Why is audit quality important? Because the capital markets need quality information timely to function properly. The role PwC plays in the financial reporting ecosystem is underpinned by our ability to deliver quality services, valuable insights and meaningful solutions. Because of this, audit quality is – and always will be – our number one priority.
Quality is embedded in our strategy, business, and culture and we continue to make significant investments to enhance audit quality. Our 2023 Audit Quality Report and January 2024 update demonstrate our commitment to audit quality and transparency with timely, meaningful information about the actions we have taken—and continue to take—to perform quality audits.
Download our 2023 Audit Quality Report to learn more about how our culture, people, technology, and processes come together to help us achieve our audit quality objectives.
Download our January 2024 update for insights into current developments impacting our audits, the results of our audit quality monitoring, and an update on our recent commitment to a series of bold, voluntary actions to further enhance confidence in the independent audit.
What is a quality audit?
Audit quality means that we consistently:
- comply with auditing standards;
- exercise professional skepticism;
- use our experience to identify and resolve issues timely; and
- apply a deep and broad understanding of our clients’ businesses and the financial environment in which they operate in identifying and responding to risks relevant to our audit.
Our audit quality principles are achieved through our audit quality practices and mean that we:
- ask tough questions;
- apply an objective and skeptical mindset;
- embrace the supervision and review process as a way to continuously improve;
- stay current on professional standards;
- have timely, meaningful exchanges with audit committees and management;
- plan our work and resolve issues in a timely and thorough fashion;
- remain alert for issues that need deeper analysis;
- act with professionalism; and
- recognize our role in the capital markets.
Our culture and values
Our purpose is to build trust in society and solve important problems. We expect our professionals to exhibit the core values underlying our purpose, as these values define the expectations we have for working with each other and our clients:
The leaders of our firm recognize that our brand and professional reputation are built on delivering quality. As described in the report, our senior leadership regularly sets the expectation that we act with integrity and deliver quality products and services, and topics such as quality, ethical behavior, and accountability are an ongoing focus of our leadership communications.
Auditor independence and objectivity are the hallmark of our profession. We remain focused on continually promoting awareness of the independence requirements and our policies, emphasizing the importance of compliance, and implementing processes, controls, and technology that facilitate compliance by our partners and staff.
Learn more about our tone at the top, independence systems and processes, accountability and incentives in our 2023 Audit Quality Report.
"Leaders must trust their teams, and teams must trust their leaders in return. This kind of trust is earned through many small acts of honesty and courage over time."
Experience
A career performing audit work at PwC can be rigorous, challenging, complex and ever-changing. We are committed to delivering a meaningful experience that supports development for our people and the skills to serve their professional goals.
With our My+ people strategy (My+), we are working toward a future at PwC where:
there is increased emphasis on growth and development;
rewards and benefits are customized;
well-being is further stitched into our daily experiences; and
there is flexibility to support our people as their lives and needs shift over time.
Learn more about our people experience, including the professional growth and development of our auditors, in our 2023 Audit Quality Report.
Recruiting and retention
We continue to adapt how and where we source talent. We’re actively working to promote interest in the CPA profession and build the future talent pipeline. For example, this year we introduced Destination CPA, a three-day, in-person immersive experience intended to highlight the value and versatility of earning the CPA credential and the impact it has on one’s career.
It’s clear that accountants are in demand, and the development and experience we provide make our people highly sought after in the external market. The experience of our people can have a significant impact on retention, and we remain focused and committed to realizing the full potential impact of our My+ strategy on our people's experience.
Learn more in our 2023 Audit Quality Report.
Upskilling/continuing education
Continuous learning is a fundamental aspect of our culture. Learning that occurs through on-the-job supervision, review, and mentoring is supplemented through participation in virtual and in-person classroom, and on-demand training programs.
We continue to provide numerous learning tools to support the digital acumen of our audit teams, expand the use of digital solutions on audits, and foster a mindset of continual improvement and innovation. This year we have committed to an additional significant investment to upskill our people on AI. Similarly, we are upskilling our audit professionals on ESG-related topics through a variety of training programs and events.
Learn more in our 2023 Audit Quality Report.
Diversity, equity and inclusion
At the core of building trust and delivering sustained outcomes is our strategy to advance diversity, equity, and inclusion to further build on a culture of belonging.
