Right across all our businesses
The quality of our work across the full range of our services, including Tax and Advisory, is equally important. It has been a key focus for us internally both in terms of how best to test, measure and enhance quality, but also the levels of investment we need to make to ensure that our quality is at the level that we and our stakeholders expect.
Our Tax Policy Panel was created two years back with the aim of helping our clients to make the right decisions in tax matters, taking into consideration all the risks involved in terms of technical aspects, economics, commercial, reputation and broader stakeholder context.
The panel is composed of senior members, who have a broader knowledge of reputational and commercial risks, and does not just include specialists, but also experts in leadership, quality and risk management.
We recognise that quality in our Assurance services is key to maintaining the confidence of investors and other stakeholders in the integrity of our work.
As a member of the PwC Network, PwC Luxembourg has access to and uses PwC Audit, a common audit methodology and process. This methodology is based on the International Standards on Auditing (ISAs), with additional PwC policy and guidance provided where appropriate. PwC Audit policies and procedures are designed to facilitate audits conducted in compliance with all ISA requirements that are relevant to each individual audit engagement. Our common audit methodology provides the framework to enable PwC member Firms to consistently comply in all respects with applicable professional standards, regulations and legal requirements. The PwC Audit Guide explains PwC’s methodology. The Guide along with PwC’s technology-based audit support tools, templates and content support engagement teams in conducting assurance and related services engagements.
As a member of the PwC Network, PwC Luxembourg has access to and uses Aura, which is the application that powers PwC’s audits and supports its Assurance practices. It provides engagement teams with an application that integrates a broad range of capabilities, including built-in tools to promote audit quality, consistency and ease of documentation. Aura also integrates with a variety of other tools and applications, creating one work space for client work. Our audit work is planned, executed and documented using Aura which supports teams in applying our methodology effectively, by creating a transparent linkage between risks identified and the work done to address those risks, as well as providing comprehensive project management capabilities.
We continue to invest in audit technology that builds quality into the audit and enhances our ability to provide insights to our clients. Our technology is built and implemented globally ensuring consistency across the PwC Network.These new tools that enhance audit quality and efficiency through automation, connectivity and mobility include:
Aura, which provides audit engagement teams with a single instance global software with embedded global, territory and industry specific audit procedures enabling:
Responsibility for appropriate quality management lies with the Leadership of PwC Luxembourg (“our Firm”).
This includes effective monitoring processes aimed at evaluating whether the policies and procedures which constitute our Quality Management System are designed appropriately and operating effectively to provide reasonable assurance that our audit and non-audit engagements are performed in compliance with laws, regulations and professional standards.
Our Firm’s monitoring procedures include an ongoing assessment of the design and effectiveness of our quality management system (QMS), as well as a review of completed engagements (Engagement Compliance Reviews - ECR). The results of these procedures form the basis for the continuous improvement of our quality management system. A full QMS review is performed every three years with a targeted update being performed in the intervening years. The updates monitor progress on remediation of any control issues raised in the last review and assess the impact of any new developments on the internal quality control systems.
The ECR assesses whether an engagement was performed in compliance with PwC Audit guidance, applicable professional standards and other applicable engagement related policies and procedures. Each signer is reviewed at least once every four years, unless a more frequent review is required based on the profile of that signer’s client engagements. Reviews are led by experienced Assurance partners, supported by independent teams of partners, directors.
The results of the quality reviews are reported to our Firm’s leadership who are responsible for analysing the findings and implementing remedial actions as necessary. In situations where adverse quality issues on engagements are identified, based on the nature and circumstances of the issues, the responsible partner or our Firm’s Assurance leadership personnel may be subject to additional mentoring, training or further sanctions in accordance with our Firm’s Recognition and Accountability Framework.