Transparency report 2016 - Grant Thornton Morocco
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Grant Thornton UK LLP Transparency Report 2016 2 GET TO KNOW GRANT THORNTON $4.6BN Grant Thornton UK LLP is part of a global network of independent Grant Thornton member firms which has 729 offices around the world. Together $4.6BN we have created a global strategy – Growing Together 2020 – which leverages our combined strengths to deliver global solutions for our clients. $4.6BN GLOBAL REVENUES OF $4.6BN $1.95BN GLOBAL REVENUES OF $4.6BN GLOBAL REVENUES OF $4.6BN $1.95BN $1.95BN RESULT OF AUDIT OF ANNUAL AND CONSOLIDATED FINANCIAL STATEMENTS RESULT OF AUDIT OF ANNUAL AND CONSOLIDATED FINANCIAL RESULT OF AUDIT OF ANNUAL MORE THAN STATEMENTS AND CONSOLIDATED FINANCIAL STATEMENTS MORE THAN 42,000 MORE THAN 42,000 42,000 MORE THAN 42,000 GRANT THORNTON PEOPLE MORE THANWORLDWIDE 42,000 GRANT THORNTON PEOPLE WORLDWIDE MORE THAN 42,000 GRANT THORNTON ONEOF ONE OFTOPTOP 5050 PEOPLE WORLDWIDE WORLD’S MOST ATTRACTIVE ONEMOST WORLD’S GLOBAL OF TOP 50 ATTRACTIVE EMPLOYERS GLOBAL WORLD’SEMPLOYERS MOST ATTRACTIVE AWARDED BY UNIVERSUM ANNUAL GLOBAL AWARDED STUDENT EMPLOYERS BY UNIVERSUM SURVEY ANNUAL IN 2015 STUDENT SURVEY IN 2015 AWARDED BY UNIVERSUM ANNUAL STUDENT SURVEY IN 2015 GRANT THORNTON UK LLP EMPLOYMENT STATISTICS 85% 85% 94% 85% 83% 85% 94% 94% 85% 83% 83% OF OUROFPEOPLE OUR PEOPLE ARE PROUD ARE PROUD OF OUR OF OUR PEOPLE PEOPLE AREARE ENCOURAGEDTO ENCOURAGED TO OFOFOUR OUR PEOPLE PEOPLE FEEL FEELTHAT THATOUR OUR OFOF OUR PEOPLE OUR PEOPLEFEEL THEIR FEEL TEAM THEIR TEAM TO BE OF PART OFFIRM THE FIRM DELIVER HIGH QUALITY WORK STRUCTURE IS FOSTER THETHE CULTURE OF QUALITY TO BE PART THE DELIVER HIGH QUALITY WORK STRUCTURE IS SET SETUPUPININTHE THERIGHT RIGHT FOSTER CULTURE OF QUALITY AND MORE OF OUR THAN PEOPLE 8 OUT OF 10 WAY TO TAKE RESPONSIBILITY ANDOF EXCELLENCE AND MORE THAN 8 OUTARE PROUD OF 10 OF OUR PEOPLE ARE ENCOURAGED TO WAYOF OUR TO PEOPLE TAKE FEEL THAT OUR RESPONSIBILITY AND OUR PEOPLE FEEL THEIR TEAM EXCELLENCE WOULD RECOMMEND OUR SERVICE FOR OUR ACTIONS WOULD TO BE PART OF OUR RECOMMEND THE FIRM SERVICE DELIVER HIGH QUALITY WORK FORSTRUCTURE OUR ACTIONSIS SET UP IN THE RIGHT FOSTER THE CULTURE OF QUALITY AND MORE THAN 8 OUT OF 10 WAY TO TAKE RESPONSIBILITY AND EXCELLENCE WOULD RECOMMEND OUR SERVICE FOR OUR ACTIONS 1,602,000 1,602,000 1,602,000 HOURS INVESTED IN DELIVERING AUDITS VERSUS 1,528,000 HOURS
Grant Thornton UK LLP Transparency Report 2016 3 DISCLOSURES MAPPING This transparency report sets out how the firm complies with the disclosure requirements of the Audit Firm Governance Code, being the benchmark for good governance, and also the steps we have taken to drive audit quality by reference to the Audit Quality Framework. As a UK statutory auditor of public interest entities, we welcome the opportunity to share the information included in this transparency report which covers the year ended 30 June 2016. The table below maps the requirements of the disclosures relating to the Audit Firm Governance Code to our Transparency Report. We acknowledge the provisions of the current code and are working towards adopting the provisions of the updated Audit Firm Governance Code for next year’s report. AUDIT FIRM GOVERNANCE CODE REF NARRATIVE PAGE A.1.2 THE FIRM SHOULD STATE IN ITS TRANSPARENCY REPORT HOW ITS GOVERNANCE STRUCTURES AND MANAGEMENT 16 - 19 TEAM OPERATE, THEIR DUTIES AND THE TYPES OF DECISIONS THEY TAKE. A.1.3 THE FIRM SHOULD STATE IN ITS TRANSPARENCY REPORT THE NAMES AND JOB TITLES OF ALL MEMBERS OF THE FIRM’S 16 - 19, GOVERNANCE STRUCTURES AND ITS MANAGEMENT TEAM, HOW THEY ARE ELECTED OR APPOINTED AND THEIR TERMS, 46 - 47 LENGTH OF SERVICE, MEETING ATTENDANCE IN THE YEAR, AND RELEVANT BIOGRAPHICAL DETAILS. C.2.1 THE FIRM SHOULD STATE IN ITS TRANSPARENCY REPORT ITS CRITERIA FOR ASSESSING THE IMPACT OF INDEPENDENT 18 NON-EXECUTIVES ON THE FIRM’S INDEPENDENCE AS AUDITORS AND THEIR INDEPENDENCE FROM THE FIRM AND ITS OWNERS. D.1.3 THE FIRM SHOULD STATE IN ITS TRANSPARENCY REPORT HOW IT APPLIES POLICIES AND PROCEDURES FOR MANAGING 31 POTENTIAL AND ACTUAL CONFLICTS OF INTEREST. D.2.2 THE FIRM SHOULD STATE IN ITS TRANSPARENCY REPORT THAT IT HAS PERFORMED A REVIEW OF THE EFFECTIVENESS 34 OF THE SYSTEM OF INTERNAL CONTROL, SUMMARISE THE PROCESS IT HAS APPLIED AND CONFIRM THAT NECESSARY ACTIONS HAVE BEEN OR ARE BEING TAKEN TO REMEDY ANY SIGNIFICANT FAILINGS OR WEAKNESSES IDENTIFIED FROM THAT REVIEW. IT SHOULD ALSO DISCLOSE THE PROCESS IT HAS APPLIED TO DEAL WITH MATERIAL INTERNAL CONTROL ASPECTS OF ANY SIGNIFICANT PROBLEMS DISCLOSED IN ITS FINANCIAL STATEMENTS OR MANAGEMENT COMMENTARY. D.2.3 IN MAINTAINING A SOUND SYSTEM OF INTERNAL CONTROL AND RISK MANAGEMENT AND IN REVIEWING ITS EFFECTIVENESS, 34 THE FIRM SHOULD USE A RECOGNISED FRAMEWORK SUCH AS THE TURNBULL GUIDANCE AND DISCLOSE IN ITS TRANSPARENCY REPORT THE FRAMEWORK IT HAS USED. This Transparency report was approved by the Strategic Leadership Team of Grant Thornton UK LLP on 30 September 2016 and signed on its behalf by Sacha Romanovitch.
