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Article EU Regulation) Audit (the April 2014 16 of Council the of Parliament andEuropean the of 537/2014 by EU rules mandated Regulation new the with prepared been has in accordanceReport The stakeholders. other and chairs audit committee regulators, investors, with communicate transparently to us for mechanism important an as Transparency Audit serves Report Report. The this approachto underpins and interest our public in the very quality is much audit to our commitment aboutBeing transparent to reporting asFY19. period referred following is The as FY18. Report reporting The the throughout period referred stated. is to otherwise unless 2018, June EYG. ofmember the firms of globalorganisationthe to ‘our’. EY orcollectively ‘us’ ‘EY ‘we’, refers UK’, as ourselves torefer report, we this In limited companyby guarantee. Limited Young &(EYG),GlobalErnst ofUK amember firm is anda members, in England & incorporated Wales limited liability by its aowned partnership, wholly is (CompanyUK, Young &LLPnumber: Ernst the OC300001) In Context This Report relates to EY UK’s principal activities for the period from 1 July 2017 to 29 29 to July 2017 from 1 period the for principal UK’s activities EY to relates This Report 3 Important Messages Leadership Section 1 Important Transparency Report Transparency others. and by raised politicians concerns address the and audits quality higher might deliver even help which measures explore to stakeholders other and regulators investors, engaging actively with been have Therefore we our stakeholders. with relationships positive developing andby maintaining wider andeconomies markets build our role to is It thing. right doing the based building on relationships pride lead; take and in to courage the and enthusiasm energy, have who colleagues of teaming and respect W our purpose, is this of foundation The interest. public the and protect priority serve to absolute our EY it UK,is of chairman the you, tell as can I services, audit our future quality of in the invest to us allows this because least not achieved, have we success the proud am of I while Sointerest. public the of ahead success commercial their put may sometimes firms audit concern that commentators’ some of aware am I public meet expectations. tochange to needs what and auditors, role of the understanding of abetter ensure to stakeholders with effectively firms audit all need highlighted for the have circumstances These in business. trust creates and society of needs the meets still audit statutory the whether questioned example, Carillion, for of collapseinquiry the into parliamentary the report The stakeholders. ofother policymakers scrutiny andfrom under intense come have regulators its and profession audit This year the Chairman ForewordfromEY the UK Leadership messages orking orking W orld – EY UK included included UK EY and our our and trust and confidence shared values: - to communicate more more communicate to Building Building a Better integrity, integrity, in the capitalin the including establishing a major change programme. programme. change amajor including establishing audit quality improving on focused been Limited, have year 2012 the into investigation an of FRC’s part announcement prompted by the have we period. that actionsThe of respect in partners been sanctioned our of any have years, nor five last the in work (FRC) completed audit Council on Reporting fined Financialby been the not EY has UK that complacent notbut backdrop, are we positive that Against audits. into investigations and fines year on There geographies. and functions their of all acrossservice aquality with provide our clients and interest public the serve EY tobetter enable UK that views skills and diverse share to us allows Itlines. EY the service across innovationdrive helping to also while quality audits, deliver high toindustry experience skills and technical andof breadth depth the multidisciplinary model, offers aon built structure, current our believe We have made great strides year. this strides great made have we but profession, in our greater diversity inclusion and even encourage to be done tomore much is There so.doto firm services professional report; first the reporting, gappayethnicity and our gappublishing pay gender of in terms way lead the to decision made the Earlier year, female. EY were this 20% and (BAME) and minority ethnic were black,Asian 15% whom of year UK partners in EY this new 71 welcomed also We EY Foundation. through employment the and education young into people supported 900 have We 2018. Employer Index Mobility Social Top50 in the seventh ranked mobility and social employers for top UK’s of one named EY was backgrounds. UK income from low individuals work for to broaden toaccess helps which programme, Futures our proud Smart especially am of I from industry. experienced and professionals programme, graduates to outreach Foundationour EY sources potential all from talent best nurture the andrecruit to us enable that in activities invest to continue We market. in the people best very the develop and retain attract, our multidisciplinary quality audits, us high helps model delivering as well our people. allAs of professionalism and effectiveness the onrelies sector, and specialism structure, regardless of our business, Ultimately year. previous the identified had it areas the of in all improvements were there said regulator the though, Encouragingly in 2017. 92% to compared audit quality. 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Our reputation is built upon our our hard upon . built Our is reputation ahead, EY UK recognises that we must must we that recognises ahead, UK EY EYUK - Executive Directors for their challenge their for Directors Executive Chairman business business . and - 14,500 14,500 working working the EY the - 6 Important Transparency Report Transparency 2018 August firm 3 on from the resignation Limited, in Rosemary Martin’s resulting UK EY AFGCwhen principle difficult independence proved the meeting challenge of the However, unchanged. was During INEsyear, our three the membership of behalf. IOC’s the on UK EY ofBoard the report to to Chair AFGC,its my responsibility as it the is of purpose the in meeting year and formed last wasIOCThe CommitteeINEOversight broadly.more society of expectations the meet and responsibilities interest public its fulfil to firm the for required is change step another yet recognising that FRC’s Firm Audit the engaged Monitoring in actively (AFGC).alsoCode have Governance We ( Reporting FinancialCouncil’s the requirements of and the meeting matters interest public on firm’s focus the enhancing centre on to continued IOC the work of and the INEs the of activities The report (IOC). covers This Committee Oversight Non Independent EY UK’s Chair of the report as my second offer topleased am I change, regulatory andchallenge and political,investor profile high further midst of in year, the and eventful an In OversightCommittee Non Independent fromReportof Chair the the Leadership messages was appointed as the auditors of Vodafone Idea Vodafone of auditors the appointed as was - . Executive - FRC’s) Executive (INE) Executive Audit Firm Firm Audit Approach, FY18. - reinforce reinforce both to aim we areas, these on By focusing activities. underpin and agenda INE our allour of foundation form the engagement. themes key stakeholder These and emerging lines, regulatory issues four service in the framework controland risk culture, the ethics, are discussed and reviewed have we topics the among focus, priority three of areas these viability. Aligned to its threaten might that issues firm to the of resilience the and lines service the all across issues reputational audit quality standards, on focused have we minds, our of forefront the AFGC the at of aims the With IOC and Westmacott Peter Sir work alongside to committee the join calibre, independent toindividual high another for lookingare now year. We formative and first in its IOC the tocontribution invaluable I association, EY Voice. EY association, and the employees across EY and totalk meet to sought proactively INEs the this, ofsupport In whistleblowing. and integrity, ethics asquality, such addressed topics has it informed how has firm. the This for insights constructive andunique provided assessment ever culture year, first EY UK’s Last INEs. the for akey theme be to continues Culture 2018. January in effect into came which 9), (IFRS instruments financial reporting on standard financial new the and audits bankupcoming preparations for of detailed held reviews example, an we As industry sectors. specific on time our of some focused year, have we in our second Now year. coming in the closely this monitor will INEs arisen. The have shortcomings where initiatives andin people technology heavily investing tocommitted and audit quality work remains in change its step further aneed for the UK year. EY acceptsprevious where all areas in improvements FRC did More liabilities. encouragingly, see the and assets scheme pension of audit the and entities services in financial provisions of aspects of audit prior year, the the to compared principally toin relation disappointing year was the for Review Quality Audit FRC’s the of audit outcome quality, the of terms In position. financial andmodel business firm’s the understanding agoodof us This gives firm. the of executives senior with regular and meetings bilateral quarterly the meetings board at our attendance through UK EY ofleadership regularly senior engage the with also Partner. We Ethics and the Committee Oversight with closely works priorities, IOC the these address toorder In wider interest. public would like would like departments, departments, focus EY UK’s EY – areas to personally personally to the firm is determined to address areas determined is firm the EY UK’s Audit Quality Board, Quality Audit EY UK’s strengths as a firm and benefit the firm benefit and a asstrengths as well as representatives of the staff staff the of representatives aswell as country, country, thank Rosemary for her her Rosemary for thank both in in regional offices both it had key findings had findings key the its Risk Risk its myself. myself. 7 Important Transparency Report Transparency market. audit in the competition torelation Authority in Markets Competition and the of activities FRC the the and of Carillion, Kingman Review the of collapse Brexit the negotiations,ongoing the our role part of vital a is engagement stakeholder proactive that believe We wider profession. auditing the tomaterial matters other and regulatory issues discuss to firms the across INEs opportunity all for invaluable ayear twice authority competent the with meet to INEs This requires Approach.the Firm Audit Monitoring regulator’s the of activationthe year through this formalised been has firms accounting largest the of INEs FRC the and the Engagement with Wider others. amongst and investors, clients involving one of acombinationengagement, external stakeholder with undertake to intend also firm in the defence of lines three the to in relation in impact most make the and efforts our deepen can we believe we where prioritising areas to committed have we discussion, this Following profession. the for external environment the and expectations our stakeholders’ key aswell detail, as in some work INEsby currently the the undertaken of depth and breadth the meeting, reviewed During we this impact. our enhance todo could INEs the more explore to what opportunity provide an to stakeholders outside some and management senior with meeting day afull held our we responsibilities, fulfilling and effective both was IOC the that Toensure Effectiveness year ahead. in the closely monitor progress will we and very are Management in torelation situation visa are by being the exacerbated which function Assurance the within resourcing pressures are there that survey employee engagement recent most in the feedback staff and from this are aware We visits. during these framework controland risk the resourcing and as such We made. be to need improvements feel they understand where first members’ views staff hear to want We Leadership messages are also looking to test our understanding issues ofour understanding test looking to are also - to external stakeholder engagement external stakeholder - one one meetings meetings of the of – especially against the ofbackdrop the against especially focused focused IOC and EY and broader and more structured broader structured more and certain countries. countries. certain on this issue at present present at issue this on UK . This - hosted hosted FY19, FY19, provides an provides events, events, - for example example for hand hand and . We through the EY Dialogue with Investors biannual event. biannual event. Investors EY with the Dialogue through representing investors institutional 35 than more with met INEs the year This investors. programme institutional meeting of our regular continued have we investors, benefit AFGC principally intended is the toAppreciating that chairs. committee audit and clients EY both with engage toopportunity the hadwe where Summit, Quality Reporting FinancialOutlook the as such events EY annual participated in also We itself. audit market in the andin audits, technology of use the in audits, of nature the in developments reaching farpotentially result ofrapidly aprofoundly and as be changing may audit profession period the when particularly audit, in a regulator the of as effectiveness remit revised Review We issues are high on the global organisation’s agenda. globalorganisation’s the on are high issues UK making sure alsowhile colleagues, international our with strong relationships build tome enable roles These 2017. 