africa Transparency Report. The where necessary. We have also introduced not only set ourselves on a self-correcting community is also grappling with its
main objective of this report is – to be forward-looking measures meant to path but to broadly think about how we can relevance and being a net contributor to
transparent and accountable on matters anticipate and address the changing nature make a meaningful contribution to society. Therefore, as we chart a way
that are top of mind to our stakeholders. of our clients and capital markets, as well reforming the profession. Whilst Audit forward for the profession, it is critical that
as our stated desire to act in the public’s remains central to this ambition, as a we find appropriate mechanisms to bring
interest. multidisciplinary business (covering both the public along with us on the journey. As
4 5
2021 Transparency Report 2021 Transparency Report
Embracing a responsible business
mindset
Our commitment to responsible business practices is guided by Trust in the Profession • Deloitte has been an active participant in the South African
our Purpose and Shared Values. The responsible business Auditing Profession Trust Initiative (SAAPTI) since its inception in
As a prominent player within our ecosystem, we believe an
principles we have adopted and the commitments we have made 2018. SAAPTI is a voluntary profession-wide initiative which aims
important part of being a responsible business and living our
to our key stakeholders are outlined in our Responsible Business to proactively respond to the challenges faced by the auditing
Shared Value of leading the way is to use our voice to advance
Practices Statement. This statement provides a common profession and re-earn trust therein. A key effort of the SAAPTI is
relevant matters of public policy. With audit at the heart of our
understanding of what living our Purpose means in terms of the a Discussion Paper comprising 32 Considerations regarding
business, we recognise the important role we play in maintaining
business practices we engage in. As a firm, we respect and re-earning trust in the profession. SAAPTI undertook a
trust and confidence of the capital markets. As such, restoring trust
appreciate the intricate interdependencies between business and comprehensive engagement process on the Discussion Paper
in the audit profession and wider business accountability
society. We acknowledge the responsibilities we owe to the public. with the profession (including small, medium, and large firms) as
ecosystem has been a key focus area of our public policy efforts
Elevating the public interest on the leadership agenda is a priority well as other stakeholders including Townhalls and one-on-one
over the last few years. We proactively and constructively engage
of the firm. To this end, the firm has appointed a Managing Partner discussions with key stakeholders such as National Treasury,
key stakeholders, including government and regulators to
for Responsible Business and Public Policy who forms part of the South African Institute of Chartered Accountants (SAICA),
contribute towards building a stronger business accountability
firm’s Executive Committee. Independent Regulatory Board for Auditors (IRBA), the Auditor
ecosystem that serves the public interest.
General, the investor community (ASISA), Business Leadership
Company we keep
Deloitte Public Interest Council South Africa (BLSA), the Institute of Directors (IoDSA), the Audit
A crucial step to drive responsible business is the intentional Committee Forum, the Johannesburg Stock Exchange (JSE), and
The Deloitte Africa Public Interest Council was established in 2019
consideration of the company we keep as a firm – both who we others.
to help the firm further understand the impact of our activities on
work with and the work we do. This is assessed against our values,
the public interest, through constructive engagement with • On 1 June 2021, we hosted a virtual fireside chat with Sir Donald
the impact on our people, clients and society. Notable progress in
individuals bringing perspectives of business, civil society, and Brydon on UK Audit Reform and the ripple effect internationally.
this regard in FY21 includes the following:
government. Sir Brydon is the author of the landmark 2019 Brydon Report on
• Activation of the firmwide Responsible Business Decision-making The Public Interest Council is comprised by non-Deloitte individuals the quality and effectiveness of audit in the UK, submitted to the
Framework: that comes from wide and varied sectors of society. These UK Secretary of State. The event was attended by key
– The firm implemented a structured responsible business individuals are not remunerated for the role to enhance their stakeholders in the profession to further the conversation on an
assessment across all our businesses and internal functions independence. improved corporate reporting ecosystem in South Africa. Key
to help us think through the public interest impact of the takeaways from the discussion can be accessed here.
Three meetings were held with the Public Interest Council in FY21
decisions we make regarding who we work with and the work • We play a critical role in shaping legislation and regulation to
covering key topics for Council input including Responsible
we do. support a trusted financial reporting ecosystem in South Africa
Business Decision-making Framework, the firm’s response to
– The establishment of the Responsible Business Committee to by actively participating in the amendment process to the
COVID-19, and our public policy approach to the business
adjudicate challenging responsible business matters escalated Auditing Profession Act and JSE Listing Requirements, advocating
accountability ecosystem.
by the business. for constitutional balance in the regulatory measures for
– Notable efforts in this regard include: investigation and enforcement practices pertaining to auditors
• We advanced the position on the state of the South Africa audit and for more clearly defined responsibility and accountability for
profession by facilitating a public debate with key stakeholders top management with regard to the financial statements and
on addressing the audit expectation gap, promoting trust and financial controls.
confidence in the corporate reporting ecosystem, and ensuring
due consideration of global audit developments. Key stakeholder
engagement in this regard included interaction with government,
regulators, professional bodies, and members of the profession.