Grant Thornton UK LLP Transparency Report 2016 4 CONTENTS 1. EVERYTHING WE DO STARTS AND ENDS WITH US Pg5 8. QUALITY AND INTERNAL CONTROL Pg23 2. REPORT FROM THE INDEPENDENT Pg6 9. ETHICS AND INDEPENDENCE Pg29 CHAIR OF THE PARTNERSHIP OVERSIGHT BOARD 10. STATEMENT ON THE FIRM’S Pg34 3. FOREWORD FROM THE HEAD Pg8 INTERNAL QUALITY CONTROL SYSTEMS OF QUALITY, ETHICS AND EXCELLENCE 11. EXTERNAL QUALITY ASSURANCE Pg35 4. MESSAGE FROM THE HEAD Pg10 OF AUDIT AND ASSURANCE 12. FINANCIAL INFORMATION Pg39 5. LEGAL STRUCTURE, OWNERSHIP Pg12 13. PARTNER REMUNERATION Pg41 AND THE INTERNATIONAL ORGANISATION 14. LIST OF PUBLIC INTEREST ENTITIES Pg42 6. LEADERSHIP AND GOVERNANCE Pg16 15. POB MEMBERS AS AT 30 JUNE 2016 Pg45 7. REPORT FROM THE CHAIRMAN OF Pg20 THE RISK & AUDIT COMMITTEE
Grant Thornton UK LLP Transparency Report 2016 5 1. EVERYTHING WE DO STARTS AND ENDS WITH US… …our collective energy, commitment and intelligence. We’re a firm with a unique culture and brand who do things differently, yet what really distinguishes Grant Thornton is our people. We personally understand that delivering high quality service is critical to our future success. I believe in all of our people, trusting each and every one to live our values, make choices and do what is the right thing by our firm. After all, as a shared enterprise, it’s in all of our best interests to share ideas and share responsibility in order to share the reward. This Transparency Report records global trust index, last year saw public Along with the ever-changing needs the progress we have made in 2016 trust in business hit a five-year low. of our clients, our markets and wider within our Quality, Ethics and Excellence While this year it seems to have improved society, we have a responsibility to agenda and sets out how we comply moderately, the trust gap between the exercise professionalism and good with the requirements of the Audit Firm informed public and wider population is judgement every day. Governance Code, as well as the steps growing, driven in part by income In 2016, audit and assurance we have taken to drive audit quality by inequality and divergent expectations for services accounted for 28% of the reference to the Audit Quality Framework. the future. This is why playing our part in firms’ revenues and remain a key area 92% of the assurance team feel helping to create trust and integrity in for our firm. We currently provide encouraged to deliver high quality audits. markets is so important. audit services to approximately 8,500 We believe this report demonstrates that Sharing responsibility is about making companies, including 190 listed entities. Grant Thornton has the capabilities to a commitment to each other and conduct high quality audits objectively understanding the consequences and effectively and to provide high of falling short on this. Our new Code quality services to its clients. of Conduct forms a large part of that Our purpose is about shaping a vibrant commitment, providing clarity on what’s economy where business and people expected of us as Grant Thornton people SACHA ROMANOVITCH can thrive. This translates into who we and as a firm. While it can’t govern every CHIEF EXECUTIVE OFFICER, work with, what we do with them, what possible situation – it’s a key part of our GRANT THORNTON UK LLP we speak out on and how we are as wider stewardship, governance and risk a business. It is clear that audit and management culture – and has evolved assurance is fundamental to trust and to reflect our newly defined purpose – integrity in markets – and this is why to shape a vibrant economy. we do this work. According to Edelman’s
Grant Thornton UK LLP Transparency Report 2016 6 2. REPORT FROM THE INDEPENDENT CHAIR OF THE PARTNERSHIP OVERSIGHT BOARD This is my first report as Independent Non-Executive Chair of Grant Thornton UK LLP’s Partnership Oversight Board (POB). I was appointed in April this year and am the first ‘outside’ Chair of the POB – although having been a Non-Executive member of the Board for five years, Grant Thornton is an organisation I already know well and have enormous affection and respect for. It is a firm with bold ideas and great ambition, and I’m pleased here to be able to give our wider stakeholders an insight into the role of our Non-Executives in the way it is governed. Our three Independent Non-Executives All three of us make up the Profit We meet regularly as members of (INEs) are central to the oversight of Sharing sub-committee, alongside the Partnership Oversight Board, the Grant Thornton’s leadership team, one of the partners who is an elected body which holds the firm’s executive performing a role that has many parallels member of the Board. Together these leadership to account, and also separately in the governance of public companies, committees undertake much of the with members of the leadership team to albeit with a particular eye to the specific heavy lifting of the governance work address current issues. Business leaders requirements of a professional services of the Board, ensuring that the firm’s and partners regularly attend informal partnership that is owned entirely by its controls are effective, its approach to meetings with the Independent Non- working partners. Our role involves a risk management is suitably balanced, Executives and the elected members of mixture of looking after the interests of its leadership is properly assessed and the Board. This, together with the firm’s the partners and other stakeholders in the rewarded, and the financial interests inclusive spirit, has created a strong business, being a mentor for and providing of the partners are fairly determined. system through which the Non-Executives constructive challenge to the CEO, her gain access to all relevant information As Non-Executives, we have a Strategic Leadership Team and executive necessary to pursue our public interest particular responsibility to ensure management, and ensuring good role under the Audit Firm Governance that Grant Thornton’s public interest corporate governance of the firm’s Code, as well as ensuring the interests audits are of the requisite quality, business and of its people. In bringing of all stakeholders in the firm are taken as assessed by the regulator, but independent oversight, we try to into account in executive decision making. more widely by our stakeholders in provide a different viewpoint both the marketplace. In discharging this Audit Quality Reviews and the firm’s inside and outside the boardroom. responsibility we participate in various wider quality agenda have continued Two of our INEs are members of the internal and external reviews and policy to be our principal focus over the last Risk and Assurance sub-committee of consultations. As part of the annual twelve months. The scores achieved the Board – one of whom will take over profit-sharing process, we ensure that by Grant Thornton in the AQRT process as Chair of the sub-committee this the quality grades of all audit partners this year, and public sector audit financial year – while I am Chair of are appropriately taken into account reports, have improved. our Remuneration Committee. in determining their profit shares.
