Transparency Report 2022 - Hemione Hudson transcript

PwC and the audit profession play a critical role in underpinning confidence in capital markets, and for the UK to remain a great place to do business we need transparent reporting that investors and wider stakeholders can rely on. At a time of geopolitical and economic uncertainty, it has never been more important to build trust.

This year we’ve continued to operate in a demanding environment, navigating significant global events and intense scrutiny of the audit profession. I’m proud that throughout it all our people have continued to support each other and perform rigorous and challenging audits.

We have invested significantly in our audit practice over the last three years, through our Programme to Enhance Audit Quality, which has made a real difference. I’m particularly proud of the work we’ve undertaken through the programme to embed a culture that best supports our teams to deliver high quality audits. We’re pleased by our improved inspection results and other key measures of quality and that the FRC has recognised the positive impact of the programme and the progress made.

At the start of the programme we established an Audit practice with a singular focus on external audit and audit-related services. And as part of our commitment to strengthen the governance of the firm’s audit practice, we introduced our Audit Oversight Body, which is now well established. The Independent Non-Executives who sit on the Body are a key part of our governance structure and we certainly benefit from the constructive challenge and value they bring.

We are well progressed with our operational separation transition plan and to meet the FRC’s deadline for implementation.

We welcome the package of legislative reforms the Government has proposed to improve standards for audit, reporting and corporate governance. We’ve long maintained that all parts of the corporate governance ecosystem have an important role to play to make positive, lasting change.

We will continue to invest in our people, skills and technologies to deliver consistently high quality audits, as well as address the demand for independent, robust assurance over non-financial information, in areas such as ESG and controls reporting.

The importance of transparent reporting and the purpose of audit has never been more relevant and I hope you find our Transparency Report informative and engaging, please don’t hesitate to send me any feedback.