6 72021 Transparency Report 2021 Transparency Report
Our quality journey
Quality informs every aspect of our Appointment of a Quality Leader Operational excellence Considering the company we keep
We have appointed a firmwide Quality Leader to ensure consistent
business and is the bedrock of our oversight and reporting across our business. • Implement a world class system of • Africa risk-sensing group supported by technology –
strategy. Our pursuit of quality is at How we measure quality?
quality management that supports quality, enabled risk-sensing capabilities.
transformation and related operational objectives • Africa client review board to drive deliberate and
the centre of our culture of continuous Given our multidisciplinary model approach, the measurement of and global consistency. consistent changed behaviours in our client acceptance
improvement and innovation. quality differs across the businesses, but in all cases we identify root • Continue to evolve and support the quality and continuance process.
causes of inadequate quality and implement measures to remediate and risk infrastructure for our Audit & • Improved guidance and support to drive consistent high
those causes. Our reporting that follows focuses on the primary Assurance business. quality response to take on procedures and know your
In previous reports, we have focused primarily on our audit
quality measurements for our businesses and how we have client processes.
quality journey. As part of our commitment to being a
performed against those measures during the past financial year.
responsible business, we have expanded our Transparency • Accelerated approach to address emerging issues and
Report to include our quality journey across all our Holding ourselves to account changing stakeholder expectations.
businesses.
Audit • Active, visible leadership commitment.
• Since inception of the Client Review Board, 320 clients
have been reviewed, 12 engagements were terminated
The International Auditing and Assurance Standards Board • Mindset inspired by purpose, ethics, professional due to undesirably high risk of association and enhanced
(IAASB) Framework for Audit Quality acknowledges that “there In our Audit business, the primary measure of quality is the pride. risk mitigation plans were developed for a significant
is no definition or analysis of [audit quality] that has achieved outcome of external reviews by regulators. Making sure audit
• Dedicated audit quality monitoring and number of clients.
universal recognition”. The same is true for the quality of our quality keeps pace with emerging economic, business, and
measurement capability to provide a level of • 343 Client Review Boards are scheduled across Africa
advisory services. Nevertheless, in our view, we deliver quality regulatory conditions, as well as technological advances is critical
internal assurance to leadership. for the 2021 calendar year. 11 (6% of client review
when we meet or exceed the expectations of our to the continual enhancement of our role in protecting public
stakeholders, including, in particular, the public and our interest and supporting the effective functioning of the financial • Incentivise and reward commitment to quality. boards held in 2021 thus far) client relationships were
clients. ecosystem. Our brand is defined by the high- quality audits • Accountability framework that defines our terminated or opportunities not pursued.
delivered and by the unwavering commitment to continuous approach and response to acknowledging and
To paraphrase the IAASB’s Framework for Audit improvement. remediating deficiencies at both systemic (firm) and Executing better quality audits &
Quality: individual (partner) level. continuous improvement
Deloitte embarked on an Audit Future-Fit project which cast a
A quality service is likely to have been delivered by an spotlight on the areas within our business where intensified and • 11 partners who had poor quality history, as at
• Evolving quality & risk infrastructure to achieve
engagement team that: prioritised actions would allow us to significantly enhance our February 2020, are no longer with our firm.
greater consistency.
• Exhibited appropriate values, ethics and attitudes; overall system of quality management and drive a superior
quality experience. The Deloitte Future-Fit Audit Journey Below is the results of our Audit Accountability • Continued investment in emerging technologies,
• Was sufficiently knowledgeable, skilled, and experienced Framework for this year. capabilities and diversity of thought that enables the
provides detail on some of the actions taken and provide a focus
and had sufficient time allocated to perform the work; delivery of enhanced quality, insights & value to our
on the measures we have taken to improve audit quality. Below
• Applied a rigorous process and quality control procedures we outline our quality strategic objectives to continuously build 7%
clients and the markets.
that complied with law, regulation and applicable standards; capabilities to support the delivery of high-quality audits and 10% • Intensive focus on ways to help our professionals
• Provided useful and timely reports; and make leading contributions to shape the future of the audit apply professional scepticism in practice.
• Interacted appropriately with relevant stakeholders. profession. • Improved engagement team support in key areas of
83%
judgement and rigorous engagement quality control
This report focuses on the steps we have taken and are review response.
Culture of quality
implementing to further enhance quality across our • Enhanced workforce planning, skillset and capabilities
businesses. • Strengthen our culture of quality and excellence, of audit professionals (now and in the future).
While we made significant progress in our audit quality encourage, and support habitual behaviours that
demonstrate the ethical, challenging, sceptical mindset of Good quality
journey, we still have some work to do to achieve a consistent
Improvement required
level of quality, and we recognise that the quality benchmarks our people and pride in our profession.
Significant improvement required
are also evolving.
Significant
Audit excellence Good Improvement
improvement
quality required
required
• Build eminence with respect to the profession and South Africa 106 5 4
regulatory environment, lead and/or contribute to debates East Africa 8 2 1
that will architect the audit product of the future through West Africa 14 2 2
the lens of public interest. Southern Corridor* 12 7 5
• Generate clear market reputation that Deloitte leads * Botswana, Malawi, Mozambique, Namibia, Zambia and
Zimbabwe
the profession in the quality of our audits and in serving
public interest.
• Apply the Deloitte Way, our globally consistent approach
to the execution of audits, including adoption of quality
– enhancing transformation components and global
technology platforms.
8 92021 Transparency Report 2021 Transparency Report
The South African regulator, IRBA, regulates most of our
audits and the results of their reviews are presented below.