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We are are We investors. with discussions andmeetings one took part in the Call for Evidence by the Kingman Kingman by for Callthe Evidence part in the took , separately from EY , UK. from separately £5.28 £5.28 will with EY GlobalEY with help to increase the FRC’s impact andFRC’s impact the increase help to trillion assets under under management assets trillion - term value through enhancing enhancing the through term value organisation, conference conference The The INEs believe abelieve INEs EY has continued continued EY has and the Audit Audit and the - quality quality - - 8 Important Transparency Report Transparency David Thorburn, Chairthe of IOC [email protected] me: contactto hesitate notdo work. and roles, Please responsibilities our on questions any answer be delighted towould and Report Transparency this onyour feedback welcome We full. the part playto our will we INEsgoal. very As important this achieve help to commitment apublic made EY has UK that pleased are therefore public. We the and business between relationship apositive restore help toEY tofor essential diminished by high profession the in trust ayear in which failure. In firm’s the ofrisk minimising and the lines service its all acrossreputation firm quality, by supporting promoting audit EY’s in the in improving playto confidence part important an have we believe we andresponsibilities, interest public our to committed are very we INEs, UK’s EY As Conclusion awhole. as economy UK the and profession the in both building and confidence greater trust play in role toimportant an regulator has the believe We 2018. ofend the published is at report the when recommendations the considering to look forward and Kingman Review, the of are supportive priorities. We its understand clearly FRC to regularly the with engage to continue will quality. We audit on foremost and first focus to continue will INEs work asOur Looking (IFIAR). 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January from 1 PRGthe Chair of new be the alsowill report Christabel that are topartner. pleased We audit experienced Christabel avery Cowling, is replacement My seriously. responsibilities interest public take their They extremely professionals. dedicated are people our who of and firm the proud of very amIretire UK. from shall EY I 2018 December 31 On audit. of evolution the of stage next in the our part play actively FRC. will by led project the We future the of audit reporting andin corporate the developments aswell as review, Markets (CMA)and Competition report the and Kingman the torespond will we months next 12 the In Forward looking (FRC). Reporting FinancialCouncil the of independent review the to constructively and positively EY Leadership messages UK also welcomed the opportunity to contribute contribute to opportunity the welcomed alsoUK also joined the Board of EY of Board the joined also UK. I wish wish IUK. - Partner Partner Audit and Business UK EY Assurance the of Operating Cowling, Officer Chief Christabel 14 Important Transparency Report Transparency regulation. and law requirements of beyond the perspective from a relationships client of evaluation an This involves 'Objective by the relationships client of assessment the bear on paramount been alwayshas regulation and law with accordance in conflicts of management and identification the that Operating Conflicts Brexit, included conflicts, year have this important been have year this identified risks principal the aswell asoversight, and governance management risk including generally our approachto of greater detail in respect Transparency provides Report this of 5 Section environment. appropriate control an of maintenance the andrisk of management supports the (ROC) Committee Oversight UK. Risk EY UK The of business entire the over internal risk controlsand responsibility for management EY ofBoard The also regulatory achanging legal and with compliance only ensures not that risk way manage in a management risk to taken dynamic approachis a that fundamental is it profession, the EY and UK both for environment, been important more never identifying managing andhasrisk approachto robust last the over Events GeneralCounsel and PartnerManagingRisk Message Leadership messages holds holds contingency planning contingency , Reasonable and Informed Third Third and Informed , Reasonable in aheavily in ourselves to a higher standard. ahigher to ourselves . An An . . This additional perspective is now brought to brought now is additionalperspective UK (the Board)has (the UK fromEY UK . As involves challenging ourselves to challenging ourselves involves 12 - regulated regulated means environment to broader themes, matters that that broader matters tothemes, months have meant that our our that meant have months . In , and the current current the cybersecurity overall overall framework, framework, Board Party' test. Party'test. . in its its in but but ensure continuity of our client service during the Brexit Brexit during the service client our of continuity ensure to place appropriate are putting andin plans effectively mitigated be managed or can business our on impact significant any that believe we review, from gained this insight the With and people chains. supply protection, work, regulatory data landscape,including our client our business, of areas all across exposure our potential has outcome that of likelihood the deal’ Brexit a‘no as of risk the on specifically more focused have This year, we Brexit onprovided firm the from across partners senior comprises andLeader Conflicts Regional by the chaired high considers also which Panel, Conflicts new a by procedures establishing conflicts our robust enhanced have we interest, public the serve and protect to uphold our obligation we that In General Counsel Counsel General Cameron, Lisa more firm the and auditors independent as our success to fundamental is independently, ethically and objectively providing high for reputation UK’s EY that aware are acutely We compliance. its firm in the supports management risk to approach responsive a that with proactively be to management risk therefore will market, Brexit and audit statutory the into study Authority market Markets the of Kingman’s Review the scrutiny intense and uncertainty of time profession the which framework in regulatory legal and the of future the of terms In Looking forward enhance can we which areas those for provide focus and operating effectively and developed are well tested areas in procedures the and plans processes, in general our that confirm reviews planning Monitoring (FRC) Reporting FinancialCouncil This Contingency planning and period beyond. and response to the changing environment, and to ensure ensure and to changing environment, the to response profession profession increased. increased. year year broadly. and c and we have responded responded have we Approach pages 62 82. and 62 pages - ybersecurity. ybersecurity. The quality professional audit services audit services quality professional John Sir of outcome the awaits We conducted a wide a conducted We EY UK any proposed changes and to ensure ensure toand changes proposed any . A - profile profile matters reputational regime relating regime to crucial aspect of our approach to our approach of aspect crucial Managing PartnerManaging Risk and FRC, cybersecurity . to two requests from the the from requests two to the Competition Competition and the results of those those of results under under operates, this is a is operates, this - . Further . Further ranging ranging of review engage engage . In contingency contingency its its Audit Firm Firm Audit particular, particular, detail detail is . It is 15 Important Trustauditin Section 2 Important Transparency Report Transparency ► ► ► ► on: they focused section, this of pages following the on out set approach.As aholistic enable deliberately diverse, tookwere to we steps development. 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The positive link between employee engagement and cultural health was also made made also was health employee cultural link and engagement between may positive present. The culture hours in order order toin - 21) stakeholders stakeholders ‘reset ‘reset and - 38) (pages (pages start again’ start future 39 - 43) 44 - 45) Trust in audit in Trust 17 Important Transparency Report Transparency practice. audit the within employee fulfilment of aspects core embed the lookto we coming year aspriority for athe work is psychologists’ the of rollout and formalisation the reason For this our clients. brings toit value the and purpose professional overall that confident are we now consequence We others. and games online screens, and plasmaposters alerts, daily news webcasts, emails, as such methods delivery different of avariety delivery, EY uses of UK effectiveness the Toincrease firm FY19 the part of is ‘Trust’, called which co Partner ManagingManagement Risk the andPartner Managing Assurance the Conferences, independence privacy, security, crime, datadata audit quality, financial on focus aparticular delivery, with quality in service EY year by the each assessed these reason, this For our values. align with words our leaders’ how on points emails as such measure, others, to difficult and halls our town as such these, of some While organisation. by mostour valued are that behaviours our the people to communicate to potential the have leadership from our communications andwith interactions All business. for our our sets leadership tone the in assessing our work continued also have We interest. public the protecting roletheir understood they quality survey audit in our latest are that pleased playpeople in defining role our critical the strategy, and 2020+ Vision EY the on our business for tone the set leaders Building Better Working EY Chairman and The World.UK EY other ofa the purpose with our connection people’s strengthening on heavily focused year our pasthasleadership in mind, the over this With self in professional lossthis address to bodies Sosociety. to it provides value the makes and difference it the of sight lost has profession the recently that suggests research Our society. and community globalbusiness the affected significantly have that shifts politicaland major economic witnessed also have We (AI). intelligence artificial and world by being robotics our transformed watched remarkably period, have a In short we Tone at the top Case Study: Building a Better WorkingWorldgame EY from across studies inspiring case video our Numerous onpurpose. delivered firm have asa we and teams Complementary content. selected all of inclusive and collaborative keep toaboardquiz and elements uses but adiscussion on based game is The daytheir with connects it how played face Better Working game The is World continued to work with cognitive psychologists to assess what gives people fulfilment in their a As in careers. their fulfilment people gives what assess to psychologists cognitive work with to continued UK business are now being widely widely being are now business UK game cards and even the box itself itself box the and even game cards , health and safety and other risk management topics. In addition, at one of the FY18 Partner Partner FY18 the one of addition,at In , management risk topics.other and safety and health as part of our work to help reshape the profession, auditing the help reshape work to our of part as to these efforts, we also launched a new new a launched also we efforts, these to Survey scores Surveyindicate a Our latest was was motivating tothem who felt EY’s purpose 7% as an auditor in providing independent assurance, supporting strong capital markets and markets capitalsupporting strong in providing independent auditor an assurance, as – EMEIA engaged in a campaign emphasising the importance of the EY purpose in delivering EY in delivering the purpose of importance the emphasising acampaign engaged in increase increase in those - to service service - day role day Risk Management team. A range of different topics are covered to include include to are covered topics different range A of team. 