Grant Thornton UK LLP Transparency Report 2016 7 However, there remains more work to is vital to its future reputation and in and it was decided that its next member be done and we will continue to closely turn its success. should have the audit experience monitor this. Internal regular meetings necessary to understand in detail the We have regularly reviewed the are held with the Head of Audit and firm’s audit business as well as having leadership team’s implementation Assurance to ensure that good practices experience of publicly listed company of the firm’s new shared enterprise are embedded and remain on track for finance. Deena Mattar was duly appointed. programme. The introduction of this the delivery of high quality audits by the She is a qualified accountant, has been programme is central to the executive’s firm and that internal controls in this area finance director of a listed entity, and long term strategy. A key principle has are effective. she now has extensive experience been to consult with all levels of the firm as a non-executive. We also continue to monitor and review so as to ensure the programme satisfies the quality of the non-audit practices of the aspirations and expectations of Looking forward to the current year, the firm, and in this regard client take-on all interested parties. we anticipate a few further role changes and continuance procedures have within our oversight team. We will continue After the CEO and Strategic Leadership been examined. There remain lessons to support the partnership closely, raising Team changes which took effect at the to be learned in client selection and areas of concern, looking at issues beginning of the financial year, we oversaw improvements to be made in this area. that are likely to cause an impact on the handover and transition to a new team the business and in turn affect objectives, We have reviewed the firm’s process with a refreshed strategy. Subsequent remuneration and allocation of profits. of partner grading and the awarding to the executive team changes, the final We will continue to focus on the quality of incentives to ensure alignment with term of the Board’s Chairman, Steve and ethics agenda not only in the context the firm’s quality agenda, looking at Maslin, came to an end and a succession of the audit practice but also across technical skills and ability, sector plan and selection process was carried the other practices of the firm. knowledge, commercial judgement out for the role of POB Chair. I was and compliance with the firm’s values appointed as Chairman following the and culture. conclusion of this process and I am the ED WARNER first Independent Chairman of the POB. CHAIRMAN OF PARTNERSHIP The new Ethical Standard introduced OVERSIGHT BOARD this year has created an opportunity to One of our first non-executives, Richard GRANT THORNTON UK LLP review the policies and processes of the Eyre, stood down after five years’ service firm’s quality and ethics function, bringing during this financial year. The firm the quality and ethics agenda across the conducted a selection process for a new firm’s practices together. Conducting Non-Executive, during which the balance business in an ethical way, being clear of independence and skills amongst the about who the firm works with and why, Independent team was widely discussed “We will continue to focus on the quality and ethics agenda not only in the context of the audit practice, but also across the other practices of the firm.”
Grant Thornton UK LLP Transparency Report 2016 8 3. FOREWORD FROM THE HEAD OF QUALITY, ETHICS AND EXCELLENCE Although I have only been in post a short while, I am already in a position to make some preliminary observations in my newly created role of Head Quality, Ethics and Excellence. Firstly, I am really buoyed by the For our people, this strategy is As a firm, our senior leaders believe that enthusiasm expressed by the teams underpinned by the quality of our training, we have a duty to make sure that all of our for whom I have responsibility, their professional development and awareness people have the best possible environment commitment as well as the commitment of, and compliance with, regulatory and to develop, progress and be effective. of the entire firm, to embrace the legal requirements. We regard it as really This will be driven by myself, the Head of Quality, Ethics and Excellence agenda. important to be crisp in the definition of Quality, Ethics and Excellence reporting Our approach encompasses all of our Quality and that the progress in our level directly to our CEO. The firm wide team service lines, support functions, teams of Quality can be measured over time. also makes promises to each other to and people within our business. Two examples are: do the right thing, to comply with the In Grant Thornton we embrace Shared rules and to build trust and integrity • We are overlaying Quality measures Enterprise and this brings with it in markets. The Quality agenda is being in the Assurance business with a Root responsibilities; all of our people set to ensure that we all comply with Cause Analysis of matters identified have a responsibility to themselves, our shared obligations. by both internal and external file reviews each other and the firm to ensure that in order that better identification, ETHICS Reputations are hard won the Quality, Ethics and Excellence remediation and eradication measures and easily lost and therefore as a firm agenda becomes firmly embedded can be implemented and we can we work hard to ensure that we manage as part of our cultural DNA. share good practice. risks to our reputation that inevitably arise Secondly, and most critically, the from doing business. We are therefore • We are responding to observations by measures and policies that we are extremely keen that risks arising as a regulators in respect of our recording developing, and in some cases have consequence of ethical connotations are and monitoring of relationships and already implemented, are showing signs managed effectively. financial interests that could impact of making a big difference. Looking at our ability to act objectively or We have already introduced a more the key components of our agenda there independently. The requirement to fundamental Ethics Training module are three broad strands, one each for complete our Global Independent across the whole business, featured the Quality, Ethics and Excellence. System on a timely basis has been given new Ethical Standard training into our QUALITY In terms of Quality, we high priority and more robust follow Assurance Conference and are currently regard this as very much relating to our through policies are being applied. developing Ethics modules for inclusion infrastructure, our people, our systems into all core training delivered by the These form part of a number of measures and our processes. Our strategy is to firm. Roll out and implementation will take being adopted in our commitment to ensure that our people have the best tools place during the current financial year. continuous improvement in Quality. at their disposal to develop themselves and our business into being the first choice firm for Assurance, Advisory and Taxation services.