IRBA Individual Inspections IRBA Firm Inspection Themes
Embracing external inspection results presents an opportunity to IRBA Firm Inspection Themes
gain insight into potential deficiencies existing within our system of
quality management and work towards solutions that drive 23 The number of types of Total number of sections
continuous improvement in audit quality. IRBA performed an These reviews are performed annually, using a risk-based sections reviewed by the IRBA reviewed by the IRBA*
inspection under their seventh inspection cycle from 11th January approach, with a focus on engagements and audit areas where
2021 to 16th March 2021 (2019, 2020 and 2021). deficiencies are likely and areas that if not appropriately responded Number of types of section The average number of sections
to by the auditor, create a risk of an inappropriate auditor’s report reviewed that had findings reviewed by the IRBA on a file
being issued. *A specific phase of the audit process, for example planning or completion, or the audit work performed over
a material account balance or class of transaction.
The objective of IRBA’s individual assurance engagement We are pleased with the overall improvement in the reduction of
file inspections is to monitor the firm and its engagement the number of deficiencies identified on engagement files over the
partners’ compliance with the International Standards on last three years, especially in the light that various engagement files As a result of the IRBA’s individual assurance engagement file inspections the following reportable Recurring
deficiency themes were identified for Deloitte to remediate. theme
Auditing, codes of conduct and legislation in performing inspected in 2021 were executed during the COVID-19 lockdown in
assurance work of a consistent, sustainable high quality. a virtual environment.
2019 2020 2021
2019 2020 2021 Financial Statements Engagement Quality
Good and acceptable audit quality Quality Control Impairment – Disclosure Control Reviews Audit Procedures
Good and acceptable audit quality System of Assets Deficiencies (EQCR) – Revenue
100
100
80 17 of the 23 files had 4 of the 23 files have Inadequate review of 12 of the Inadequate
80
one or more significant reportable deficiencies financial statements engagement files procedures/
60
60
We are
We areproud
proudof
of deficiency reported to relating to inadequate disclosure as required reviewed have documented audit
40
40
• Our progress towards being the audit quality leader. the firm. audit evidence to by relevant accounting reportable findings in evidence to ensure
20 • Our progress towards being the audit quality leader.
20 *
*
*
* support deviations framework. areas that are within sufficient testing of
0 •• 78%
78%good/acceptable
good/acceptablequality
quality results.
results. from impairment of the scope of the EQCR. revenue.
0 Deloitte Other bigbig
3 3 JSE accredited
Deloitte Other JSE accredited
•• Decrease
Decreasein
inthe
thenumber
number
assets accounting
*IRBA*IRBA
2021 2021
report not available
report to determine
not available comparisons
to determine comparisons
standard (IAS 36).
Our response Our response Our response Our response Our response
12
12
78%
78%
23
We have made several We continue to We have implemented We have designed and We have deployed
Listed
Listed entity
entity group
group being“good
being “goodquality”
quality”or
“acceptablequality”
“acceptable quality”
or
23selected
selected strategic quality
investments to improve
enhance our guidance
and learning to ensure
a proactive, consistent
review process on
embedded an EQCR
engagement support
enabling tools to the
practitioners, additional
2019
2019 2020
2020 2021
2021 our quality control consistency of financial statements centre of excellence, guidance on the testing
Listed clients inspection results 7th cycle inspection results practices. application and which encompasses a enhanced training and of information
Listed clients inspection results 7th cycle inspection results
60 60
documentation within number of measures learning and produced by the entity
60 60 our engagement files. such as completions of implemented and have planned
50 50
50 50 the full IFRS checklist, engagement quality additional learning to
40 40
40 40 use of the firm’s IFRS control reviewer be delivered to all
30 30
30 30 team, additional assistants. practitioners relating to
20 20
20 20
reviews for listed the audit of revenue.
10 10
entities as well as
10 10
0 Good quality (no Acceptable Poor quality Fundamental 0 Good quality (no Acceptable Poor quality Fundamental specific training to
0 (referral to 0 Good (referral to
Good further
quality action
(no quality (some
Acceptable Poor quality Fundamental further action(no
quality quality (some
Acceptable Poor quality Fundamental practitioners.
improvement investigation) improvement investigation)
furtherrequired)
action improvement
quality (some (referral to required)
further action improvement
quality (some (referral to
required) required) investigation) required) required) investigation)
required) improvement improvement required) improvement improvement
required) required) required) required)
10 112021 Transparency Report 2021 Transparency Report
Our Consulting
business effort in order to meet stakeholder
primarily measures the cost of expectations. A lower cost of
quality on an ongoing basis to quality is indicative of better Financial Advisory measures quality
monitor quality delivery. Cost of quality processes. through internal practice reviews. The table below
quality (CoQ) is a measure of actual Note: this is South Africa only, depicts our practice review outcomes for 2019 and
effort required relative to planned which comprises 90%+ of our 2020*.
