Independence

Financial ecosystems globally rely on confidence in the information they provide. The independent audit is a central element of this ecosystem, enhancing the confidence and trust of investors and other stakeholders, as well as promoting the effective functioning of the capital markets. Auditor independence and objectivity are critical in upholding the public’s trust in the audit profession. Maintaining independence, both in fact and in appearance, is essential to safeguard the integrity of financial reporting and to serve the public interest.

Embedding independence into Deloitte’s values and culture

Auditor independence is established by legislation, regulations, and professional standards that set minimum requirements for all audit firms. Deloitte’s commitment to adhering to these requirements is an integral component of the organization’s Shared Values, which emphasize that integrity is a fundamental, non-negotiable expectation of everything we do.

The Deloitte Global Board of Directors has approved robust independence policies that help Deloitte people understand and meet their independence obligations. These policies are based primarily on the independence requirements of the:

• International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants;
• US Securities and Exchange Commission; and
• US Public Company Accounting Oversight Board.

When local requirements are more restrictive than Deloitte Global policies, Deloitte firms and their people must also adhere to those jurisdictions’ requirements.

Deloitte firms reinforce the importance of independence through strong leadership messaging, dedicated independence resources, and clear accountability.

Supporting our people in a complex world

Audit and assurance services are at the heart of Deloitte’s multidisciplinary model which is a key differentiator for delivering high-quality audits. There is complexity in a world of varying independence requirements across jurisdictions. Audit regulators evaluate each Deloitte firm’s ability to maintain independence according to all applicable regulations. The result is a global regulatory environment that is increasingly intricate to navigate. Managing such complexity demands that Deloitte’s independence with respect to our audit clients is always top of mind.

Deloitte Global Independence champions consistent independence policies and procedural expectations related to the provision of services as well as business, employment, and financial relationships across the Deloitte network. In turn, each Deloitte firm has an Independence Leader who is responsible for overseeing independence matters, including a system of quality management related to independence, and advancing independence awareness and compliance among their people.

Deloitte people’s ability to meet these expectations depends on appropriate information and awareness to make informed decisions. Deloitte Global Independence makes available entity management, approval workflow, and financial interest tracking systems to all Deloitte people worldwide to help them find and track information needed to maintain independence. Additionally, Deloitte Global Independence drives continuous learning for the global network of Deloitte independence professionals and fosters connections across the Deloitte firms and businesses that enable timely collaboration and consultation. These efforts collectively support Deloitte people worldwide in complying with rapidly changing and increasingly complex independence requirements.

Through these efforts, Deloitte people are equipped to comply with evolving and increasingly complex independence requirements. This commitment helps protect the integrity of financial reporting and uphold the trust placed in our profession.

At Deloitte, maintaining independence is non-negotiable – and everyone has a responsibility to uphold it. 

Contacts

Denise Canavan
Deloitte Global Independence leader
decanavan@deloitte.com