Grant Thornton UK LLP Transparency Report 2016 9 However, we regard Ethics as being EXCELLENCE This is the third element of of timing of delivery of our work ie by not much broader than formal procedures our agenda and we regard this as relating over promising and under delivering. The and compliance set by legislation and to the services we deliver, the robustness monitoring of, and profile given to, CSRs regulators. One of the first steps of the advice and recommendations will be a key feature of our Excellence taken in my new role as Head of Quality, we give, the quality of the audits we agenda this forthcoming year. Ethics and Excellence was to undertake a undertake and the value-add in all our Excellence also requires us to have the revamp of our Code of Conduct. In this we clients’ experiences. right skills to fulfil assignments. We will emphasised that we expect our people to We want to be regarded as the achieve this by increasing the profile of be professional, honest and trustworthy, vibrant firm at the heart of growth our specialist Industry Groups and by complying with all applicable ethical and and for building trust and integrity in applying cross line of service teams professional standards and regulatory markets. Specifically, we consider the (where practical and permissible) and requirements; it is important to us that circumstances of a particular client collaborating in a way that our people we not only do what is lawful but that we situation, the direction of travel of their and clients enjoy the best experiences. do what is right. Part of this will involve organisation, the focus on management Increased awareness through heightened procedures around take on of the business and their appetite and communications from the Quality, of our people and clients. commitment to implementing change. Ethics and Excellence team will ensure Our reputation is the firm’s most This is then set alongside an assessment that adherence to firm wide policies. valuable asset and the Ethics agenda of our capability, ability to influence, In an increasingly changing and volatile is being shaped to ensure that all of our whether our people would want to work business environment, professional people recognise that they create and for the client and whether we can deliver advisors are expected to create value own that reputation. The Code of Conduct the work at a suitable return to ensure we for clients and deliver consistent highlights the key role that they have to can dedicate the right level of resources Excellence by applying innovative and play in ensuring that they behave in a to delivering high quality work and advice. exciting solutions. We want to secure manner conducive with the firm’s Therefore, our first step is to make sure our standing as the firm that is known benchmark. It also involves working that we act for clients that we want to act for its ethical compass whilst creating with clients who fit our culture, treat our for and that we properly know our clients value by seizing opportunities in a colleagues and people outside of the firm before we enter into formal engagements. connected world. fairly, support those who need help and be We are also passionate about our honest and straightforward with people service levels and regularly monitor our who are not doing the right thing. This is ADRIAN RICHARDS performance by client service reviews an integral part of our Ethics agenda. HEAD OF QUALITY, ETHICS AND EXCELLENCE (CSRs) seeking always to maximise our GRANT THORNTON UK LLP scores. One measure of Excellence is exceeding client expectations in terms “We are committed to continually developing our systems, processes and people in a direction aligned with our purpose. This will differentiate us from our competitors, underpinned by Quality, Ethics and Excellence in all that we do and I look forward to reporting on our further progress in our next report.”
Grant Thornton UK LLP Transparency Report 2016 10 4. MESSAGE FROM THE HEAD OF AUDIT AND ASSURANCE We remain committed to enhancing the quality of our audits and delivering assurance services to best support clients with real value and choice. Our investment in people, audit technology and methodology is bearing fruit and we are broadening our wider assurance offering to support trust and confidence in the market. As I complete my first year in this role, I reflect on the personal commitment to quality from Sacha as CEO and the challenge and support of our INEs that contribute to an environment of continual improvement to ensure that our services address the needs of our stakeholders and that our work further improves our reputation for audit capability and quality. KEY ACHIEVEMENTS IN 2016 In 2016 TECHNOLOGY We have adopted an iCloud CLIENT TAKE-ON AND CONTINUANCE we have continued in our efforts to based enterprise system to support audit We have invested in a team of implement best practices across the engagement teams and facilitate better 28 professionals to augment our audit workspace: connections with clients and their needs. independence checks and processes as well as establishing an engagement AUDIT DELIVERY MODEL Our dedicated PEOPLE DEVELOPMENT We have invested quality control review team to increase support team in Belfast has grown to 60 in our eLearning platform with structured the consistency and client experience. staff and is now being fully implemented in training days and dedicated materials to the practice. This team means that audit assist in self-development of our people. QUALITY ASSURANCE We have engagement teams have the right support We have established a programme of engaged with our stakeholders and and have been freed up to focus on the quarterly reviews of our Responsible have incorporated feedback, particularly more complex issues. The embedded Individuals (RI) and further aligned in areas such as root cause analysis which centralised processes now mean that incentive schemes to the delivery of contribute to our continual improvement. there is more consistency in the delivery high quality audits. of our audits and the overall quality.
Grant Thornton UK LLP Transparency Report 2016 11 EXTERNAL QUALITY ASSURANCE and training in recent years and the hard achieving high quality audits is easier, At Grant Thornton we are inspected by a work of our dedicated audit teams. We we deliver deeper audit insight for our number of regulators, details of which are fully recognise the need to maintain focus clients, and we increase the satisfaction given in section 11 of this report. We are and execution in individual audit and enthusiasm of our people. on an annual inspection cycle by the FRC’s assignments and within the firm’s systems We will continue to invest in our people Audit Quality Review (AQR) process. AQR in order to continually develop and so that our work remains independent assesses the quality of the audits of listed demonstrate our quality. and robust as well as continuing to focus and other major public interest UK entities INTERNAL QUALITY ASSURANCE on developing the broad business skills and the policies and procedures We continue to run a substantial internal that will allow deeper insight, enhanced supporting audit quality. We were pleased audit quality review process to ensure scepticism and deliver excellent service. with the results of our latest published that our people are held accountable inspection report. Of the seven examples Looking further out our vision for 2020 is for producing high quality audits. 38% of our audits reviewed in the 12 months to to be the go-to firm for assurance services of all engagement leads were subject December 2015, six were rated as “Good for dynamic organisations, delivering trust to audit quality reviews in 2015. As a with limited improvements required”. and confidence to the market. Our Vibrant result of these reviews: One was rated “improvements required”. Economy purpose is creating meaningful None of our audits were assessed as • 32 audit partners or directors received conversations with key stakeholders “significant improvement required”. This enhanced reward for achieving across all sectors, providing wider improvement is consistent with the high standards of audit quality stakeholder engagement on market needs quality improvements reported by the and opportunities. • 13 audit partners or directors had Quality Assurance Department (QAD) and their profit share (or bonus) reduced Public Company Accounting Oversight due to audit quality results falling Board (PCAOB) based on their review visits SUE ALMOND below the firm’s benchmark. HEAD OF AUDIT AND ASSURANCE in 2015 and the Public Sector Audit Appointments limited (PSAA) annual review GRANT THORNTON UK LLP PRIORITIES FOR 2017 AND BEYOND in 2016, we need to ensure that this trend Grant Thornton International Limited remains consistent. These reviews give us (GTIL) member firms are progressing a a strong indication that we’re moving in watershed project, investing approaching the right direction and consistently placing US $100m to redesign and develop of a quality and excellence at the heart of what new global audit and analytics technology, we do. It also reflects the major with supporting audit methodology and investment we have made in technology learning. The project will ensure that “High quality audits and the delivery of value enhancing wider assurance services is the bedrock of creating trust & integrity in markets. This is a key aspect of our wider purpose, and the investments we have made in our people and processes will continue as we work to ensure we are always delivering the best for our clients.”