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For this reason we place a lot of emphasis on emphasis of alot place we members reason alike. team Forand leaders this culture ► ► specific Audit ► ► ► Support Team Team (AQST) Support Audit the and (EQCR) Reviewer Control supported by Teams the EY Expert our Model of basis forms the which and in 2016 approachlaunched audit practice our Thinking across (PLOT) Led Outcome Implementing Purpose views of junior team members. team members. junior of views the managers solicitsenior managers and which during teams for audit (TPEs) Events Team Planning practice examples best and quality reviews ofexperiences share we during webinars, which alongwith training and academies, summits Quality below) (discussed recipients Coins Culture Audit the of stories Publishing Trust in audit in Trust their firm their - making by an organisation’s people people also making are organisation’s by an - to - day activities. The FRC The aindicated activities. day - wide wide culture, providing on examples Engagement - oriented oriented Quality Quality Quality Quality – an 19 Important Transparency Report Transparency Report. the of results the that expect We promoted in programmes we of end the UK, we in the assessment EY cultural our 2017 of success used Having Tone at the top Case Study: Audit Quality Culture CoinsReward Programme exceptional audit quality stories in FY18. in FY18. quality stories audit exceptional levels. all people for at nominations encourages organisationOur success. celebration acollective and camaraderie of asense promote to helps provides scheme the that recognition social are personal, the stories andaward the Although EY values’. ‘living the of benefits the affirm like’ we andlooksgreat ‘what examples of with provide others we way this In auditors. all to newsletter in aquarterly receivers coin all of stories publish quarter. the We subsequent in the colleague another to‘gift’ tocoin second agiven then is recipient coin The quality values. our living audit quality and audit tocontribution coin the receive to colleagues nominate asked They to were offices. 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FY18 FY18 The bi The to introduce and promote programmes designed to increase cultural health, and following the the following and health, cultural increase promote programmes and designed tointroduce to - annual nature of the assessment will provide a lens as to the impact of the various the of impact the to asprovide alens will assessment the ofannual nature FY18 2019 , as well as providing insights into how our culture has evolved more generally. generally. more evolved has culture our how into providing asinsights well , as - culture assessment will be available to be reported in our 2019 EY UK Transparency EY Transparency UK be reported in our 2019 be availableto will assessment are planning to undertake undertake are planning to Trust in audit in Trust 114 - – monetary reward for those who embody embody who those reward monetary for a gift that recognises personal personal recognises that agift people were recognised for their their for were recognised people another cultural assessment assessment cultural another by by 20 Important Transparency Report Transparency ► ► ► ► ► ► out: set we pages following the On audit high ofculture non various have addition,we In compensation. have results review inspection Furthermore individuals. the of performance review in the are reflected fairly inspections audit quality and goodunsatisfactory both that panel ensures The internal external quality inspections. and the including grades from factors,anumber of considers performance review The Panel. 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On in 88% of 67% only no (just limited requiring graded improvement than more as by the inspection recent most in quality ratings. the In increases consecutive years of three following recent regulatory results drop in our most the given wanted, we consistency the achieved not have we that quality, know we in audit improvements delivered have we believe we Although needs. business address specific guidelines, to professional and and laws local comply with to necessary as them supplemented (IAASB).Board Standards Auditing Assurance and ControlQuality on Standards International the requirements of the meet These EY has UK objectivity andour independence embedded The Quality The results of our Audit Quality Survey Quality Audit our of results The specialists skills and on Information findings external internal audit andinspection our of RCA process (AQR) Review Quality internal Audit our of results The (PCAOBBoardand Oversight Company Public Accounting US the Accountants Chartered of (Institute ICAEW’s the Team (AQRT), Review Quality FRC’s by Audit the conducted audits UK’s EY of external inspections of results The Our whole firm, not just the audit practice, appreciates the importance of our role as auditors. role as our ofimportance the appreciates practice, audit the firm, just not whole (SAQ) programme programme (SAQ) SAQ programme programme SAQ and designed and implemented a comprehensive set of global audit quality control policies and practices. practices. and policies quality control global audit of set designed and acomprehensive implemented throughout our organisation. We are committed to serving the public interest and the need to maintain maintain need to and the interest public the serving to are committed We our organisation.throughout all UK’s EY , our performance review system includes quality grades for , includes system review our performance quality, such as the Audit Culture Coins described described Culture earlier. Coins Audit the as quality, such audits audits and consider audit quality from the viewpoint of key stakeholders: investors, audit audit key investors, stakeholders: of viewpoint quality from the audit consider and the activities of the Audit Quality Board (AQB) Board Quality Audit the of activities the inspected were were inspected a direct adirect . partner, opinions,are partner, sign audit who quality. We are proudof resultsthese and contributedtowards thedelivery quality of audits during our Our annual audit quality survey results show that impact on the audit quality quality grading. audit the onQuality impact audit people believe 90 graded as requiring no more than limited improvements, limited compared improvements, to than asmore graded requiring no - monetary recognition schemes in schemes recognition monetary % EY adopted UK in in out a out believe believe England England and detailed commentary on these results and our response. our response. and results these on commentary detailed eight percent percent points eight EY places sufficient emphasis on audit FRC, these global policies and procedures andprocedures and globalpolicies these Wales) that they delivered, supportedor ) Trust in audit in Trust although 82% of our FTSE 350 audits were were audits our FTSE350 of 82% although subject to a performance conducted performance review ato subject staff Quality Assurance Department Department and(QAD) Assurance Quality . For levels above manager manager abovethe For levels . (ISQC) issued issued (ISQC) below the FRC 90% target), target), overall FRC the 90% below place to place grades are linked grades are linked individuals to . reward aand reward promote by the International by the Our audit ethos is audit ethos Our 98 % FY18 of ’ 21 Important Transparency Report Transparency programme. the delivery and of in investment the toleadership of commitment continuous programme been hasthe our SAQ of success the Key to in our investment going into decided that our profession scrutiny intense the on and FRC results 2018 our to in relation Every focus major their deliver at they when member work wanted topeople teams as were recognised andpeople identifying our best in workshops many hours spent differently. We coaching were trying and to well do didn’t we what deliver to want andhighly motivated our that knew We different try approach.a to wanted we soarea in this initiatives various toneeded we that cognitive with our work commenced we During 2016 improvements. reported in May programme up the were those set hadwe after completed audits for FRC results The through. first followed and We tools. analytics dataof suite a EY Helix, globalEY in the in technology investment $400m around aprogramme us 10 developing based in This resulted action. take needed towe the where areas determine to goodlike, looked what ascertain programme the early of phases the In SAQ the for Board the established we response, In basis. consistent aon wanted our stakeholders level the quality at deliver audit todo toneeded we what wrong and carried we 2014 In 2014. in Maypublished our FRC review of results the torelation UK acomprehensive in audit developed quality and globalinvestment significant made a EY has The Quality Case Study: Audit Quality Summits these events these audit of part As audit profession. the facing challenges the reflecting and results FRC inspection recent most decline in our the to response again'in start and 'Reset theme the had summit recent most Our stakeholders. other and from regulators hear also quality. We audit directors bring together that Summits Quality Audit UK year EY hosts Each programme also established a programme office and a regular reporting regime to the AQB to ensure actions were identified were identified actions ensure to aregular reporting and AQB programme the regime a to office established also UK year year we of EY of in in committee chairs, investors and the FRC. Our EY UK Independent Independent UK NonFRC. EY the Our and investors chairs, committee Sustainable Audit these teams for a couple of hours. From this rich material they developed a model of what people dopeople what ofamodel developed they material From rich this hours. of couple for ateams these programme area for for area UK (the Board).(the UK and senior managers. The summits provide a launch platform for new initiatives aimed at improving improving ataimed initiatives new platform for launch provide a managers. summits senior The and the Audit Quality Summits, we we Summits, Quality Audit the organise organise , now in its fifth year, is part of this initiative and initiative this year, of part , is fifth in its now . 2016, 2016, - SAQ programme SAQ enhance enhance out RCA on RCA out SAQ us into into us when we were delighted that 85% of our audits were graded as requiring limited than were asmore graded requiring audits noour of delighted 85% that were we when FY19 FY19 a SAQ strategy day. At the most recent meeting, we reflected on the disappointment we felt felt we disappointment the on reflected meeting, we recent most day.strategy the At SAQ a . best best coaching to improve audit quality further. We already had a coaching network and network acoachingalready had quality further. We audit improve to coaching FY18, FY18, The role of the AQB is to oversee all matters relating to audit quality and set the agenda the quality and audit set relating matters toall oversee to AQB is the role ofThe we needed toneeded we – the results and invested significant time and effort to understand where we had gone gone had we understand where to effort and time significant invested and results the AQB AQB the EY Expert EY Expert Model. the Quality programme (SAQ) and the analysed feedback from our people and leavers and used surveys and focus groups groups and focus surveys used and leavers our andpeople from feedback analysed . alongside alongside as a permanent aspect of our governance structure, reporting structure, our directly governance to of permanent aspect a as excellence quality audits. high produce and excellence we we held off held address the address the ‘Reset ‘Reset hosted hosted our our work on project work project on - site strategy away days for the for daysthe awaystrategy site organisation and start and a series of plenary debates that included included hearing directly from that plenary of debates series a psychologists. problems and behaviours causing them. We decided lookat decided to We them. causing and problems behaviours Since then, we have been been have we then, Since again’. in workstreams workstreams , in particular in a new audit tool, EY Canvas, and in EY Canvas,tool, audit new in in aparticular , . The psychologists interviewed individual team interviewed each The . psychologists partly management (discussed later in this section). this in later management (discussed This means a further further means a This The feedback from our feedback The Trust in audit in Trust over 400 partners 400 over originated originated each led by a partner. partner. by led a each Audit Quality Board (AQB) teams: teams teams teams: is - Executives (INEs) also attended attended also (INEs) Executives using this model, model, this using under. With this backdrop we this under. With Many existing initiatives focused on focused existing Manyinitiatives AQB. AQB. We from our disappointment disappointment in from our , step change and change step associate people were, and were, are, people involved involved that had developed developed had that RCA in in RCA SAQ programme SAQ We benefited benefited from We which has been been a has which that year year was that partners, partners, psychologists to psychologists additional . The the the 22 Important Transparency Report Transparency The limited than more requiring no audits FTSEof350 90% of FRC’s target the achieve helping us aswell as should aswe aswell done not have we where areas the respond toto help us will practice. These audit the priorities for the established programme has SAQ and the to enhancement an approved has AQB For the FY19 reviews. the of outcomes address the to process sanctions and rewards the defining to contributes alsoand informed about The is AQB reviews. quality inspection internal external audit and At them. topresent to teams audit selected of members periodically AQB invites The taxation. of audit reward the and and performance including culture, topics other ofrange awide on and actionsconsidered agreed AQB During the FY18 from up be followed tomatters on AQB the topresent business from the p onhours hours, audit unstaffed partner associate andexternal quality reviews, The activities. SAQ the regular on receives updates AQB The AQB. the work of the observe toin order meetings the attend toare invited (IOC)meetings Committee The AQB The Activities theof AQB Quality EY we keep auditors accountable for delivering for delivering keep accountable auditors EY we top four priorities priorities four top the to presented is which work, AQB’s the on prepares areport AQB the chair of meets monthly meets 1 4 AQB AQB 3 2 - also reviews reviews also SAQ Reinforce focus focus Reinforce Model Expert EY our with behaviours desired Promote are are to: and Establish Establish an Team Quality SupportAuditour Enhance . 