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Our global audit methodology is risk-based and adaptable, focused on what matters most. During the planning phase of the audit,
we focus on the company’s business operations (including the financial Reporting and internal control structures) and identify risks
through consideration of changes in the industry, business, control environment, company personnel, complexity factors and
regulatory environment and then tailor the audit to respond to such risks. As an iterative process, we reevaluate risks of material
misstatement throughout the audit and revise our audit plan as needed. Our methodology is complemented by our unique guided risk
assessments, which are designed to help our professionals focus on what matters.
Our methodology is also designed to enhance how work is performed
We provide our audit teams with the training, direction, resources and assistance they require to evaluate and respond to pertinent
audit risks. As matters arise or evolve that affect the audit process, we respond swiftly with guidance and training to our audit teams.
In the past year, we have addressed a variety of auditing and accounting matters including navigating macroeconomic and geopolitical
challenges; taking into account climate and other environmental, social and governance (ESG) related matters in the audit; addressing
auditing and tax implications for new tax regulations; and identifying and responding to specific industry-related risks.
Every public company audit engagement is subject to an independent engagement quality control review. This review is performed by
a partner designated by the Leadership in our Quality & Professional Practice Network. The engagement quality reviewer evaluates the
engagement team’s significant judgements and related conclusions regarding both the overall engagement and the preparation of the
audit report(s) and determines whether to provide an approval of issuance.
Audit Quality Milestones
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In addition, proper timing and sequencing of audit activities, including timely reviews of work performed and the resolution of matters
identified, are closely associated with high-quality audits. Audit Quality Milestones are established centrally to drive consistency of
engagement teams in project management; timing of when work is done; and necessary focus on engagement staffing, including the
sufficiency and skills, knowledge and experience of assigned resources.
Audit teams
The deployment of resources on our engagement teams is important to the execution of a high-quality audit. The engagement team’s
composition varies depending on the size, nature and complexity of the company’s operations. An Audit & Assurance partner or
managing director has Leadership responsibilities for the engagement and the engagement team. The engagement team may also
include other partners or managing directors and typically includes one or more of the following professionals: Audit & Assurance
senior manager, Audit & Assurance manager, Audit & Assurance senior, Audit & Assurance staff and relevant internal specialists and
Centres of Excellence resources.