Systems of quality Africa Consulting Revenue. Practice reviews
Deloitte global
Additionally, we currently focus
benchmark – 3.2%
Moderate
cost of quality measures on larger
findings
findings
findings
A continued focus on audit quality is of paramount importance to In 2021, IRBA did not perform a firm inspection of our quality Review
# engagements
Minor
Major
the Deloitte brand. Our audit quality monitoring and measurement control processes, however the IRBA uses the results of the assignments. Even though we do period
program is focused on driving: engagement file inspections as an indicator of the effectiveness of not perform CoQ for the East and
the system of quality control. West Africa regions currently, we FY20 17 4 8 2
• Continuous, consistent and robust monitoring of completed do perform the required Quality
We are pleased with our systems of quality results as they FY19 22 31 6 4
engagements. Assurance Reviews on
showcase the power of our quality systems and the resilience of engagements. We are in the FY20 average of 0.8 findings per engagement
• Fundamental understanding of deficiencies and timely execution our people while working in unprecedented times during the process of updating our systems FY19 average of 1.9 findings per engagement
of corrective action. COVID-19 pandemic. 3.82% 3.22%
to ensure that we able to report on
• Greater transparency and consistency in reporting key measures the CoQ for all our regions in Guidance to ratings
FY21 (Year-End) FY20 (Year-End)
of audit quality to relevant stakeholders. 182 Engagements 114 Engagements future. 1 No exceptions
2 Minor isolated exceptions
3 Minor exceptions on more than an isolated basis/
Tax & Legal measures quality through internal practice reviews.
moderate exception
The appropriateness of the design, implementation, and
effective operation of our system of quality control is
We are proud of The table below depicts our practice review outcomes for 2019 and 2020*.
4 Exceptions on a frequent basis/major exception
The results are split between compliance testing, which is adherence to
monitored through two key quality monitoring policy and quality testing.
• Significant improvement in the
inspection processes, namely:
systems of quality results. Quality
Risk Advisory measures quality through
Compliance Testing internal practice reviews. The table below depicts
Testing – Findings
• Deloitte internal inspection, overseen by an allocated – Findings Summary
• Investment in monitoring systems. summary our practice review outcomes year-on-year
senior audit partner from an independent Deloitte member Africawide*.
# engagements
• Investment in systems of quality control.
Minor findings
Minor findings
Major findings
Major findings
Review period
firm (Canada), as mandated by our Deloitte policies manual;
We are proud of Scores are calculated based on a set of predetermined
No findings
No findings
and
Moderate
Moderate
questions. Each question is assigned a weight from
findings
findings
Region
• The IRBA, who conduct inspections in accordance with • in the systems of quality results. 1 to 3. Individual question scores are then summed to
International Forum of Audit Regulators (“IFIAR”) Core • Investment in monitoring systems. determine the total points accumulated. A final grade
Principles and as mandated by Section 47 of the APA. • Investment in systems of quality control. percentage is then calculated as a percentage of the
South 25 20 4 1 - 23 - - -
total points accumulated divided by the total points
Southern 3 3 - - - 3 - - - available for the review.
East 3 - 3 - - 3 - - -
FY20
2020 practice reviews
Deloitte Internal Systems of Quality Control Inspections West 9 9 - - - 9 - - -
62 21
Total 40 32 7 1 - 38 - - - Rating Average overall Total
Systems of quality Level assessment number of
control processes processes tested Total % 80% 18% 2% - 95% - - - grade engagements
South 18 14 4 - - 17 1 - -
47 tested in the prior year Green + 99 - 100% 7
Southern 6 - - 6 - 3 - 3 -
11 257 Person-hours Green 90 - 98.99% 11
East 6 6 - - - 6 - - -
FY19
(2019: 14 768 person hours) across
West 13 10 - 3 1 13 - - - Yellow + 80 - 89.99% 0
23% Total 43 30 4 9 - 39 1 3 - Yellow 70 - 79.99% 0
On average 299 hours (2019: 45%) were
(2019: 174 hours) were spent per needs improved Total % 70% 9% 21% - 91% 2% 7% Red 0 - 69.99% 0
29%
(2019: 23%) were • Minor – failure to complete a process within the required timelines and 2019 Practice reviews
acceptable with there is no absolute disregard of process or policy or where there is an
21 48% opportunities for 0%
(23 partners) in South Africa (2019: (2019: 6%) inaccurate or negligent completion of a process. Rating Average overall Total
(2019: 26%) enhancement
39 partners) were reviewed. • Moderate – a breach of DTTL Global Policy which is not a breach of a Level assessment number of
acceptable
improvement. regulatory or professional standard or non-compliance of Risk, grade engagements
Independence & Legal or Tax & Legal rules process or policy. Any minor Green + 99 - 100% 7
The significant advancements and intensified, prioritised actions we have embedded in our business to accelerate quality improvement has
failures where there was a complete disregard of a process or policy. The
positively supported us in continually and relentlessly raising the standards of quality to serve the public interest.
incident does not result in a financial loss to the member firm. Green 90 - 98.99% 14
Key observations from our systems of quality review • Major – a breach of a regulatory or professional standard and any Yellow + 80 - 89.99% 2
The quality control processes identified for continuous improvement were incorporated in the changes to our business model and audit quality incident which results in a financial loss to the member firm, investigation
investments. by a Regulator or Professional body and an adverse reputational effect Yellow 70 - 79.99% 1
on Deloitte. Red 0 - 69.99% 2
12 * FY21 numbers currently still being finalised and not available at time of publication. 132021 Transparency Report 2021 Transparency Report
Promoting our Our Diversity,
Equity and
People & Purpose
Inclusion strategy
is monitored by a Steering
Diversity, Equity Committee comprising the
agenda and Inclusion Africa Executive, a Board
The ALL IN
achievements representative and
Sponsorship Wave
members from the
include: implementation team.
initiative was launched, with
22 high performing women
Transformation
in the programme. The
(South Africa)
purpose of the programme
is to accelerate women into
Our commitment to promoting our People & Purpose
agenda FY2021 measures 2021
Black 59%
senior leadership roles.