We are proud of the progress we have made in continuing to attract diverse talent into the firm as well as our commitment to enhance the experience of our diverse professionals throughout their career journey. At the same time, we acknowledge that there is still more work to be done, and we continue to challenge ourselves to bring equity, trust, and purpose into every aspect of our business.
For more information about our commitment to diversity, equity, and inclusion, refer to our 2023 Audit Quality Report and our Purpose and Inclusion Report.
Our audit approach
Quality management
Leveraging technology and data, we take a proactive, risk-based approach to designing and operating our system of quality management to achieve our quality objectives. Our system operates in a continual and iterative manner and is designed to be responsive and resilient to changes in the nature and circumstances of the firm and developments in the auditing environment and the regulatory landscape.
As a learning organization, we are continuously identifying and responding to opportunities for enhancement. The new or revised guidance and tools and additional communications, training, targeted workshops, and reach-outs described in the report reflect our commitment to advance audit quality.
Learn more about our system of quality management, including how we monitor audit quality, in our 2023 Audit Quality Report and January 2024 update.
Our 2022 PCAOB inspection report is now available on the PCAOB’s website.
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See how the new equation of people + technology comes together in Tomorrow's Audit, Today — to bring you trust, insights and efficiency.
Rooted in our core values, Tomorrow’s audit, today reflects our view of the future – people-led, enhanced by powerful technology, and digitally amplified. While technology is a key part of how we’re reimagining and revolutionizing the audit experience, it’s our people – with their unique blend of audit and digital acumen – that set us apart.
We continue to build trust through innovative and business-driven products that are human-led and tech-powered, focused on the end-to-end audit experience. Aura, the PwC Network’s cloud-based audit platform, is used globally across all of our audits, driving quality and consistency on a world-wide basis. Our award-winning data visualization, analytics, and auditing tools are designed to enhance our risk assessment process and facilitate automated testing and data validation to support the different phases of the audit - from planning, to execution, through completion.
Learn more about how we combine deep, dynamic, tech-enabled analysis with the digital skills, industry and technical knowledge, and professional judgment of our audit teams in our 2023 Audit Quality Report.
The pace of developments in standards and technology, combined with stakeholder expectations that are higher than ever, is transforming how we perform our audits and requires that we bring together an audit team of individuals with diverse skills, backgrounds, and perspectives.
Our audit teams are composed of Individuals, including team members located at our Acceleration Centers, who bring the right blend of technical capabilities and industry knowledge to deliver quality and value to our clients. In addition, our audit teams leverage our broad network of multidisciplinary specialists to better understand our clients’ businesses, identify and address relevant risks, stay informed on developing matters, and obtain insights related to the audit.
Learn more in our 2023 Audit Quality Report.
Our commitment to the future
At PwC, we are taking steps to deliver on the promise of The New Equation – combining people and technology to inspire and lead the profession and further build trust in the capital markets. This includes:
Expanding our technology platforms to power PwC’s audit capabilities. As the next step in our innovation journey, the PwC Global network is investing $1 billion in our audit tools, technologies and methodologies globally to further standardize, simplify, and automate our audit work to drive quality and enable our teams to deliver a faster and better experience for our clients. With the benefit of a first-of-its-kind relationship with Microsoft, we will leverage the latest cognitive technologies such as generative AI.
- Taking actions to lead the profession. As the needs and expectations of users of independent audits continue to evolve and information flows grow increasingly complex, PwC is committing to a series of bold actions - in areas including accountability, quality, independence, transparency, and engagement - over the next several years that will further enhance confidence in the independent audit.
Learn more about our actions to lead the profession in our 2023 Audit Quality Report and January 2024 update.
“As accountants, we should leverage technology– alongside our emotional intelligence, judgment and professional skepticism – to deliver something bigger with a more efficient, effective process and better analysis and insights.”
Other topics
Find more in our 2023 Audit Quality Report including:
Our role in the financial reporting ecosystem beyond the issuance of audit reports, which includes active participation in regulatory and standard setting activities, the issuance of thought leadership, regular stakeholder engagement, and the provision of permissible non-audit services.
The members and recent activities of our Assurance Quality Advisory Committee.
The legal structure and ownership of the firm, leadership team members, and authority and composition of our Board of Partners and Principals.
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