Grant Thornton UK LLP Transparency Report 2016 12 5. LEGAL STRUCTURE, OWNERSHIP AND THE INTERNATIONAL ORGANISATION LEGAL STRUCTURE throughout the United Kingdom. PRINCIPAL SUBSIDIARY UNDERTAKINGS GRANT THORNTON UK LLP In addition, we have branch offices Set out below is a list of the principal in the British Virgin Islands and the subsidiary undertakings of Grant Thornton The firm is incorporated under the Limited Cayman Islands. Our website has a current UK LLP at 30 June 2016, along with Liability Partnerships Act 2000, and list of our office addresses. details of their principal activity. registered in England and Wales (registered number OC307742). In this report, Grant Thornton UK LLP COMPANIES PRINCIPAL ACTIVITY is referred to variously as: the firm, the LLP, Grant Thornton, we, our and us. Grant Thornton Business Services Employment of personnel OWNERSHIP The firm is entirely owned Grant Thornton Specialist Services Insolvency and restructuring by its members (normally referred to as (Cayman) Limited advisory services partners). At 30 June 2016, there were Grant Thornton (British Virgin Islands) Limited Insolvency and restructuring 179 members (2015: 184). A list of the advisory services members is available for inspection at the firm’s registered office: Grant Thornton Fulwood Insurances Limited Insurance services House, Melton Street, Euston Square, London NW1 2EP. Grant Thornton Debt Solutions Limited* Personal insolvency services OUR BUSINESS Grant Thornton is a Geniac UK Limited Management of business leading financial and business advisory support functions firm focused on working with dynamic The Local Futures Group Limited Licencing of intellectual organisations. We are structured along property services geographical, industry and service lines enabling us to offer our clients a great depth of expertise delivered in a distinctive LIMITED LIABILITY PARTNERSHIP PRINCIPAL ACTIVITY and personal way. Our principal services are audit and assurance, tax and Grant Thornton Services LLP Employment of personnel advisory services. A full list of our Grant Thornton Employee Benefits LLP Employee benefits services can be found on our website. consultancy services At 30 June 2016, the firm employed 4,629 people (2015: 4,461), and * Grant Thornton Debt Solutions Limited is a joint venture in which the firm owns 50% of the called up share capital. operated from 26 offices (2015: 26) The remaining 50% is owned by Grant Thornton Holdings Limited, a company registered in Ireland.
Grant Thornton UK LLP Transparency Report 2016 13 THE INTERNATIONAL GOVERNANCE AND LEADERSHIP • overseeing general governance The key governance and leadership matters, such as the composition ORGANISTION bodies of GTIL are the Board of Governors and performance of the Board. Grant Thornton UK LLP is the UK member and the Global Leadership Team (GLT). GTIL’s year end is 30 September, firm of Grant Thornton International Ltd Their roles and responsibilities are set so the latest available data is (GTIL). GTIL is a private company limited out, in summary, below. therefore to 30 September 2015. by guarantee, incorporated in England and Wales. It is an umbrella organisation INTERNATIONAL BOARD OF GOVERNORS The Board members as at 30 June that does not provide services to clients. The Board of Governors (the Board) is 2016 are: Services are delivered by member the principal and overriding authority • Scott Barnes, Chair, board member firms around the world using common in GTIL. The Board is a group selected methodologies ensuring the clients from Grant Thornton member firms • Peter Bodin, Sweden of all member firms have a consistent worldwide and exercises governance • Pascal Boris, independent board experience and standard. on their behalf. The Board comprises member the chief executive officer of GTIL, At 30 September 2015, GTIL had managing partners from the largest • Vishesh Chandiok, India 140 independent member firms Grant Thornton member firms, managing (2014: 130) with aggregate revenues • Marivic Españo, Philippines partners elected from Grant Thornton of US$4.6 billion (2014: US$4.7 billion), member firms which are not amongst • Gagik Gyulbudaghyan, Armenia and more than 42,000 people. the largest and independent directors. • Arnaldo Hasenclever, Argentina A full list of Grant Thornton member The Board aims for a reasonable firms across the world is available on balance of representation from • Xu Hua, China our website. The total turnover from different geographical areas, including emerging markets. The Board’s • Emilio Imbriglio, Canada Grant Thornton member firms across the world resulting from the audit of responsibilities include: • Vassilis Kazas, Greece annual and consolidated financial • providing input into the strategic • Greg Keith, Australia statements is US$1.953 billion. development of GTIL and approving the global strategic direction and • Daniel Kurkdjian, France MEMBER FIRM ADMISSIONS Prospective member firms must meet a number of policies of GTIL as established • Kevin Ladner, Canada criteria in order to be considered for by the CEO • Mike McGuire, US membership, which include: • overseeing the implementation of the global strategy • Ed Nusbaum, CEO, Grant Thornton • the prospective firm’s reputation International Ltd for quality and its adherence to • overseeing membership matters, high standards (including approving new member firms, • Sacha Romanovitch, UK • adoption of global policies, suspending the rights of, or expelling • Judith Sprieser, independent procedures and methodologies, a member firm) board member including methods and quality control • appointing and setting the remuneration systems for providing services to of the Chair of the Board clients, engagement protocols, and ethical and independence policies • appointing, evaluating performance and setting the remuneration of the CEO • maintenance of a system of quality control that meets or exceeds • approving the budget and member International Standard on Quality firm fees Control 1 (ISQC 1) • overseeing the financial health of GTIL • agreement to the periodic evaluation • overseeing global enterprise of the system of quality control by risk management the global quality monitoring teams.