2020
Our people and our culture are our greatest asset. We create White 41%
Black 59%
opportunities for graduates and experienced professionals alike White 41%
to be part of a vibrant and diverse organisation, to work with
Deloitte Africa
people who are forward thinking, collaborative and committed
Total number of staff 6727
to making a difference. We are known as an employer of choice
for our commitment to diversity, equity, inclusion, development, Total number of partners and directors 329 Respect & Inclusion
and wellbeing. We remain steadfast in meeting the needs that Total of skilled professionals across Africa 5 304 Engagement labs, a global
people value today and into the future by delivering unparalleled initiative aimed at fostering an
experiences to our professionals that allow them to enhance inclusive leadership culture, have
their existing capabilities, gain new skills, explore new career been delivered to the full partnership
paths, and continue delivering a multidisciplinary model of Gender equality body across Africa.
services of the highest quality. ownership (Africa)
We are committed to a diverse workforce and inclusive culture Ownership
where our people can make an impact, individually and (South Africa)
2020
collectively. This collaborative and high-performance culture Black 43%
drives us to invest in our people, giving them opportunities to White 57%
grow, thrive, and achieve their professional goals. We offer a 2020 2021
We are proud to report on the following
variety of internal and external learning programmes, in addition
Male 68% Male 66% 2021
Transformation achievements:
to development programmes and global mobility opportunities. Female 32% Female 34% Black 43%
Gender equality White 57% Level 1 B-BBEE scorecard rating maintained with 108.84 points.
Our commitment to Transformation, Diversity, Equity and
(Africa) We maintained a Level 1 B-BBEE rating for the past 5 years.
Inclusion is widely recognised
Gender equality
Our Transformation, Diversity, Equity & Inclusion strategy is ownership (South Africa)
Black ownership in South Africa remained unchanged at 43%.
underpinned by the principles of respect and inclusion. Specific Black African ownership in SA increased from 18% to 20% and Black
focus areas include gender, LGBT+, Broad-based black economic African female ownership grew from 7% to 9%.
empowerment (SA) and employment equity (SA).
2020 2021 Learnerships for people with Our Enterprise Supplier Development
We have a number of initiatives where we hold ourselves
Male 49% Male 48% disabilities Programme is developed to create audit sub-contracting
accountable and have developed a set of metrics to measure Female 51% Female 52% opportunities and provide for employee time spent on training,
2020 2021 We have invested over
the impact against our strategy set out. These include: coaching and mentoring engagements with the beneficiaries.
• An ALL IN gender goal setting, monitoring and reporting
Male 67%
Female 33%
Male 64%
Female 36% R25 million Our High-Performance Leadership Programme
in this project since our
scorecard (designed to deliver exceptional experiences by has supported 44 candidates over 3 years, of which 20 participants
commencement in 2016.
outlining Deloitte’s commitment to diversity and inclusion have been promoted into senior leadership roles.
which includes accelerating the representation of women in Our collaborative and ongoing engagement with the Department of
leadership roles) Employment and Labour supports our Employment Equity
• Broad-Based Black Economic Empowerment (B-BBEEE) efforts and ensures we are aligned with the latest legislative
Female ownership across Africa increased developments and best practices in this space.
scorecard
from 32% on 31 May 2020 to 34% on 31 May 2021,
• Sponsorship Wave programme for accelerated development while South Africa increased from 33% to 36%. These achievements are testimony to our commitment to
of women leaders in our organisation Transformation and to achieving our 2025 goals of 48% black
Female representation on the Africa Board ownership in South Africa and 40% female ownership. Our success to
• Learnerships for persons with disabilities increased from 30% on 31 May 2020 to 39% on 31 May 2021. date indicates we are on the right track and encourages us to continue
• GLOBE Africa committee (LGBT+ network) Making an Impact that Matters in transforming our firm.
• Employment Equity consultation process, plan and reporting.
14 152021 Transparency Report 2021 Transparency Report
Financial information Reputational As we move forward, we fully subscribe to Winston Churchill’s
notion – “Never let a good crisis go to waste”. As such, we have
Our financial performance reflects the success of our Partner/director performance is evaluated, beginning with the
matters taken these incidents as an opportunity to reflect, self-correct and
go further by sharing our experience and lessons. On African Bank,
the lead Partner has committed himself to playing a pivotal role in
multidisciplinary model. It drives the delivery of audit, consulting, Africa Board’s approval of the total remuneration strategy championing commitment to quality through sharing his own
financial advisory, risk advisory, and tax & legal services. proposed by the Africa Executive Committee and concluding with personal reflection and lessons learnt for the benefit of the
the Board’s review of the recommended profit allocation and Deloitte’s reputation has been in the spotlight on widely reported profession broadly. Virtual webinars with two universities
Financial highlights
grading for each individual partner/director. These outcomes are matters involving African Bank, Tongaat, Steinhoff and Eskom. Over accounting students have been held and the programme will be
Deloitte Africa’s financial information has been extracted from our disclosed in full with all partners and directors. the past two years, the firm used these events as an opportunity extended to other interest groups.
financial records for the financial year ended 31 May 2021 (FY21). for deep reflection to not only set itself on the self-correcting path
The Remuneration Committee of the Board oversees the process, The two current outstanding matters pertain to the audits of
Our revenue represents amounts recovered or recoverable from with a focus on consistent and equitable treatment. but to contribute to the profession reform initiatives.