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It is intended that the committee committee the that intended is It AQB. the of Committee Trust in audit in Trust - the - job coaching through through job coaching 25 Important Transparency Report Transparency audit quality. of expectations increasing the keep with pace Quality Audit had high therefore quality. 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FTSE 350 inspection results results 350inspection FTSE report and summarised on the following pages. following the on report summarised and (1) – 9% inspecting our audits (1) We are enhancing our SAQ p SAQ our are enhancing We 92% 2016/17 (11) 8% (1) required 0% EY 3 years average = 85% = average 3 years EY (0) . 81% 2015/16 19% (13) We believe believe We (3) 0% (0) Improvements required rogramme rogramme UK in in UK that most of the specific specific the of most that June June 100% Nevertheless we recognise that a further change further step a that recognise we Nevertheless ‘Reset and start again’ start and ‘Reset to ensure we address any other issues identified identified and issues any other address we ensure to 60% 70% 80% 90% 10% 20% 30% 40% 50% 0% 2018 Trust in audit in Trust 67% : 2017/18 (12) 28% 6% All inspection results inspection All (5) findings findings driving (1) Significant improvements required 88% as the theme for our recent recent for our theme the as 2016/17 (15) 12% 0% (2) the decrease (set decrease the (0) QAD RCA; RCA; 85% 2015/16 and the the and (17) work has work 15% 0% (3) 26 (0) Important Transparency Report Transparency below. are discussed These action. RCA have and carried outWe goodpractice: of areas following the highlights AQRT The ► ► ► ► reviewed: audits quality of overall the contributed to having as initiatives following the FRC the noted report, its In Quality ► ► ► ► reviews audit Individual Our response Our Area Focus on improving project management management improving on project Focus AQST the of enhancement Continued by led project external psychologists aof findings the of out Roll programme Quality Audit firm’s the of enhancement anddevelopment Continued training to help teams help audit training to and further provided support has firm the where area an revenue, audit of in the analytics dataof Use scepticism applied professional has team audit the how challenged and been has management risk how capturing significant ofin areas conclusions and audit judgements the of Clear explanations industries in these FRC the normally sees going industry experts beyond what of involvement and investments and goodwill as such areas in oversight and experts, including coordination co of,and Use year audits first auditors,some on particularly with, component and involvement of,oversight Groupteams’ audit – - ordination with, specialists and specialists with, ordination inspecting our audits inputs in relation to conduct provisions in financial services entities. entities. services in financial provisions conduct to in relation inputs Increase areas of focus in relation to conduct provisions. conduct to in relation focus of areas key the on presented specialists conduct our communications the part ofAs practice. in the involved partners ITpartners associateand and partners, technical audit EQCRs, all with findings provisions, auditing loss in loan involvement specialist of appropriate level For audits FY19 appropriate. approachwas the challenged whether audits. these of aspects anumber of covering questionnaire adetailed developed bank We audits. of At the time the report was issued we had already been engaging with the the had engaging already been with we issued was report the time the implemented improvement implemented the extent of challenge and assessment of management’s key assumptions and management’s assumptions key of assessment challenge and extent of the depending on the circumstances of each audit. 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We wasguidance updated the ensure to audits on completed the actions referred to in our response on the finding on conduct provisions finding conduct onthe onin our response referred to actionsthe completed the audit of collective loan loss provisions in financial services entities. services in financial provisions loss loan collective of audit the FY19 again, having received areceived again,having FY19 has collective loan collective detailed briefing our briefing quality leadership. detailed from Trust in audit in Trust audit of collective loan provisions as an area an asprovisions loan collective of audit loss provisions to our audit our bank toprovisions loss collective collective 28 Important Transparency Report Transparency period that of in respect partners been sanctioned our of any have years, nor five last in the completed complacent, been have that investigations of alist website its on FRC The discloses respectively. £59,000 and £1.8m of fines reprimand, payment ofand the former partner firm athe receiving and the both involved which of terms the 2017, in October asettlement of way Distribution Computer 2000 known (formerly as the into FRC’s investigation Transparency Report, the 2017 UK EY in the announced As misconduct. potential of in cases actiondisciplinary professional to subject andregulated firm Our is Regulatory actions Quality Our response Our Area response Our Area about the fact that fact the about – inspecting our audits based EU PIE audit audit clients. 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We are positive, but notbut are positive, announced. We by the FRC on audit audit work FRC by the on have amended the guidance in guidance amended the have - audit audit audit tax services for UK for audit services tax of Tech Data Limited Limited DataTech of concluded by by concluded . - 29 Important Transparency Report Transparency banking audits. our of some on PRA reporting the requirement for written to specific the aswell as 9, IFRS as such standards accounting in major new interest their given important particularly This is regulators. three all with relationship and sector. services financial quality in the in audit interest particular are showing (PRA), regulators, services financial FRC the The and Financial helpful reports thematic these find take. 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Having considered the review points raised by the AQRT, by the the raised points review considered the wide Having our audits. toprocedures inspecting our audits FY19 actionFY19 public : A comparative analysis of transparency reports of firms firms with of reports transparency of analysis comparative . s ector were monitored through the next audit. 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Report’. audits agreed agreed This review, review, This actions with with actions 30 Important Transparency Report Transparency report. transparency year’s in next findings relevant address the be made public, will we report the Should report. the of issuing the appropriately year following in the been addressed not have deficiencies these that believes PCAOB public the report only made if is operated. This processes wider quality control in the deficiencies any out setting firm the report private to provides a also public PCAOB the report, the toaddition toengagements three chose PCAOBThe during 2017. 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We strive strive We take. . whenever whenever of our people have dynamics, identify default behaviours and set personal strategies to improve their their improve to personal strategies set and behaviours identify default dynamics, ethnicity to drive positive change, a diverse and inclusive culture, culture, and and diverse inclusive change, a drive positive to required required people people join, however long they stay, the exceptional EY experience alifetime. EY lastsexperience exceptional stay,the they long however join, to increase the diversity diversity of the increase to - paced and constantly evolving sector where the ongoing success of our our of success ongoing the where sector evolving and constantly paced and gender includes targeted development programmes such as Career asCareer programmes such targeted development includes unconscious bias unconscious strategy we we strategy , with , managers. Our managers. 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Workat Community’s The Race In Business signatory early anofbecome also have Ruby McGregorand Baroness Parker Review in the Charter. our involvement Following At Holding Diversity and inclusiveness - line with our commitment to increasing the proportion of ethnic minorities and women in our leadership, in our leadership, EY UK women minorities and ethnic proportion of increasing the to our commitment with line EY UK continue to monitor rigorously our performance as an inclusive employer, setting ourselves clear diversity diversity clear employer, ourselves setting inclusive an rigorously performance as monitor toour continue year, as our partner pay data is not available at the same time as our employee pay data, we will be publishing be publishing will employee pay we asdata,our time same the at availablenot is our partner data payyear, as we aim to go beyond what is required and are proud signatories of HM Treasury’s in Finance Treasury’s Women HM required is are proud signatories ofand beyond what goto aim we ourselves to account . measured over a rolling rolling three a over measured 10% In line line In black, Asian and black,Asian with our focus on race and gender, we voluntarily published our ethnicity gap. payethnicity and our published race gender, voluntarily we on our focus with UK we UK we EY UK minority ( minority ethnic and 24% average) (three representation partner UKnew EY 10 21% comprises representation UKpartner EY - year year period. 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The Smart Futures Futures Smart The our profession. and work Institute Institute 10 works with a range ofarange with works access access to work the workplace, covering induction workplace, covering the entry - month programme has supported over 290 young people from 180+ schools and colleges colleges and schools young from 180+ people over 290 programme supported month has to join a global organisation and continue to learn and develop new skills. skills. new develop andlearn to continue and aglobalorganisation join to - participants level level qualification to strengthen their employability their prospects strengthen to qualification sectors. programmes Evaluation shows a 70% increase in students like like in students increase a70% shows Evaluation ’ options and ambitions. and options ’ employers, employers, including 36 . EY UK, from 78% service service 2019, Of creating creating , coaching and mentoring. and , coaching the who now feel more confident about finding a job, with 53% 53% job,with finding abouta confident more feel now who the top 40% the top programme 16 programme gives 422 583 an attractive alternative to university for university to alternative attractive an line. of Smart Smart businesses across the legal, government, banking, legal, government, the across businesses 37% . (72%) (72%) apprentices joining most Our people Our of them are of themf - week programme programme aweek offering by supporting those by supporting - deprived are aligned 17 year olds from low income income from year oldslow 17 Futures . Prabjhot emale. . Since initiatives initiatives postcodes future, future, EY UK to ourAssurance then, new new then, returning work returning to participants Chartered Chartered to help help widen to in in talented talented in FY18 FY18 structured structured September EY UK EY across 50 Important Transparency Report Transparency Diversity and inclusiveness ► ► ► health At be complex. can consequences and causes the and are affected, life of walks more are becoming problems health Mental M Case Study: ental EY Over control. cannot they worrying what aboutrather than controlcan individuals what the anxiety manage in to how Empowerment in knowledge programme, health Our Thrive, therapist by paidour insurer. therapist A insurance, health health, occupational Our peer support. learning enables and that Our fast UK we we UK issues: psychological care pathway provides clear guidance onguidance provides clear pathway care psychological employee 1,300 1,300 health EY @ - track psychiatric referral process allows people experiencing acute symptoms to be referred be referred acute to symptoms experiencing people allows process referral psychiatric track are focusing on raising awareness and improving improving and raising awareness on are focusing Thrive - led Mental Health Network organises a buddy scheme, described as ‘transformational and vital’,and ‘transformational abuddy described as organises scheme, led Network Health Mental people attended our webinars during during our webinars attended people FY18. 