Grant Thornton UK LLP Transparency Report 2016 14 GRANT THORNTON INTERNATIONAL CHIEF EXECUTIVE OFFICER The CEO THE GLOBAL LEADERSHIP TEAM LIMITED GTIL assists all Grant Thornton is appointed by the Board for an initial The GLT drives the execution of the global member firms in delivering consistent, term of up to five years renewable once strategy and is chaired by the CEO. It is a robust, rigorous and high quality audits. for a further period of up to three years. full-time management group and its This is achieved through the provision of a The CEO, Ed Nusbaum, is responsible for current members are: global audit methodology and software; the leadership of GTIL. The role of the • Ed Nusbaum, CEO, GTIL protocols to facilitate consultation with CEO includes the development and audit specialists in other member firms; a recommendation of global strategic • Ken Sharp, global leader, comprehensive intranet service with priorities for ratification by the Board, assurance services up-to-date information on relevant together with overseeing execution • Paul Raleigh, global leader, growth professional standards; a worldwide of these priorities. The CEO has and advisory services restricted-entity list; an International responsibility for appointing the Global Financial Reporting Standards help desk; Leadership Team (GLT) subject to the • Francesca Lagerberg, global leader, and topical alerts. GTIL does not provide concurrence of the Board. The GLT assists tax services any services to clients itself. the CEO in the execution of the global • Gernot Hebestreit, global leader, strategy. The CEO works closely with the CHAIR OF THE BOARD The Chair of business development and markets GLT in maintaining global policies and the Board (the Chair) is a proactive procedures, including those governing • Stephanie Hasenbos-Case, global role with a focus on ensuring that the international work for the assurance, tax leader, People and Culture Board functions as a coordinated group and advisory service lines. in support of the CEO on global strategy, • Robert Quant, global leader including but not restricted to provision capacity and effectiveness of distinctive client service by the member firms. The current Chair is Scott Barnes and his current term runs to December 2017. The role of the Chair is pivotal to creating the conditions necessary for a highly effective Board, focused on our strategic global development.
Grant Thornton UK LLP Transparency Report 2016 15 AUDIT QUALITY GTIL views excellence Each member firm is obligated to submit The inspection team, as part of evaluating as essential to the network’s brand, to an inspection of its quality control engagement performance, also reviews with a particular focus on audit quality. system, referred to as the Grant Thornton a sample of assurance engagements. To that end, global resources are provided Audit Review (GTAR), at least once On conclusion of each GTAR, the global to assist member firms in maintaining every three years. The GTAR process organisation issues a report based on audit quality, including: is designed to monitor member firm the inspection findings. The report on a compliance with professional standards member firm’s quality control system • an audit methodology, with supporting and global audit policies and procedures. will report one of the following: state-of-the-art software, that is used globally The GTAR is conducted by independent • suitably designed and operating and suitably qualified partners and effectively (an unqualified report) • policies and procedures contained managers from other member firms in audit manuals that are benchmarked • suitable designed and operating under the overall direction of the against international auditing, effectively except for one or global audit quality control leader. quality control, independence more significant deficiencies and ethics standards GTAR inspection teams review the conduct (an except for report) of audit work performed by each member • protocols that enable member firms • having material weaknesses in the firm. The inspection process includes to consult with the global auditing design or operation of the quality an evaluation of policies and procedures standards team and, if necessary, control system (an adverse report). of the member firm applicable to its with audit specialists in other assurance practice, benchmarking When the GTAR identifies a deficiency, member firms those policies and procedures against the member firm is expected to address • protocols that enable member firms to relevant policies and procedures of the the deficiency and document their action consult with GTIL’s International Financial international organisation. The inspection plan to address the findings within a Reporting Standards (IFRS) helpdesk team reviews financial statements, audit reasonable period of time and submit reports and engagement work papers and appropriate documentation. When • a comprehensive intranet service that files. The inspection team also interviews follow-up actions are required by includes up to date information for partners and people on various matters. member firms to address findings member firms on auditing, financial identified during the GTAR, a further visit reporting, ethics and independence The GTAR inspection team member or remote assessment is made to review standards and guidance on applying assess whether a member firm’s progress in implementing these actions. them effectively. system of quality control is designed, implemented and operated to provide There are equivalent review processes AUDIT QUALITY MONITORING A key the member firm with reasonable for other network services. component of the global strategy is assurance that the member firm and to promote the delivery of consistent, its personnel comply with professional high quality client service worldwide. standards and applicable legal and To support this objective, a dedicated regulatory requirements; and the quality monitoring programme was reports issued by the member firm developed to support the assurance are appropriate in the circumstances. practices of the member firms. This These include leadership responsibilities global monitoring programme uses for quality, ethics and independence, the Sentinel software application and client acceptance and continuance, focuses on the six elements of ISQC 1. human resources, engagement Under this programme, member firms performance and monitoring. are provided with feedback on the design, implementation and operation of their assurance practice quality control systems.