Tongaat and Steinhoff, which are both still under investigation by
clients for statutory audits, audit-related services and advisory Uphold audit quality IRBA. We are fully cooperating with all investigations. As these are
Partner/director compensation
services during FY21 and FY20, excluding VAT. Recoverable still under the spotlight with periodical developments, we
amounts reflect the fair value of the services provided, based on The average total compensation per partner/director in the year Our reflection further revealed that we place a high level of trust on
the validity of information and authenticity of engagements with recognise that our brand remains at the forefront whenever
the stage of completion of each client engagement, including ended 31 May 2021 amounted to R4.5 million before tax developments unfold in the media.
expenses and disbursements, as at the balance sheet date. (31 May 2020 R4.0 million before tax). client management, while we could be professionally more
sceptical. We acknowledge that there must be a healthy trust
Remediation steps
Partner/director pay gap relationship between auditors and auditees, there is equally an
Deloitte Africa R’m FY21 R’m FY20 These incidents have given us an opportunity to investigate the
The pay gap percentage is calculated based on the average obligation to be vigorously sceptical to a point of being “suspicious”
Total revenue 6,190 6,122 as noted by Sir Donald Brydon at a virtual event hosted by Deloitte root causes, find what are the similarities, their uniqueness and
remuneration per partner/director (per demographic grouping) at
Top 200 clients 3,637 3,943 Africa on 1 June 2021. apply remediation where necessary. Where gaps have been
each partner grading level. The pay gap figures shown in the table
Advisory clients 2,264 2,402
identified, we have taken firm steps to address these as follows:
*
below are linked to the current demographics of the partnership, Incidents Status
Audit clients *
1,373 1,541 which will gradually be corrected as we reach our transformation Area Intervention
targets. We were able to lessen the overall race and gender pay Two of the four mentioned matters are now finalised. The first
Non-audit related services as a percentage relates to Deloitte Consulting and Eskom. Contrary to the original Strengthening These include implementation of risk, ethics,
6.8% 7.8% gap in the past year. The widening of the race and gender gap per
of audit fees at Top 200 audit clients processes compliance and anti-corruption programmes across
grade arises as a consequence of the appointment of a number of view of Eskom that at the face of it, there were suspicions/
the firm, a significant increase in the Risk,
* The split between Advisory clients and Audit clients represented above is for black and female partners in the grade 1 band and the promotion allegations of state capture and/or corruption, investigations by Independence & Legal (RIL) resources and budget,
the firm’s Top 200 clients, who constitute the majority of the revenue. of black and female partners through the grades. This area will both parties found no evidence to substantiate the suspicions or as well as overall improvements to our operating
continue to be the focus of the firm. allegations. However, the investigations did highlight that, the model – focusing on risk structures.
Annually, a portion of the revenue is committed towards process had technical irregularities within Eskom’s procurement Embarking on Specifically, we have embarked on a deep and wide
strengthening our risk and quality management processes. For process and also deviated from the National Treasury regulations Future-Fit review of our audit business. Known as the
% Gap (mean per level)
example, in audit, 3.8% of the Audit & Assurance business’ FY21 governing the State-Owned Entities. Future-Fit project, which was designed to improve
White/Black * Male/Female**
revenue (3.5% of FY20 revenue) was reinvested into audit quality. governance, oversight, efficiencies and improve
Grading (FY21 number of Furthermore, while monetary value of the project was complex to audit quality (with immediate effect).
Only 6.8 per cent of revenue earned from audit clients is made up FY21 FY20 FY21 FY20
partners/ directors) determine due to a lack of competitive proper comparison, Eskom Managing Risk Empower our leadership and employees through
of non-audit services. We are confident that we have not impaired acknowledged that Deloitte Consulting was entitled to
1-2 (199) 7% 7% 9% 6% ongoing risk awareness and education sessions.
our independence or objectivity by delivering these essential, compensation for the services rendered, as Eskom fully benefitted
3-4 (118) 4% 0% 9% 5% Investing in • In the last two years Deloitte has made a
non-audit services to selected audit clients. and continue to benefit from the services rendered. The matter processes substantial investment (For example, in audit,
5-6 (5) -43%*** -42%*** - -
Remuneration of partners/directors has since been resolved amicably with Deloitte paying an agreed 3.8% of the Audit & Assurance business’s FY21
Total (322) 19% 21% 18% 19% settlement. Deloitte took accountability for not being prudent in revenue (3.5% of FY20 revenue) was reinvested
Key measures incorporated for KPI’s is around quality. into audit) in its client and engagement
ensuring that all Eskom required procurement processes were
* White/Black % gap for partners/directors of the South Africa Practice. onboarding processes.