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We joined forces with Mental Health First Aid England England First Aid Health to Mental with forces joined We workplace, recognising workplace, symptoms recognising an employee employee an widespread society, widespread in our features a rolling quarterly theme has rolling that theme quarterly a features experience a mental problemhealth condition during lifetime; their 1 in 4 adults partners completed by Mental assistance programme programme assistance Health First Aid the focus on focus the and understanding understanding employees available support andsupport available in themselves and in themselves Our people Our anxiety. yet they often remain remain often they yet course will experience a mental health and 600+ 600+ and support for support workplace adjustments. workplace deliver deliver a 1 in 6 people how to access it, including including it, accessto how others, and focusing on focusing andothers, focused on focused at at work. current hidden. hidden. webinar webinar those with with those People from all from People discussing discussing directly directly mental mental to a to 51 Important Transparency Report Transparency new embrace desire toand creativity their demonstrated have they so,do empowered working. to When ofagile waynew really this have enjoyed people Our methods. traditional using fit aatarrive them to refining controlled way, quickly in aand to were able sprinting teams before doing this, again. ideas their By refine or continue to whether decide to offices enabled local which sprints, these of success the gathered around wasData period. ‘sprint’ ashort over test improving on workshops held We People our people. tomatters what on focus us help to themes into forums other and meetings gathered during these feedback distilled the have We coming months. the expect over should they what and transformation, assurance of aspects different our onpeople of all with engaged they meetings, where our of each visited team leadership Assurance the 2017, autumn In offices. in localtheir changes transformation the of ownership our feel people equally that is important It ways.andin new work be innovative to permission the have they they feel that important is it so activities, our transformation around in our excitement share topeople our want We Increasing audit quality. sustainable toarisk pose may long hours ofculture a that aconcern people help andtoour experience respond engagement fulfilment and of level the increase to initiatives other introduced numerous also have we activities transformation assurance Through our work. fulfilling Centre Audit making better use are alsoearlier. We discussed as automation, including actions, of avariety through expectation meet that toworked have year we past the Over from careers. their greater fulfilment are people looking many our for of that was Assessment EY Cultural 2017 from our observationskey the of One Building fulfilling careers Case Study: People sprint in Bristol communications between the team members throughout. team members the between communications regular clear were andthere and these, to held period, accountable were time deliver in the they to going was individual each what of set expectations were clear there working. when experiment The best worked of patterns new try toempowered felt who population,junior more in the pronounced were most results The together. was team the when place took coaching because received people coaching frequency quality andof the in increase asignificant aswell as own their on marked views people’s improvement ain experiment showed our of results The commitments. daypersonal working their their around manage day to and the peak ofperiods travelling at avoid topeople were worked, allowing hours those when flexibility more around hours, introduced but contractualtheir tochange anot This was week. that in toneeded they what achieve to time their used they how decide to individual each up to was it hours these Outside two a for where, hours’ ‘core of concept the more This way.experiment by introduced dynamic in balanceworking a people’s improve and try toworking undertook on experiment anpatterns we Bristol office our In - week period, all audit teams committed to being together between the core hours of 10:00 to 15:00. 15:00. to 10:00 of hours core the between being together to committed period, teams audit all week sprints of Excellence in Belfast. These steps were aimed at freeing up time for our people to spend on more more onspend topeople for up our time freeing ataimed were steps These in Belfast. Excellence of engagement around transformation audit audit innovation, where we have made a significant effort around launching bots and increasing increasing andbots launching around effort significant made a have we where innovation, work/life work/life working working balance, productivity and recognition, while also trialling to trialling ideas new also recognition, while and productivity balance, patterns and new and innovative ways to recognise success. recognise to ways innovative and new and patterns - for of offshore Global offshore of - purpose finished than by quickly product more finished purpose regional offices for for regional offices Our people Our introduce changes changes introduce Delivery and Delivery Services a series of ‘Town Hall’ Hall’ ‘Town series of a into the business business the into work/life work/life work/life work/life the EY the balance, 52 Important Transparency Report Transparency firm in FY19. be adoptedwide subsequently our of parts deployed in some in FY18 waspackage reward our total payof variable element an how The refresh. pay variable the of components key driven has the locations,geographic and markets lines, service ranks, from all participants groups involving working and numerous Cultural Survey, Survey our GlobalFeedback from our people, gathered through People pay depends that bands our Remuneration of objective The Reward the Group by Leaders Connect facilitated and their support can they how discuss to meet Groups, counsellors Connect where acounsellor. quarter with coming the for activities discussing and feedback obtaining ongoing on afocus with LEAD cycles Critical are feedback toquarterly direction. in that grow can they and how goto want they understand where help them to also performance, their but our aboutpeople talk to to just not is aim The conversations. frequent more with ahead looking ayear to performance twice atbackwardsfrom lookingpeople our with conversation the change need tothe on LEAD focuses which and replaced September globally 2017, launched in was and LEAD(Leadership Development). LEADof Evaluationintroduction the was result this tocontributor significant A career meaningful conversationsmore having andtimely feedback careers. our transform we As LEAD Building fulfilling careers business. element element refreshed refreshed was a more traditional appraisal system based on ratings and a forced distribution distribution curve. aforced and ratings on based appraisalsystem traditionalamore was are reviewed annually and pay increases usually have two have usually increases pay annually and are reviewed : : a transformational approach to career, development and performance individual individual can The The of our total reward package to ensure that the scheme is better understood and aligns with aligns andwith understood better is scheme the that ensure reward topackage our total of May 2018 Global People Pulse results for the the for results Pulse People Global 2018 May on the the on variable variable propositionpay feedback with timely me provides Mymanager(s) mycareer regarding counsellor with my conversations meaningfulhave I firm’s firm’s business, business, seek to access the variable pay pots in each part of our business each year. The refreshed year. refreshed The each business our of part in each variable potspay the accessto seek performance. Over the last 12 months months 12 last performance. the Over one of our top priorities is an increased focus on our people and advancing their their advancingour andpeople on focus increased an our priorities topis of one Committee Committee counsellees Item seeks to provide more transparency over the offerings, how they and they out pay how offerings, the over transparency provide more to seeks – senior people leaders in leaders people senior is for all for is , were introduced introduced , were development our people people our the Performance Performance the UK show show UK components: components: RemCo : to be be to a marked improvement people amarked in our receiving improvement % % Favourable Our people Our 74% 74% rewarded competitively andrewarded fairly FY18 ► ► ► Ourvision for has been leading a review of the variable variable the of been areview leading has Management and Development Development and Management and performance and development career, on conversations and balanced more better having and counsellors Support feedback and coaching frequent leadership through Build skills colleagues their ofrecognition and development the directly to more contribute Empower topeople base pay increase and pay base increase Change from LEAD +13 FY17 business and business +5 is to: variable pay variable counsellees LEAD Process, . Pay will . 53 Important Transparency Report Transparency ‘well orwalking treadmills time, and individual for meetings rooms calm of creation the includes This office. the work fluidly out in and toindividuals enables that and technology workspaces EY@Work EY@Work refer high to and themselves for opportunities contractornew find EY to alumni for locationprovides asingle platform The also flexible gig models. working from the benefit to for reasons) family off time likely take to are particularly (who women allowwill it asdiverse teams, through innovationdrive help toalso platform The will workforce. our of evolution the and skills needed for andplan capacity to in response quickly more easily base and meet The UK. seeking people short connects working EY with for toflexible amore approachsupport also We GigNow Flexible working Building fulfilling careers people happen be. tohappen people where matter nocollaboration easy enables that in technology investment and flexible our culture into integrated working with key behaviours, around six centres Our approach work our teams. and our clients, our of needs (day informal both support people We our work. where and when in how, choice Flexible EY atworking GigNow – to EY - day) and(longday) formal member member firms’ is the evolution of our workplace that promotes a trust promotes a workplace that our of evolution the is - to updates and allowflexibility frequent that agile methodologies using built platform is technology quality talent. quality contractor UK needs needs means working more effectively through through greater effectively more working means - term) flexible working, subject to meeting meeting the toterm) working, flexible subject - now and in the future. With future. in the and now term contracting engagements or greater flexibility at opportunities greater flexibility or relevant engagements with term contracting You You out findcan more on the within EY UK We on - boarded GigNow Assurance. GigNow - based flexible environment providing based environment flexible efficient , 71 71 contractors EY is Our people Our - points’ that provide health statistics. provide health points’ that hoping to scale its its scale hoping to – GigNow an advanced technology platform platform that technology advancedan site 6. 5. 4. 3. 2. 1. are: sixkey behavioursOur https Trust your team Trust intelligently Work diversity Embrace effectively Communicate boundaries Set outputs on Focus ://www.gignow.com/ member member firms’ in FY18 talent talent EY 54 Important Results Section 4 Important Transparency Report Transparency Business performance R For further • • • • • • non 2018 • • • • • • • • • • • highlights financial 2018 year. this 7% grew by than more sector, largest UK’s the Services, Financial slightly fell by growth up by Assurance 1.5%. was Services Advisory Transaction grew and by Advisory 3.8% 7.3%, grew Tax7%. by rate of annual growth year compound five awith £2.41b to from £2.35b growing 2018, year ending June 30 financial in the 2.7% ofgrowth income fee UK EY achieved UK Business performance andcountry the acrossgrowth economic andlarge supporting small, both UK clients, 23,000 serve to UK helped EY world. the This investment around people and 260,000 countries This EY elations current regulations by publishing pay by our publishing ethnicity regulations current the aboveand over went partners we andUK incorporating gapits paypublish UK figures tofirst the EY was EY joined apprenticeships incl. 268 students, 1,247 and ICAEW) (ICAS in 2018 EY with qualified people 585 BME 25% and were women promoted 45% people 4,500 the Of BME 30% and year were female this recruits of 43% equity Partners new 71 2017 (versus dollars US in 11% and currency in localrevenues in increase 7.4% represents a This 2018. year ending June 30 financial its for US$34.8bn ofGlobally, revenues reported annual EY &Life and Pensions. in CapitalMarkets growth 15% than more and Services, Advisory Transaction in Advisory, by buoyed strong performances more 7%, grew than Services Financial by slightly fell growth Assurance £402m to 1.5% grew by Services Advisory Transaction £653m to grew by Advisory 3.8% £680m to grew Tax by 7.3% 2017 in compared £677,000 to £693,000, to by 2.4% increased Partner distributable profit per Average £900m than more is 2018 for contribution tax Total in 2018 £472m to in 2017 from £464m by 1.7% increased tax before Distributable profits 7% rate of growth annual Five year compound £2.41bn to from £2.35bn 2018 year June ending 30 financial in the 2.7% of growth income fee UK UK continues UK continues year EY UK grew its business with more than more with business UKits year EY grew , on 07870 635 635 07870 on, - • • • • • financial highlights information relating to our EY UK Business Performance, Performance, EY Business UK our to information relating Ethnicity Ethnicity regular earnings. on based 38.1%, Ethnicity Gender 38.1% Gender Gender to invest to invest in audit quality, technology and its regional pay gap among the UK partnership in March 2018: median 10.0% and mean mean and 10.0% median 2018: in March partnership UK pay the amonggap mean and 19.5% median 2018: in March Partners employees and allpay for figures gap and mean median 14.8% October 2017: employees in pay for figures gap pay gap among the UK partnership in March 2018: median 19.8% and mean mean 14.6% and 19.8% median 2018: in March partnership UK pay the amonggap mean and median 15.1% 2018: in March and Partners employees allpay for figures gap 196 or Loree Gourley in the Regulatory & Public Policy Team, on 07717 388 926. 