Grant Thornton UK LLP Transparency Report 2016 16 SECTION 6 LEADERSHIP AND GOVERNANCE For the year ended 30 June 2016 the firm’s principal leadership and governance bodies were the Strategic Leadership Team (SLT), which runs the firm as an executive function, and the Partnership Oversight Board (POB), which provides oversight of the SLT on behalf of the members (the ‘partners’). The firm’s membership agreement sets MANAGEMENT OF OUR BUSINESS four-year terms. Sacha Romanovitch out the members’ rights and obligations, CHIEF EXECUTIVE OFFICER The CEO was appointed CEO for a first term on the firm’s governance framework and the has full executive authority for the 1 July 2015. The CEO is bound by the key responsibilities for the management management of the business. Nominated firm’s Statement of Principles, which is of our business. by the POB, the appointment is confirmed the firm’s highest level statement of by an all-partner vote. The CEO may objectives, values and philosophy. be appointed for no more than two FIRM’S LEADERSHIP AND GOVERNANCE STRUCTURE FROM 1 JULY 2016 EXTERNAL STAKEHOLDERS (INC PARTNERS) PARTNERSHIP OVERSIGHT BOARD AND INDEPENDENT NON EXECUTIVES (CHAIR: STEVE MASLIN EX 31 MARCH 2016. ED WARNER AS OF 1 APRIL 2016) SUB-COMMITTEES: RISK & AUDIT: TIM LINCOLN, REMUNERATION & PROFIT SHARING: ED WARNER RICHARD EYRE (INE) EX 31 DECEMBER 2015, CAROLINE GOODALL (INE), DEENA MATTAR (INE) AS OF 19 FEBRUARY 2016, PAUL FLATLEY, TIM LINCOLN, MO MERALI, STEPHEN MILLS, TRACEY JAMES, SIMON BEVAN, NIGEL MORRISON STRATEGIC LEADERSHIP TEAM FINANCE CHIEF OPERATIONS BRAND & CULTURE ENTERPRISE STRATEGIC CLIENTS & INFRASTRUCTURE EXECUTIVE OFFICER ROBERT HANNAH SIMON JONES NORMAN PICKAVANCE KARL EDDY MARK BYERS SACHA ROMANOVITCH WIDER LEADERSHIP TEAM OPERATIONS SUPPORT SERVICES BRAND & CULTURE ENTERPRISE CLIENT QUALITY & BUSINESS RISK & RELATIONSHIP ETHICS QUALITY ASSURANCE LONDON ASSURANCE FINANCE BRAND AND MARKETING PRACTICE DIAMOND PAUL ETHERINGTON MARGARET BOWLER & TAX DEVELOPMENT ACCOUNTS EX 30 APRIL 2016. IS COMMUNICATIONS LONDON TRANSACTIONAL INTERNATIONAL ADRIAN RICHARDS PROPERTY PEOPLE & CULTURE AS OF 1 MAY 2016 ADVISORY DEVELOPMENT PARTNER AFFAIRS LONDON OPERATIONAL STRATEGIC ADVISORY PARTNERSHIPS QUALITY, ETHICS CENTRAL REGION DELIVERY & & EXCELLENCE METHODOLOGIES SOUTH REGION TAX NORTH & MIDLANDS REGION ASSURANCE SCOTLAND & NORTHERN ADVISORY IRELAND REGION INDUSTRIES PRACTICE AND INDUSTRY LEADERS
Grant Thornton UK LLP Transparency Report 2016 17 This is developed with the POB and • monitoring the CEO’s stewardship EVALUATION OF POB MEMBERS A formal approved by the members at least of the business review of the effectiveness of the POB and every three years. The partners its chair was carried out in 2013, led by • oversight of remuneration of the SLT voted to defer updating the Statement one of the INEs. This review consisted of of Principles to later in 2016 to allow • overseeing the principles and criteria an online confidential questionnaire to all the new SLT to complete its for profit sharing partners and will be repeated periodically. Strategic Review. During 2015/16 the POB held all partner • oversight of risk and quality policies meetings, lunches and dinners with STRATEGIC LEADERSHIP TEAM and procedures partners across the whole firm to seek The CEO appoints the SLT, which • recognising that we have a public their feedback on issues of concern to the is responsible for: interest role that extends beyond the partners. In addition during February and • ensuring the firm operates within short-term interests of the partners. March 2016 Ed Warner visited nine office the LLP’s Statement of Principles locations to meet with partners prior to The POB consists of eight members formally taking on the role as chairman to • protecting the goodwill and elected by the partners, three independent seek partner feedback on the role of the reputation of the firm non-executive members (INEs), and three POB. The minutes of POB meetings are ex-officio non-voting members (being the • developing and implementing also circulated to all partners in the firm. CEO and two others – members of the the firm’s strategy executive management team. Elected INDEPENDENT NON-EXECUTIVES • appointing, appraising and (where members are appointed for a period The firm has three INEs with a wide necessary) removing partners, and of three years, and may serve for two range of experience and skills, including determining their remuneration further consecutive terms if re-elected. experience of professional partnerships, corporates and the investor community, • ensuring the firm complies Brief biographies of the POB members and with experience covering a wide with all relevant regulatory at 30 June 2016 are set out in section 15. range of industries including professional and legal requirements Their appointment dates and meeting services, financial, technology, retail, attendance records during the year • ensuring that quality is central charity, and media industries. are set out later in this section. to our work and our approach The INEs are ‘outside members’ of CHAIRMAN OF THE POB The chairman • driving a profitable and sustainable firm. Grant Thornton UK LLP as defined by of the POB, until 31 March 2016 was the firm’s membership agreement, and The SLT for the year ended 30 June Steve Maslin. On 26 November 2015 as such are part of our POB with voting 2016 consisted of the following partners: following a majority vote of POB members rights which are only exercised by the Sacha Romanovitch, CEO; Mark Byers, it was agreed to appoint Ed Warner as the INEs when to do so would not compromise Strategic Client Relationships; next chairman of the POB. Ed Warner is their independence. Each INE serves an Karl Eddy, Enterprise; Robert Hannah, the first independent chairman of any initial first term of three years, and is Operations; Simon Jones, Finance and major accountancy firm in the UK. eligible for reappointment without Infrastructure; Norman Pickavance, Brand This was confirmed by a vote of more restriction, as determined by the and Culture. All were in post throughout than 75% of all partners voting on a elected members of the POB. the year to 30 June 2016. resolution issued on 15 December 2015. Ed Warner formally took over as an On 31 December 2015 Richard Eyre PARTNERSHIP OVERSIGHT BOARD retired as an INE having served five years. independent chairman on 1 April 2016 for The POB is responsible for the protection Deena Mattar was appointed an INE on a three-year period. Ed is responsible for of partners’ interests, standards of 19 February 2016. chairing POB meetings and for providing governance within the firm, and the guidance to the CEO on actual and oversight of the SLT. Its principal potential matters of concern to the duties are: partners. • development of the firm’s Statement of Principles • appointment (and, if required, the removal) of the CEO, subject to the vote of members
Grant Thornton UK LLP Transparency Report 2016 18 The INEs bring their considerable IMPACT OF INES ON THE FIRM’S RISK & AUDIT COMMITTEE expertise to the POB and are responsible INDEPENDENCE The POB is a The RAC is responsible for ensuring that for contributing to the overall governance ‘supervisory board’ as envisaged by the the firm’s quality and risk management of the firm, and specifically: Auditing Practices Board (APB), Ethical framework is appropriate and operating Standards for Auditors issued by the FRC effectively. Its specific duties include: • the firm’s recognition of its public and, therefore non-executive members of interest responsibilities and its • overseeing policies and procedures the POB are not members of the firm or its attitude towards quality on quality and risk management ‘chain of command’. As a result, personal (including ethics and independence) • the firm’s approach to risk management relationships and business or financial and governance interests of the INEs do not bear directly • monitoring and reviewing the on the firm’s independence as auditors. effectiveness of the firm’s internal • issues raised under whistleblowing However, the firm is mindful of the impact audit function and the timeliness and policies and procedures. of public perception, so we require the effectiveness of management’s The INEs attend all POB meetings and are INEs to comply with the independence corrective actions invited to attend partners’ meetings, and requirements of partners and specifically: • overseeing management’s