A partner or director’s total compensation includes salary, medical ** No female representation at grading levels 5 and 6.
followed. • Improved risk-sensing and risk-assessment
aid, shares in profits, retirement and group life benefits, and *** Black partners’/directors’ earnings in this grading are more than that of their resources and systems.
The second matter relates to African Bank which was concluded
interest on capital. Remuneration is based on a comprehensive white counterparts. Uphold audit Most importantly, we have taken a zero tolerance
when the Independent Regulatory Board for Auditors’ (IRBA) issued
evaluation of their individual and team contributions to achieving quality stance for behaviour that falls short of our
its findings on 9 December 2020. In the ruling, one of the two
the firm’s strategic objectives. Independent non-executives standards of quality. Upholding the trust of clients,
Partners involved was acquitted on the only charge he faced while the regulator and the public is our foremost priority,
All partners/directors are subject to partner grading, which is We pay our firm’s independent non-executives, Nikiwe Bikitsha and the other Partner was acquitted on five and found guilty on five of while we continue to hold each other accountable in
reviewed annually. Each level of grade describes the skills, Ory Okolloh fees based on attendance at Africa Board meetings. the ten charges against him. The firm welcomed the outcome the ecosystem.
attributes and broad performance expected of a partner/director. particularly on two of the contentious charges the Partner was Engagement Implementation of a Public Sector procurement
Each level reflects a wide band of total remuneration units so that acquitted on – dishonesty and independence. Valuable lessons with Public policy – specific and stricter measures introduced
relative contributions can be recognised. have been learnt on the five guilty findings related to audit Sector for taking on of public sector work.
technical matters including the audit of impairments,
contraventions of the relevant audit and accounting standards, Concluding Remarks
insufficiency of audit evidence and inadequate audit working paper
As we move forward into the audit of the future, we acknowledge
documentation. Deloitte respects and accepts the ruling of the
that our actions are not the end itself but a means to an end. We
Disciplinary Committee. These findings highlighted that Deloitte
remain committed to working tirelessly to be at the forefront of
can do more to support Partners and auditing teams in the audit
contributing to the reforms undertaken by the profession. We
process.
continue to transform our audit business by investing in firmwide
Owing to the fact that the disciplinary findings referred to the audit controls, technology, and processes. We remain committed to
performed as early as 2013, the firm has already effected many of playing our role in delivering change that embraces audit quality,
the controls and changes that were causal factors. improves choice, and restores trust in the profession.
16 172021 Transparency Report 2021 Transparency Report Living our Purpose by making a positive impact for people and society What people expect of business is fundamentally changing, as is the definition of what it means to act in the public interest. In a world of uncertainty, businesses must help address society’s most pressing problems. We are building specialised expertise to contribute towards broader solutions that have wider impact on society and the environment. The pandemic increased our individual and collective stress while reducing mobility and restricting social gatherings. Socio-economic inequalities in Africa were exposed as disparities in access to quality healthcare were painfully conspicuous. The pandemic has placed strain on already struggling communities and economies making our commitment to building a better normal, and supporting our people through the disruption, even more determined. Deloitte is a purpose-driven firm that is deliberate in the choices we make, the organisational culture we foster, the solutions we create, the initiatives we support, and importantly, the company we keep, as well as the partnerships we forge. We strive to deepen our social impact through strategic partnerships with organisations that share our commitment to making a positive contribution to society. We are proud of the impact that we have made through a number of initiatives during this difficult period. However, we realise there is much work to be done to create more opportunity for more people, support recovery, build resilience, and spur economic growth. We remain steadfast in our commitment to being a positive force, and living our Purpose to drive broader and more meaningful impact on business, people and communities in Africa. To read about the positive contribution we have made to society, how we have helped our clients to realise their ambitions, and how we have capacitated our people to achieve success. Please read our detailed 2021 Deloitte Africa Impact Report here. 18 19
2021 Transparency Report 2021 Transparency Report
Appendix:
Governance
Our commitment to ethics In addition to our Deloitte Africa Code of Professional Conduct, we The Global firm has developed an independence policy which is Global independence monitoring system (GIMS)
have a number of internal policies to guide behaviour. These primarily based on the requirements of the International Ethics
Our leaders see ‘doing the right thing’ as a fundamental principle, The GIMS records and monitors the personal financial interests of
include Anti-corruption, Anti-harassment and Anti-discrimination, Standards Board for Accountants and the Public Company
which is not just in the interest of our people and our clients, but all partners, directors and client-facing professionals of manager
Anti-retaliation. Gifts and Entertainment and Consensual Personal Accounting Oversight Board. Furthermore, local requirements of
also in the public interest. grade and above, including those of their immediate family
Relationships. Our Anti-corruption policy was updated and country specific external audit regulators and other legislation
members (spouses or spousal equivalents, and dependents). The
Ethics and integrity are at the core of our business and important confirms our zero-tolerance stance on bribery and corruption in (including Companies Act requirements) have been included. The
system records and monitors the personal financial interests of
to the reputation of our firm. compliance with local and global anti-corruption laws and independence policy covers requirements that both the firm and
about 2 000 GIMS users that fall within the brackets for quality
regulations. All staff are required to complete ethics learning on an professional staff (including their immediate family members) need
Our commitment to independence, ethical behaviour and monitoring. This is primarily to ensure that our client facing
annual basis to ensure we drive awareness and a culture of ethics to adhere to.
compliance is demonstrated by the tone set by our leaders, and is professionals and their immediate families do not hold prohibited
and integrity.
reinforced by carefully and consistently implementing and The independence policy has been updated in the past year based financial interest in our clients.
monitoring comprehensive policies and procedures. The ‘Deloitte Speak Up’ platform provides a confidential channel on regulatory changes of the aforementioned requirements.