388 07717 on Team, &Policy or Regulatory Public Gourley the Loree in 196 - 1.7% to £677m, audit grew by 4% to £458m. by to audit 4% grew £677m, to 1.7% 14,500 people acrosspeople 14,500 gap; – 41% female and 36% BME 36% and female 41% Results Building a Building please contact Vicky Conybeer, Vicky Conybeer, EY contact please business. 23 offices 23 Better - 1.7 in the UK, and a network of 150 150 ofUK, anetwork and in the % whilst Audit grew by 4%. grew Audit whilst % W orking orking 19.7% W ) orld 14.6% . Media 56 Important Transparency Report Transparency £ totalsrevenue For instrument. by EY LLP,defined the this UK work as audit performing localin torelation auditor The Financial informationinFY18 expressed for £million 5. 4. 3. 2. 1. includes: and 537/2014) No (EU) (Regulation Regulation Audit The Report, Statutory Transparency 13, Article with presented in accordanceis Revenue audit non and both from revenues other billings torelated to revenues and billed clients to expenses and includes revenues consolidated,represents combined, not Revenue Financial information Total revenues revenues Total clients Non auditTotal revenues non for related services directly and audit services Other PIE a is parent whose entities for services directly andrelated audits Statutory PIEs for services directly andrelated audits Statutory Service UK Audit Profit revenue Total entities Non 22m Local Audit Transparency Instrument requires disclosure of the turnover in the financial period of the local the ofperiod financial the turnover in the of requires disclosure Transparency Audit Instrument Local Revenues from non Revenues firm from permitted non Revenues entities other of statements financial consolidatedand annual of audit statutory from the Revenues PIE undertaking aparent is whose undertakings group of abelonging to entities for statements financial consolidatedand annual of audit statutory from the Revenues (PIEs) of statements financial consolidatedand annual of audit statutory from the Revenues - - audit services provided to other other toprovided services audit audit toprovided services audit (PY: £ (PY: 16m from audit ). - audit services to other other to services audit - PIEs EY GlobalEY (EYG) clients - - audit clients. clients. audit audit services to entities that are audited by the statutory auditor or the audit audit or auditor the statutory are by audited the that entities to services audit member firms. Revenue amounts disclosed in this report report include in this disclosed amounts member Revenue firms. entities Revenue 2,412 1,699 713 255 458 289 111 60 58 Results Percent FY18 100% 70% 30% 11% 19% 12% 2% 5% Revenue 2,348 1,677 Public Interest Entities Entities Interest Public 671 229 442 289 102 56 51 Percent 100% 71% 29% 10% 19% 13% FY17 2% 4% 57 Important Risks Section 5 Important Transparency Report Transparency or misstatement material against assurance absolute and notprovide reasonable firm, only can and the of objectives the designed to is system internal controlReporting. This Business andand Financial Related ControlsInternal Management, Guidance Risk on FRC’s 2014 the in out set framework the used have we effectiveness, its in reviewing risk and and management internal control of system Partners control internal of firm’s system the of effectiveness the of responsibility, the discharging UK. this EY In of business BoardThe robust. internal of our system over (i.e., 2017 from July us applicable tois which FRC, by codethe revised 2016 aof issue the Followingcontrol. internal of system its of effectiveness the of review the The ahigh of attributes fundamental are These scepticism. professional and independence objectivity, promote enhanced that initiatives in also delivery, but quality service support toneeded resources and other methodology, our tools audit maintaining and only in developing notheavily invest tocontinue therefore We auditors.independent as our success to fundamental providing high for reputation EY UK’s been important. more never has services our audit of In Managing risk Case Study: Policy today’s environment environment today’s business, with 48,256 hits to Policy Pursuit over over Pursuit Policyto hits 48,256 with business, the engagement in of level ahigh achieved We participation. encouraged were prizes, which quiz. There choice multiple ashort and points key the learn to activity interactive anpolicy, the link provided and toexplanation an Pursuit Policy adverts. plasmascreen and posters by were different supplemented andthree Partner) ManagingRisk Management from the publicity (including email an ofalot with months every two were released Wedges security. and (GDPR);legal; safety Regulation and General the Protection Datacrime; financial independence; favours;and gifts hospitality, a topic: different management risk represented wedges six different game hadThe clients. and firm our the protect to right decisions make the and topolicies our management risk understand help our better people designed to was training guidance. Itformal supplemented risk game management This interactive policies. risk our management reinforce engaging toway and afun proved be to Pursuit year. Policythe Institute of Chartered Accountants in England England in Wales,and Chartered Accountants of Institute Audit Firm (AFGC) Firm Code Audit Governance issued are responsible for implementing and maintaining the necessary control systems. In maintaining asound maintaining In systems. control and necessary implementing the are responsible maintaining for of EY UK EY of loss. (the Board)has (the — characterised by continuing globalisation and the rapid movement of capital of rapid movement the and globalisationby continuing characterised Pursuit control - quality quality audit for compliance with the 2016 code, so that it continues to be both effective and effective be both to it continues sothat code, 2016 the with compliance for game overall responsibility for risk management and internal control over the entire entire the over management internal risk controland responsibility for overall - quality professional audit services independently, is independently, ethically and objectively services quality audit professional – each one one each . for FY18), FY18), for by by the Financial Reporting FinancialCouncil and (FRC) Reporting the manage, Board we have continued continued have we . requires the firm to conduct, at least annually, annually, a least at conduct,to firm requires the periodically, and at least annually, conducts a review areview annually, conducts periodically, least atand rather rather than Risks eliminate, eliminate, to review review to the risk of failure to achieve achieve failure torisk of the the governance processes processes governance the developed developed with jointly — the the quality quality 59 Important Transparency Report Transparency profession for the and guidance regulatory restrictions the of regulators interpretations helping develop and our of position the of understanding Group, close Advisory developing FRC’s aTechnical member the of a also is Partner Ethics regulators and the with closely matters, engaging regulatory and ethical with understanding compliance and of enhancement ongoing in the heavily EY invested UK Independence ► ► ► ► ► the ofHighlights improvement. continuous deliver to processes governance control our internal to enhancements ongoing drive to continued has ROC year, the in every As level. and line functional service aat managed monitored and assessed, are risks identified, year This the activity. assurance and Board UK Our Risk Oversight Managing risk future performance, solvency and liquidity and performance, solvency future model, EY business the UK viability of principal the onrisks selected of impact the of assessment the Revisiting activities management risk andrisks owntheir on leaders and line functional service from selected Hearing presentations audits specific reporting and reference of of terms appropriate the considering andaudit as plan Agreeing internal the activities embedding consistent and Risk Function central aof establishment the Framework through Risk Management advancedamore ofdevelopment lead the practice to Advisory Services Financial apartner Appointing from our activities management risk line function and service of calibrate understand maturity and to workshops of aseries Facilitating in its assessment and management of risk. The ROC meets regularly with a standing agenda covering both risk risk both agenda covering astanding regularly risk. meets with management ROC The andof assessment in its ROC ROC is . now well established and has been for in place been has and established well now committee’s committee’s Committee (ROC) activity this year year include: this activity a a of commitment over money laundering, health and safety, anti mandatory During the reportingyear, committee committee computer has focused on evolving the rigour with which the firm’s principal principal firm’s the rigour which with the evolving on focused has Independent Non Independent - based training on courses independence, anti 50,000 two over years, with a primary mandate to support the the primary support toyears, a with mandate - Executives (INEs). Executives Risks 14,000 hours - bribery and data privacy . The firm’s Independence and firm’s The Independence staff staff undertook - — 60 Important Transparency Report Transparency be declined firm. by the therefore counterparty would andclient audit anwith interest of conflict unmanageable in an result could that engagements are There certain conflict. the causing is that activity the cease directed to is engagement team the be established, safeguards cannotrequired the If engagement. the from withdraw or level to acceptable an it toor threat reduce the eliminate to apply safeguards toinstructed are engagement identified, teams is interest of conflict or potential actual an When necessary. where checks, conflict secondary carry toout and engagement arise during the might that interest of conflicts topotential required remain toalert required. are always Client teams are engagement checks conflict where situations and services are There certain interest. of conflict acreate might that facts known or required, circumstances identify toany check, when aconflict include procedures, which acceptance engagement are required complete to teams engagement client be opened, can engagement code anew Before issues conflict consideringand acceptance Engagement BoardINEs. the and to,the access direct have on,or sit quality leaders. individuals line These service and leaders line service relevant involve will who Risk Management, of EY Head UK andPartner the UK EY Ethics the to be escalated will clients UK EY involving conflicts significant Any management. and identification conflicts quality of Guidebook and in ensuring globalpolicyand the the in developing involved actively EY remains world.UK around individuals the experienced of teams with excellence of are There EY centres Executive. 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(EYG) we apply EYG’s global policy on conflicts. The policy, formulated formulated policy, onThe Global Ltd. member Young &Ernst conflicts. (EYG)ofapply we on globalapolicyEYG’s Accountants ( Accountants IESBA) Code of Ethics, Ethics, of Code IESBA) the requirements FRC’s Ethical the requirements of the Risks Standard andStandard 61 Important Transparency Report Transparency nonof report instances all personal responsibility to a have they that staff andremind to partners all issued is communication year, aEach ► ► ► include: toupdated wasguidance whistleblowing UK the FY18, In anonymously. and report in confidence make awhistleblowing topeople for in place measures have EY we UK,At speak up. responsibility topeople’s our clarifies quality. 