We welcome all of these developments and work closely with our regulators around the world and at global forums to share experiences and ideas. We have strengthened our global compliance reporting and monitoring systems and continue to invest heavily in innovative technology. In particular, we have invested significant resources in global platforms and analytical tools that meet evolving client and regulatory needs and support the consistent delivery of exceptional and high-quality services. Meanwhile, public policy thinking on audit market issues - including concentration and choice in the public company audit market - continues to evolve. Innovative interventions have been proposed in several significant jurisdictions that may have some positive impact; but could have some negative side effects also. Significant regulatory developments in countries such as Germany, the UK, India and South Africa have shown that the world of professional services remains heavily exposed to regulatory response to business failures and to fast-changing societal expectations of the business community. The European Commission launched a comprehensive review of corporate reporting in the EU in November 2021 which will also look at various issues in the areas of statutory auditing and the supervision and oversight of PIE audits. This is the first step in
a process that is likely to lead to further legislative changes for statutory auditors in Europe. BDO welcomes the consultation and will submit detailed responses to the Commission. We will also continue to engage in broad stakeholder discussions towards improving the corporate governance ecosystem of which the audit profession is a key component. As an organisation with exceptional client service at its heart, our understanding of existing and looming public policy imperatives and the fulfilment of our compliance obligations is central to the way that we work. Regulation, and the scrutiny of policymakers and oversight bodies (across all areas of our operation) continues to increase. Moreover, it is likely that the pandemic will draw in further elements - particularly around the topics of security and quality, given the shift towards remote and hybrid working. At BDO, our firms have for many years embraced comprehensive transparency requirements for enhanced public reporting by audit firms with public interest entity audit clients. Market expectations are often even higher than the regulatory threshold and BDO has sought to lead and give example by the expansive nature and scope of our transparency reporting globally and at national firm level. Our continued active engagement in public policy and
regulatory debates is necessary and expected from a business perspective and from an organisation of our size. Our developed views are sought on issues such as non-financial information reporting, sustainability and climate change, corporate governance, cybercrime, data protection, privacy, and all forms of economic crime as well as on key geopolitical and geoeconomic themes such as Brexit, global trade tensions, global supply chain challenges and international digital tax proposals. BDO will continue to work with the wider accountancy profession in detailed discussions with the relevant stakeholders in these critical public policy areas. Most importantly, BDO understands the urgent need to maintain and elevate confidence in the quality of the core audit and in the integrity of the audit profession. Our regulatory and public policy experts’ frequent engagement with audit policymakers and regulators all over the world is testament to our deep commitment to actively support efforts to develop focused, effective and value-adding regulation. The post-Covid environment will require even deeper engagement in our contact with policymakers and regulators and we are fully committed to meeting expectations in this regard.
TRANSPARENCY REPORT 2023
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