In 2021, partners and staff were subject to financial penalties of
through which ethics concerns can be raised. All reports are Further changes to the regulatory requirements are expected in
Upholding ethics over R1 million across our Africa Member Firm. Most of these
independently investigated, and action is taken where required. the coming months, specifically on non-assurance services and
occurrences related to individuals missing deadlines to report
The expectation to act with integrity in accordance with high ethical The Chief Ethics Officer presents a report on the outcome of all fees for certain audit clients – the firm’s policy will be aligned
financial interests or business relationships.
standards is at the core of everything we do. To this end our Global Speak Up reports to the Executive and the Board. A targeted accordingly. Any breach of independence policies is taken seriously,
Code of Business Conduct (Global Code) and our Africa Code of communication strategy resulted in increased ethics awareness and may result in sanctions determined in accordance with the Business relationships monitoring system (BRMS)
Professional Conduct outline the commitment we make and the and a concomitant increase in the number of Speak Up reports Deloitte Africa disciplinary framework. A dedicated Director of
The BRMS records the business relationships of the firm and all
standards we adhere to as Deloitte professionals. We take any over the past year. Independence is appointed to oversee firm and staff compliance
staff and monitors compliance with independence policy. All
breach of these commitments and standards seriously, and any with the independence requirements. Support is provided by an
Deloitte Africa Independence proposed relationships require pre-approval through our BRMS,
breach may result in sanctions determined in accordance with the Independence network that was established within all our
and certain relationships are re-evaluated and approved on an
Deloitte Africa disciplinary framework. The professional services industry took root and blossomed when businesses and regions across the Africa continent.
annual basis.
the capital markets determined that there was a unique, material
A dedicated Chief Ethics Officer is appointed to drive our ethics Several systems of quality controls were developed by the Global
value in hiring independent professionals to help protect the public Inspection and testing
strategy and programme. firm to assist with the compliance and monitoring of independence
interest. Today, external auditor independence continues to be
requirements. These have been supplemented by the A sample of partners, directors and client-facing professionals of
We strongly believe that the tone at the top is critical to our ethics vital to the public’s trust in the integrity of the financial reporting
development of local systems of quality controls, where necessary. manager grade and above are selected for independence
culture and as such leadership demonstrates ethical leadership ecosystem.
Over the past year, these have been fully centralised across the inspection and testing annually. The individual’s personal
not only in word but also in the decisions and actions. As part of
Independence is the foundation of the firm’s external audit Africa regions to drive consistency. compliance with the firm’s independence policies is evaluated,
the drive to ensure an ethics culture, our Chief Ethics Officer
business and is the cornerstone of the Deloitte culture. It is key to including the accurate completion of their independence
regularly facilitates conversations with all partners and directors on Independence declarations
the firm’s success and is deeply embedded in everything we do – it declarations and GIMS and BRMS records.
topical issues. In the past year the conversation centred on
is a mindset and a behaviour, not merely a compliance checklist. All Electronic independence declarations are completed by all staff
‘Respect and Inclusion’ and ‘Responsible Business’. Deloitte entity search and compliance (DESC) system
professional staff have an individual ongoing commitment to annually whereby they confirm that they have fully complied with
A network of Ethics Champions has been established across the independence, just as much as any other professional aspect of all aspects of the firm’s independence policies over the past 12 The DESC system contains group structure information of all the
Firm to assist in driving our ethics messaging throughout all fulfilling their roles at the firm. months. Similarly, each new hire completes a declaration upon firm’s audit clients. Any new proposed non-audit service for any
businesses and all regions across the continent. joining the firm, confirming their understanding of the firm’s audit client or its affiliate is submitted to the relevant audit partner,
Independence is however not an audit-only concern. It is a firm
independence policies after receiving extensive training on these. whose role is to ensure that the scope of services complies with
Our annual ethics survey confirmed that 98% of respondents concern. Our independence with respect to external audit clients is
The firm also signs an annual confirmation to the Global firm, the relevant independence policies, and that it falls within the
believe that Deloitte is an ethical workplace. The survey identified not negotiable and it is as key to our success as quality client
confirming firm independence compliance over the past 12 scope preapproved by the entity’s audit committee. This is
potential blind spots, which enables the ethics team to address service. Our firm and all its professionals personify an
months. facilitated through the Service Request Monitoring (SRM)
these through targeted interventions. The Chief Ethics Officer independence mindset. In practice, this means that we meet the
application within DESC. The information contained in the DESC
shares the survey results with all Deloitte professionals, and expectations of our regulators in everything we do collectively and
system is continuously updated to ensure its accuracy and
presents both the results and an action plan to the Executive and individually, from how we serve our clients to how we manage our
completeness. The system also allows all staff to confirm the
the Board. firm and personal financial and business relationships.
permissibility of a new personal financial interest, before the
acquisition is made.
20 21You can also read
