How do we ensure quality?

In a challenging environment, PwC’s Risk and Quality Group aims to inspire best practice governance by responding efficiently to market conditions, taking a proactive approach to monitoring risk and simplifying compliance processes. Our governance practices are embedded in all areas of the business to ensure a sustainable performance culture for our people and clients. Our teams are continuously monitored and consulted on local and global regulations and developments, enabling a consistent and high-quality delivery of service.

Enabling the best service

The Risk and Quality Group consistently manages the standard of engagements across each line of service by embedding risk and quality measures in day-to-day activities. This allows each practice to concentrate on providing services to clients, while at the same time giving clients the comfort of knowing they are complying with rigorous standards and policies. Some of our important initiatives in this area include:

Responding to market activity
The global financial crisis is arguably the biggest current challenge to Australia’s economic prosperity. Our timely response to the crisis ensures that we deliver innovative client service, while at the same time protecting and maintaining the firm’s reputation.


We have mobilised a team to support our engagement teams through ongoing consultation. We ensure our people do not stand alone when making key decisions. This includes initiating risk review panels, publishing relevant guidance and developing technology to effectively monitor high-risk engagements.

Sharing and collaboration have also been incorporated into our training and development, and encouraged through firm-wide communications. This ensures our people have the most up-to-date information and guidance to effectively serve our clients.

Simplification
The monitoring and management of risk is vital to us, particularly in the current climate. However, it is also important to provide clients with an environment in which it is easy to do business. One initiative to balance these objectives has been the transformation of our standard terms of business. Through collaboration across the firm, particularly with the Office of General Counsel, we successfully reduced the complexity and length of the terms, while at the same time ensuring the language still protects the firm’s business. Our new client and engagement acceptance system further simplifies and accelerates the compliance and acceptance process.
Firmwide Risk Committee
The Firmwide Risk Committee has been established to formalise the oversight of all risks to which the firm could be exposed. The committee, comprised of key leaders, has developed a Risk Register to document the management of these risks.
Global Risk Management and Compliance Standards
PwC Global requires all firms to comply with Global Risk Management and Compliance Standards. This means each member firm is required to document and explain compliance, and is subject to an independent review. This process guarantees all PwC firms are compliant with network standards, ensuring a consistent standard of service worldwide.
connectedassurance*
The connectedassurance* project is designed to deliver better client service, improved experiences for our people and visible and sustainable quality. The project includes a new global audit technology platform and more inclusive and interconnected working practices.


Ensuring the best quality

PwC aims to achieve sustainable performance. The focus is on initiatives and solutions that will benefit the firm and its clients for many years to come; long-term solutions rather than short-term answers.

Quality system and engagement reviews
Our sustainable review programs, consisting of Real Time Reviews, Completion Reviews and Quality Reviews, are conducted across the firm by internal reviewers, external bodies and PwC Global. The programs support the sustainability of all PwC services, ensuring that rigorous reviewing and monitoring is in place.


Reviews have also been conducted by external regulators, including the Australian Securities & Investments Commission (ASIC), the Public Company Accounting Oversight Board (PCAOB) and the Audit Quality Review Board (AQRB). The overall outcome has been positive, with the acknowledgement that PwC Australia has a strong quality control structure.

Code of Conduct
We have developed a new eLearning module for our Code of Conduct, providing our people with a more interactive, scenario-based training system. To ensure our people are aware of their ethical obligations, we have expanded the firm's existing Annual Compliance Confirmation to include ethical matters. We have successfully piloted this program with partners and aim to roll it out to all staff. A new ethics dashboard has also been developed that brings together results of internal surveys, and measures wellbeing, diversity and training completion.
Managing conflicts: Independent partners
When clients show interest in a particular transaction, an independent partner is appointed. Their role is to confidentially administer engagement clearances and practices from the outset. This, together with the firm’s ethics procedures, means that we can quickly determine who we are able to act for and how any conflict can be appropriately managed with respect to client confidentiality.
Partner metrics
To promote best practice, partners are subject to performance metrics that monitor their approach to risk and quality. The metrics measure a partner’s approach to consultation, training and firm-wide risk management. The metrics also encompass an independent examination of engagement files.



Case study

Corporate responsibility in our operations

At PwC we believe that to serve our clients effectively we must ensure that our own internal systems and firm culture are in good shape. By integrating corporate responsibility into areas such as our risk management framework, supply chain and procurement policies, we become better positioned to advise our clients on the practical aspects of making these changes.

Our initiatives to address the issue of climate change have truly allowed us to put ourselves in our clients’ shoes. In December 2006, PwC became the first professional services firm in Australia to announce a timetable to achieve carbon neutrality. We are also the first professional services firm to publicly report on our greenhouse gas emissions inventory and emission management plan and have them independently assured.

These initiatives allow us to understand what it means for our clients to implement similar strategies and initiatives. Engaging our own staff to reduce their environmental footprint through travel reduction campaigns and interactive online tools has helped us to support our clients’ staff in doing the same.

Through these responsible business practices, we hope to expand the breadth of insight we can offer our clients, while cultivating high standards of corporate responsibility for the broader business community.