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Act Criminal the Finances and 2017 Laundering Regulations anticrime and financial our EY refreshed UK GDPRof Finally, aset training communications. other and alongwith issued was mandatorywebcast updated. A training been has Conduct Code of Protection Data addition,UK and(GDPR) Regulation in a General Protection Data the for were strengthened globalmember policies all firms. core apply These to(GDPP), which Policy Privacy Global and Data(BCRs) Binding Rules its Corporate on based structure compliance aprivacy EY established standards UK to acceptable way are managed in a conflicts that ensure EYGandmember Engaging other firms to with procedures and policies conflicts firm’s around guidance the Providing matters conflict significant onForming views situations conflict perceived or conflict to response firm’s the on Making decisions - compliant BCRs for processors was approved by the Information Commissioner in 2018. 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The new policy also reinforces the general principles our general ofprinciples the reinforces also policy new The regulations. and laws with compliance - compliant and unethical behaviour, without fear of reprisal. reprisal. of fear behaviour, without unethical and compliant - money laundering policy and procedures in response to the Money the to in laundering procedures response money and policy - compliance with laws, regulations and EY’s Code of Conduct Conduct of Code EY’s and regulations laws, with compliance Risks - related matters facing the firm firm through the facing matters related - 62 Important Transparency Report Transparency effectiveness. their we case the is this Where UK. the of outside principal by functions are our risks managed of some globally organisation,integrated a As designed. are operating as controls that and reasonable is evaluation their that control,under their risks significant most the ofrecord complete with basis annual an on formally reviewed Risk is Register The normal activities. its ofemerging asrisks part appropriate. where The Committee Oversight Independent the andBoard the to presentations year with the throughout principal are risks conducted specific on deep dives Periodic management risk activities. Register, UK consider Tosupport organisation.an The Our faces. it risks andthe monitor measure identify, to assess, management risk process arobust UK and purpose EY operates ambition. our ofdelivery the to critical is management risk Effective uncertainties. andrisks anumber of operate in presents we environment The Enterprise risks pay gap reporting and service quality procedures. gapquality procedures. pay service reporting and programme major gender milestones, delivery of included reviews athree over risks principal other all assuring of objective the annually, with least ‘critical’ atrisks all This programme line. covers service Advisory firm’s the within from programme audit professionals delivered by is internal management, under risks annual direct an our For those Board has overall accountability for our system of internal control and for agreeing the principal risks we face as face principal agreeing the we risks for andinternal control of our system for accountability overall hasBoard approach to Risk Management - year period. In FY18 the internal audit programme year audit programme internal the FY18 period. In periodically periodically seek - wide risk and assurance activities and hear and from hear activities assurance andrisk wide Board members members Board Activities at the at Activities Summarises the most significant risks to the firm,risk the to risks significantmost the Summarises to implemented to mitigate and monitor these risks ina risks these monitor and mitigateto implemented understand understand ownership and the controls and procedures and controls theand ownership Service Line and & Functional level to identify, assess, assess, identify,to level &Functional and Line Service activities over the most significantmostover the activities accountable CommitteeSub Board in their in their for oversight of the firm’srisk of the foroversight management and assuranceand management Service Line and Functions and Line Service Risk Oversight Committee Oversight Risk measure and monitor and measure single Risk RegisterRisk single the Principal Risks Principalthe of internal control internalof the design and operation of these controls to assure ourselves of ourselves assure to controls these and ofdesign operation the the firm’s systemfirm’s the Accountable for Accountable and approval of approval and UK Risk Team UK Risk activities, activities, The BoardThe risks risk risk the the risks ROC meets meets ROC o wners wners Risks service service ► ► ► delivery milestones: included reviews of major programme In the internal audit FY18 programme required to certify that the register register a is the that required certify to delivery delivery milestones Reviews of major programme Service procedures quality Gender pay gap reporting on a monthly basis to review the Risk the review tobasis monthly aon l ines ines and functions functions ROC also considers considers also ROC

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Internal Reporting Internal Disclosure External 63 Important Transparency Report Transparency below: set out as changes, some our andprincipal considered made risks fast the line with be adequate. In tocontinue risks monitor manage and toprocedures and controls that ensure todescriptions risk the refine to continually us helps also It risks occur. identify emerging they to as able risks, are but also right only the not monitoring are we ensure to only not us principal helps identifying ambition keep andour our risks. when in purpose mind This we important is It How ourprincipal risks impact ourambition UK. the within audit practice the of sustainability the ofliquidity. or included consideration This performance, model, solvency future firm’s business the threaten would that firm, the including those facing risks principal the of assessment arobust carried out we FY18, In actions. management of including appropriateness reports final the reviews report internal audit and each for reference of terms the confirms plan, internal audit annual the approves ROC The Enterprise risks Business conduct Business Majorprogramme failure Cyber risk Talent management Contagion Independence and innovation scope Service Macroeconomic quality/service Audit and technology competition Disruptive breach Data Regulatory riskFY18 description Principal risks impacting our Our purpose Our Our ambition Our ambition and public public policy and political risk political quality Positive and and stakeholderPositive strong Regulatory Regulatory Major programme Major programme Service Service / audit quality Best in audit Bestquality Business c Independence relationships Data Best brand Best Cyber Cyber r and public and public Changes to risk descriptionsriskChanges to breach onduct isk Building a Better a Better World Working Building f ailure p olicy - paced business environment we operate in, we have have in, we operate we environment business paced — Majorprogramme failure Cyber risk andtalent retain manage attract,Failure to — — pricing lower pressure andfor Market deterioration Brexit other Service Disruption breach Data change Regulatory riskFY17 description service issues service failure failure Risks Disruptive Disruptive resulting or from quality, compliance resulting earnings to attract the right thetalent earningsattract to Leading growth with competitive #1 or #2 in our chosen markets our in chosen or #2 #1 Service Service Macroeconomic Macroeconomic Most favoured favoured employerMost Talent Talent competition competition and technology Scope and Scope innovation Contagion management and and political 64 Important Transparency Report Transparency below. is shown risks these of explanation detailed more A face. we risks significant most the of summary comprehensive provides a list this believe We Enterprise risks Audit quality Audit Risk FY18 public policy public and Regulatory and therefore properly therefore notaddressed. and understood are not advocacypolicy public legal requirement standards,and professional as such areas of in respect opportunities and challenges that risk the lead toThis may apply. and conflicting becoming as well frequently or aschanging increasing maker policy other actionsrequirements and in regulatory result can landscape regulatory public current andThe policy ► ► ► to: leads quality audits Delivery poorof Description committee committee of loss market to due share of Loss sanctionsand fines Material regulatory intervention topractice due audit on Restriction and investor confidence investor and - descriptions or difficult to interpret interpret to difficult audit audit Risks ► ► ► ► quality failure, including: audit ofrisks address the to teams support andprocedures compliance quality and well and Comprehensive risks monitorand manage to Activities training training programmes. and processes methodologies, line service ofupdate continual in the used is team, Practice UK Professionaland the Committee Policy EY Public Global our INEs,regulators, This insight, firm. UK the impacting developments policy regulatory monitoring and responsible for team is Policy Public & EY Regulatory The UK ► ► ► ► ► ► delivery service over procedures review Quality portalonline through an accessed policies management risk methodology Globaland audit continuance and and acceptance Client engagement procedures assignment anddevelopment partner andrecruitment, Staff Sustainable Audit Quality programme Quality Audit Sustainable to availablehotline Ethics firm wider the within staff specialist to Access opinion audit prior to files selected over reviews Hot risk audit relevant where increased torespond to circumstances client Regular ofmonitoring fraud identified responding requirements onto training and Fraud awareness implemented learned identified lessons and deficiencies . Root combined with feedback from feedback with combined cause analysis cause - established established internal staff (RCA) of (RCA) 65 Important Transparency Report Transparency Enterprise risks Data breach Data Risk FY18 Cyber Cyber risk technology and competition Disruptive ► ► ► ► systems operational key of loss sustained information or and proprietary EY or dataclient compromised ofBreach ► ► ► ► ► objectives strategic our achieve our ability to impacts structures, fee models and revenue traditional market non or players Disruptive ► ► ► information and proprietary EY or dataclient compromised resulting in are breached controls security information and protection Data Description New business models business New capital investment of Availability technology of nature and Pace or operating businesses Technology disintermediating established Automation contractual and regulations laws, privacy Non andexpectations Client regulator disclosure Inadvertent Client andexpectations Client regulator individuals Malicious delivery service in solutions technology of Improper use Cyber attacks - compliance with data protection or protection datawith compliance : cybersecurity cybersecurity competition, competition, including competitors, innovation terms - of : audit or tax processes tax or audit descriptions : - service automation,service controls resulting in resulting controls models models emerging emerging Risks ► ► ► ► ► breach, including: data ofrisks address the legal requirements to and practice best industry standards, with consistent procedures quality management well and Comprehensive risks monitorand manage to Activities ► ► ► ► ► ► ► include: and activity functional and predominantly lines service embedded in are risk strategic managing this for Activities ► ► Periodic testing of controls and levels of and levels controls of testing Periodic Encryption ITAsset processes leaver and induction in procedures recruitment, Enhanced requirements understood read and have they that declaration annual an and loss data of event in dothe to including what protection, dataof importance the on and staff Regular training reminders for supporting guidance and policies governance Information remain vigilant for potential cyber cyber attackspotential for remain vigilant to staff andRegular training reminders to systems and monitor defend our hunt, actively cybersecurity who experts external internal and of Dedicated team processes and cybersecurity software in leading Ongoing investment programme defence cyber Globalactive (CIO) Officer line service across of creation working, including ofthe ways and offerings service of in respect trends market to react andconsider to teams line service of Ongoing development trends disruptive torespond to needed platforms skills and insights, provide the to alliances and technology in assets, Investment UK in our investment and strengthening Continued of loss data Newly controls in investment Continued awareness staff proposed network sanctions Chief Chief Information - digital established established internal cybersecurity cybersecurity for negligent negligent for s trategy 66 Important Transparency Report Transparency Enterprise risks Service quality Service Risk FY18 technology Information ► ► ► ► ► ► objectives: strategic on deliver effectively IT of execution and operations portfolio,service program portfolio, management, asset IT strategy, demand considering resources, of management Poor disciplinary matters. other quality and todue sanctions or / and work) regulated (for