response to meet with the CEO and the chair of the • on a quarterly basis the INEs confirm to to any major external or internal POB periodically. Our INEs also meet with the chair of the POB that they have no audit recommendations key representatives from the institutional financial interest or directorships with investor community from time to time. • monitoring the firm’s relationship any of the firm’s audit clients listed in In addition to their representation on the with its external auditors and the firm’s prohibited investments list POB, Caroline Goodall is also a member external regulators of the Risk & Audit Committee and Profit • on an annual basis they confirm in the • reviewing the firm’s Sharing subcommittees, Ed Warner is firm’s annual declarations process that financial statements. Chair of the Profit Sharing subcommittee they understand and have complied and a member of the Remuneration with the firm’s key ethical policies The RAC consists of four elected Committee, and Richard Eyre, now including independence, confidentiality, members of the POB, the CEO and replaced by Deena Mattar, is a member market abuse, gifts and hospitality, at least one INE. The head of Business of the Profit Sharing subcommittee. and whistleblowing. Risk and Quality Assurance, the national Our INEs contribute to audit quality director of finance and the Head of In the event that there was a fundamental through their involvement in the Profit Quality, Ethics and Excellence are invited disagreement between an INE and either Sharing subcommittee and Risk & Audit to attend as appropriate. In addition, the POB or the SLT that could not be Committee (RAC) which included reviews representatives of the firm’s external resolved following discussions with the of the process to ensure quality gradings auditors, Mazars (UK) LLP, are invited chair of the POB and the CEO, and as a of all audit partners are appropriately to attend. result the INE resigned from the firm, taken into account in determining the fact that there had been such a The RAC met six times last year, and partner profit share. During the year the disagreement would be disclosed in three of these meetings were attended, INEs have also participated in other ad hoc this transparency report. No such in part, by the external auditors. subcommittees as required, for example disagreement has occurred to date in relation to significant property REMUNERATION COMMITTEE (RemCo) transactions, reviewing a proposed SUBCOMMITTEES The POB has two The RemCo is responsible for setting business acquisition, and the CEO main subcommittees that deal with the remuneration of the CEO and the succession planning process. key aspects of governance: the RAC remuneration framework of the SLT, and the Remuneration Committee. dependent upon the achievement of The POB’s oversight of management predetermined criteria and goals. and the establishment of separate The committee, which consists of RAC ensure that the firm complies three elected POB members and at with appropriate corporate least one INE, met three times last year. governance, risk management Further information on the remuneration and quality standards. of audit partners is included in section 13.
Grant Thornton UK LLP Transparency Report 2016 19 MEETING ATTENDANCE: YEAR TO 30 JUNE 2016 MEETINGS APPOINTED SLT POB RAC REMCO NUMBER OF MEETINGS IN YEAR 9 6 6 3 STRATEGIC LEADERSHIP TEAM MARK BYERS 1 JULY 2015 6 KARL EDDY 1 JULY 2015 9 1 ROBERT HANNAH* 1 JULY 2015 9 1 SIMON JONES* 1 JULY 2015 9 6 6 NORMAN PICKAVANCE 1 AUGUST 2015 8 1 SACHA ROMANOVITCH* 1 JULY 2015 9 6 5 3 PARTNERSHIP OVERSIGHT BOARD SIMON BEVAN 1 JULY 2015 5 2 PAUL FLATLEY 1 JULY 2009 5 5 TRACEY JAMES 1 SEPTEMBER 2015 6 TIM LINCOLN 1 OCTOBER 2006 6 6 STEVE MASLIN (CHAIR) 1 JULY 2007 6 6 2 MO MERALI 1 JULY 2009 4 3 STEPHEN MILLS 1 JULY 2014 6 5 NIGEL MORRISON 1 JULY 2015 6 INDEPENDENT NON-EXECUTIVES RICHARD EYRE RETIRED ON 31 2 DECEMBER 2015 CAROLINE GOODALL 15 SEPTEMBER 2010 5 5 DEENA MATTAR FROM 19 FEBRUARY 2016 2 1 ED WARNER 15 SEPTEMBER 2010 6 3 Coloured to represent ‘attendance by invitation’ * Members of previous National Leadership Board
Grant Thornton UK LLP Transparency Report 2016 20 7. REPORT FROM THE CHAIRMAN OF THE RISK & AUDIT COMMITTEE The Risk & Audit Committee (RAC) is the governance body which reviews the preparation and audit of the firm’s financial statements and reviews the standards of internal control, quality assurance and risk management of the firm’s business. It is a standing sub-committee of the Given the nature of the services that AUDIT QUALITY Audit quality is of Partnership Oversight Board (POB). our firm provides, and the competitive paramount importance to the firm and The members of the RAC are all drawn marketplace in which we operate, the to the RAC. In order to ensure that the firm from the POB and appointed by the quality of our services, particularly in is appropriately responding to the output Chair of the POB. As at 30 June 2016 audit, is of key importance to the RAC. from all internal and external regulatory the members of the Risk & Audit reviews, during the financial year to 30 MEETINGS The RAC typically meets five Committee were as follows: June 2016 the RAC has received and to six times a year and reports directly considered ICAEW reports following • Sacha Romanovitch to the POB on its activities. Minutes of the ICAEW practice assurance visit and the RAC meetings are made available • Paul Flatley from our internal National Assurance to all partners. In addition to the RAC Services team in respect of its National • Simon Jones members, also in attendance for at audit file reviews. The RAC also receives least one committee meeting per • Tim Lincoln updates following FRC Audit Quality year, as appropriate, were: Review team (AQR) reports and • Steve Maslin MARGARET BOWLER - Head of international audit file reviews. • Stephen Mills Business Risk and Quality Assurance We have discussed the results of these • Caroline Goodall OWEN BROOKMAN - General Counsel reviews with management as appropriate to ensure quality remains a priority TERMS OF REFERENCE Executive PAUL ETHERINGTON - Quality & management objective, and continue management led by the SLT are Professional Affairs Leader (ex-officio to monitor this area to ensure progress responsible for setting the tone of member of the POB) Replaced by Adrian is made in areas of concern or where the firm’s attitude to quality and risk. Richards Head of Quality, Ethics and weaknesses are identified. More details The RAC’s primary responsibility is Excellence as of May 2016. on the output of reports from our external to act as an oversight of the firm’s risk MALCOLM NORTHOVER - Retired and regulators are set out in section 11. management and internal audit functions replaced by Mark Reddy - National and to review the external audit process. In addition to the above quality assurance Director of Finance as of April 2016 The terms of reference of the RAC, which reviews, the POB give consideration as to are regularly reviewed and updated to ROY WELSBY - Partner Quality & how management ensure that audit quality reflect the challenging and changing Professional Standards and Money gradings are reflected in audit partner and environment in which we operate, Laundering Reporting Officer director remuneration both positively are available on our website. and negatively. Our activities and areas of focus during the year to 30 June 2016 are set out as follows.
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