Our focus on audit quality

From our leaders

Change is constant. Economic volatility, technological disruption, climate and geopolitical concerns have become the norm. Most recently, we’ve seen and felt the impacts of the election of a new US president, including pending changes to leadership at the SEC that will bring changes in priorities and views that will influence future actions of standard setters and regulators. Although we are all becoming more accustomed to these constant shifts, we still face new complexities and growing uncertainty.

As leaders, we need to find the opportunities to explore through reinvention and find new possibilities to create and deliver value, while remaining grounded in the fundamentals of our business. At PwC, delivering quality and acting with integrity are expected of us and what we expect of ourselves, especially in times of change. This commitment to quality and integrity is foundational to our purpose and values and embedded in our culture, strategy, and organization. It is — and always will be — our number one priority.

Transparency regarding matters relating to audit quality is important to meeting those expectations, which is why we are pleased to provide below a brief update to our 2024 Audit Quality Report. The actions described below are important to maintaining momentum in the pursuit of quality — helping us stay on the leading edge by making connections, evaluating implications, solving complex problems and delivering insights that spark new ways of thinking.

We are proud to consistently serve as a leader on quality within the profession. Thank you for continuing to engage with us as we strive to meet our quality objectives.

Our people

• We are focused on helping to create new opportunities for entry and offering greater access to the profession for aspiring talent, including through Destination CPA.​
• We have increased our attention to existing and potential new activities to raise awareness of careers in accounting and auditing, including additional outreach at colleges and universities and new resources to increase student interest in accounting, such as our Accountants have impACCT video series.​
• We remain focused on providing our skilled audit professionals opportunities for growth and competitive rewards and benefits. We’ve increased entry-level salaries and continue to support performance-based raises and bonuses at all levels.

Our ways of working

• In FY25, we are emphasizing more in-person time together to reignite personal connections, enhance collaboration and accelerate learning and development. This includes additional mandatory classroom training and organized in-person opportunities for our audit professionals.
• Our apprenticeship culture, which benefits from these in-person activities, fosters continuous learning and teaching, providing our people with opportunities for growth, regardless of where or how they work. We’ve provided our people with numerous resources to establish strong team dynamics and prioritize on-the-job learning and teaching. We’ve also enhanced training for new managers and senior associates, which reinforces the impact of apprenticeship and behaviors that enhance overall audit quality.
• We’ve invested in detailed programs to enable our team members, including those at Acceleration Centers, to collaborate more seamlessly and effectively, while providing more consistent well-being and developmental experiences.
  

Our technology

• Our existing methodology and technology, integrated through Aura, support a quality, insightful, and efficient audit today. Nonetheless, the growing use of advanced technology, including AI, is changing and accelerating how our teams perform everyday audit tasks. In FY25, our teams expanded the use of AI technologies (including ChatPwC, Microsoft Copilot, and ChatNational) in performing audit procedures. We provided our audit teams with updated policies, guidance, training, and other resources addressing, for example, considerations related to appropriate direction, supervision, and review of work performed using AI and communications regarding the use of AI.
• Our global Next Generation Audit (NGA) program leverages an AI-first technology strategy to equip our auditors with the latest technologies and digital capabilities to meet fast-changing needs. As we integrate advanced technologies into our audit procedures, we're not just innovating; we're revolutionizing the audit process to enhance quality and drive exceptional experiences.

Our system of quality management

• We are a learning organization, including as it relates to our system of quality management. We identify opportunities for enhancement through a range of monitoring activities, including inspections.
• As with prior years, the results from both internal and external inspections are largely positive, consistent with our culture of quality, commitment to continuous improvement, and the dedication of our people.
  • Our 2024 internal inspections program (generally covering 2023 audits) is complete. 199 audit engagements were subject to internal inspection with a 97% rate of compliance.
  • The PCAOB’s most recent 2024 inspection cycle (generally covering 2023 audits) is also complete, and our 2024 inspection report was recently published. In the report, 10 of the 64 audits inspected were included in Part I.A.
  • The firm recently received a peer review rating of pass for the year ended June 30, 2024.
• We continue to invest in our system of quality management, leveraging technology and data to monitor audit quality and making enhancements when necessary to comply with changes in the auditing environment and regulatory landscape.
• We have enhanced our guidance, methodology and training regarding direction, supervision, and review in certain audit areas, as well as our guidance and tools to facilitate communication with audit committees. We’ve also updated aspects of our independence policies, guidance and training related to obtaining preapproval of certain services.
• We are on track to implement the PCAOB’s new quality control standard, QC 1000, on or before the effective date of December 15, 2025. We have made significant progress in key areas, such as defining the composition, role, and responsibilities of our External Quality Control Function.

Our 2024 Audit Quality Report provides transparency, through the unique perspective of our leadership, into the health of our audit practice, actions we have taken to satisfy our quality objectives, and how the quality of our audits have measured up to expectations - including insights into over 20 quantitative transparency data points related to our culture, people, audit approach and technology, and quality monitoring.

Download the 2024 report

Highlights from our 2024 Audit Quality Report

A snapshot of our FY24 transparency data points