regulatory intervention in regulatory resulting andrequirements standards professional expectations, client quality, including againstdelivery service of levels maintain acceptable Failure to Description programmes, programmes, governance accountabilityProgramme ITreorganisation of Execution basis Ability operate antoongoing changes on programmes IT methodology for lifecycle Development programmes major among Interdependencies execution change Large platform system and - leading to an inability inability toan toleading descriptions information information and t echnology echnology Risks ► ► ► ► ► including: failure, service ofrisks the address toprocedures compliance quality and well and Comprehensive risks monitorand manage to Activities ► ► ► ► ► including: regard to Well ► ► ► ► Fraud training Fraud training toolsdelivery of enhancement anddelivery continued service over procedures review Quality independence) delivery (e.g. ofbreach service compliant poorquality or non ofmanaging risk the andin understanding teams client assist line Service continuance and and acceptance Client engagement procedures development and recruitment Staff continuity programmes continuity globalbusiness made to Enhancements place in activities resolution and monitoring with uptime 99%+ of targets performance applicationand Network input leadership cross with set and budget prioritisation Annual and providers business IT between partnering Close relationships GlobalIT required standards the work to their conduct need to staff information Easy partners) rules (quarterly for independence on by staff certification Annual failure client unexpected ofrisk the manage to circumstances client ofOngoing monitoring Controls - established established - - to IT governance and governance IT functional and service line line service and functional - access portals containing the the containing portals access to monitor monitor margin to governance governance - specific policies designed designed to policies specific policies and procedures with procedures and policies programmes - structure in place structure established established internal service delivery delivery service - 67 Important Transparency Report Transparency Enterprise risks innovation and scope Service Risk FY18 Contagion management Talent member member either within change failure spreading contagionreputational) (or Financial ► ► ► ► ► ► training anddevelopment management, retention, performance planning, including talent recruitment, Failure to ► ► ► ► ► ► optimisationportfolio market trends, strategy anddemand or and client expansion, scope modification, or enhancement including service innovation, and scope prohibited service or Unacceptable Description Alumni Alumni relations high of Retention and needs line market to required meet service Infrastructure pipeline and growth offerings for new skills development staff Senior skills necessary with talent of Recruitment strategy ofsupport people in of Engagement level competencies quality, and cost,development Service standardsmethodology and Service approvalprocesses Service solutions alignment of Sector/geographic services new ofdevelopment and Innovation Emerging client , compliance firms. manage our talent pool adequately, adequately, pooltalent manage our to EY asUK to or business models business or - descriptions needs needs breach or breach regulatory - EY UK or UK EY performing performing talent : a result of service service of aresult : from from other other EY Risks ► ► ► ► risks monitorand manage to Activities firms and their regulatory their environments. and firms member EY in other activities of implications Directorate Practice firm’s legal and the between engagement andOngoing monitoring staff. for opportunities development learning deliver enhanced and to being now used is platform same The process. quarterly delivered improved an performance in turn has which system feedback simplified In ► ► ► ► ► ► include: These staff. of management andretention recruitment, the manage to level line service and afirm atin operation and are procedures Processes FY18 investment has been a into been made has investment FY18 Committees established to review new new review to established Committees Governance line Functional and Service community CIO line service the through knowledge shared with tools,management innovationand networks innovation owntheir developed have lines Service line service one than more for and approved in SORTpublished This arbitration anprocess alongwith Policy Global Services of Scopethe in out set services, new for process Globalapproval localand core globalallabout and guidance information (SORT),Tool reference aglobaltool, through defined managed is and scope Service of action plans action of formulation with employee survey Annual groups competency and grade, location reward by total benchmarking Annual of processes management performance Simplified annual diversity Multi andstrategy performance covering Regular communications leadership programmes postand induction Strengthened working of waysand services models, business ensures that the same service is not is service same the that ensures - year year talent and inclusiveness and at staff and partner and partner level staff at services programmes teams to understand understand the to teams Service Offering Offering Service which provides provides which Professional initiatives , including - induction induction . 68 Important Transparency Report Transparency Enterprise risks Business Business Risk FY18 Independence conduct audits of loss and/or damage, regulatory sanction, reputational penalties, financial in severe resulting independence maintain to Inability regulatory or penalties, financial impact, reputational negative toleading conduct,of our code comply with Failure to Description - descriptions sanctions Risks ► ► ► ► ► include: procedures Well established risks monitorand manage to Activities ► ► ► ► ► ► ► ► ► ► ► ► include: breach. These independence anof risk the manage to level line service and afirm atin operation and are procedures Processes Regular reminders firm service and Regular reminders aat compliance enforce to relationships business of evaluation aswell as continuance and acceptance engagement and client for processes and Mandatorysystems breaches potential consider to partners senior made up of Committee Conduct of Code annually tounderstanding their ofrequired certify are staff which Conduct Formalof Code requirements and expectations reinforce programmes postand induction Strengthened personal independence commitments personal independence Firm of Global Ring and procedures policies Global conflicts tool Directorship evaluation tool evaluation relationships Business policy relationships Business services Engagement checks Audit declaration independence Annual Independence policy Independence requirements its and Conduct Code of the of level line non - - fencing fencing teams of wide wide client client - tools to manage the permissibility permissibility the manage to tools audit audit tool to assist in managing in assist to tool and services on services acceptance of non of acceptance at staff and partner to and partner level staff at training engagement engagement audit audit acceptance acceptance clients - audit audit - induction induction 69 Important Transparency Report Transparency FY19. in programme The commence will assurance. comprehensive tools The well equipped and respond. Robust, tobetter focused be more to require present us changes emerging The these risks to of growth the or change technology alliances, on greater focus resourcing, of waysbe changing delivery new it models, whether unfamiliar andterritory, new into us taking is services our of evolution the and direction Our strategic change. arapid of pace increasingly complex with in is operate we environment regulatory and financial competitive, The Strengthening Enterprise risks and Macroeconomic failure Major Risk FY18 publicly publicly - Board has approved a programme to invest in additional resources additionalresources in aprogramme invest approved to hasBoard resourced risk and internal audit teams will be a cornerstone of this response. this of be acornerstone will audit resourced risk teams internal and political risk political – to evolve the central Risk Team and enhance our Internal Audit capability to deliver deliver broader, to capabilitymore Audit Internal our Team enhance and Risk central the evolve to programme programme demonstrate how we are managing risk and safeguarding are managing safeguarding andrisk we how demonstrate asset our - based ► ► ► ► ► objectives strategic our achieve our ability to impacting behaviours, nationalistic and shifts financial and including economicgeopolitical, uncertainties, politicaland Macroeconomic disruptions operational programmes significant toleading implement internal effectively Failure to Description risk management activities employment under unemployment or Systemic Market disintegration prices commodity and changes rate interest inflation/deflation, growth/decline, GDP Emerging events changes to response Timely and identification consulting. Public perception and regulatory scrutiny is also creating new demands for demands us new creating also is regulatory perception andscrutiny Public consulting. : - descriptions - EY UK, EY Risks impacts on the design and delivery design ofdelivery the and on impacts for and adjust consider to uncertainties macro of impact the monitor teams line management Service before issues system any resolve to gap time and increased an solution, risk around the providing mitigation some of ahead remains implementation delivery. risk and to controls programme key ofgovernance, design of reviews delivered of anumber has function the regularly to reports Co Steer The inception. running since and been established has Steering Committee aUK for which implementation globalsystem transformation with in FY18 continued have We risks monitorand manage to Activities change. significant to response asa key issues on enabling decisions team, quick response rapid a operates as functions, support partners key senior and group, made up of sub A clients. and staff Brexit onofarrangements impact the consider to amandate with established A pricing and implications. market talent, and availabilityof services, – Brexit Steering Committee is well well is Brexit Steering Committee people, enhanced processes and supporting supporting and processes people, enhanced our clients and our wider wider and stakeholders. our our clients programme, programme, including major Board, - economic and politicaland economic - and our Internal Audit Audit Internal and our set of the steering steering the of set UK go UK The The - live date. live a business abusiness US the EY UK, UK , its its 70 Important Transparency Report Transparency Compliance statement to enhance our processes enhance to and internal reviews other practice review, the of findings the use we and our business of aspects all improve to seek refinement. continually or improvement We potential ofreadily identify any toareas us allowand operate effectively are, and in general, robust systems and our internal quality controls that satisfied in out carried practice review the andon based 2015, (Transparency) Instrument Auditors LocalThe to Schedule the and Regulation Audit EU the (d) of 13(2) Article with accordanceIn Statement on the effectiveness of the functioning of the internal quality control system ► ► ► ► ► ► involved: this summary, In mechanisms. monitoring andrisks, controlsprincipal Risk for Register the update to undertaken process the of including control,consideration internal of system the of effectiveness the of review performed has a it that Firm confirms Board the Audit Code, the Governance with in compliance andprocedures annual its of part As Statement on the effectiveness of the firm’s systemof internal control effectively. effectively. that satisfied is Board the out, carried reviews of basis risks. On principal the manage mitigate and to controls strengthen will believe we that identified actions have but In ► ► the course of this review of effectiveness of internal control, we have not identified any significant weaknesses weaknesses identified significant not any have we internal control, of effectiveness of review this of course the approve the updated Risk updated Register the approve and challenge tomeeting Committee Risk Oversight the with activities, and controlrisks on functions and across discussions of output utilising the completeness Risk for Register the Reviewing under principal the controlrisks their for Owners from Risk written certifications Obtaining environment control the torelation in external auditors, our including ofcomments conclusions the Reviewing regulatory reviews findings andfrom reports Considering the Audit Internal work ofthe Reviewing of output Considering the of members senior with Holding discussions risks the of survey aConducting . the firm’s firm’s over monitoring the the firm firm faces the the firm’s management management firm’s the with a broader partners ofabroader population with the firm’s systems systems firm’s the compliance activities compliance Risks to whom principal risks are risks assigned principal whom to of internal control are are operating internal ofcontrol FY18, FY18, external external we confirm that we are are we that confirm we the firm’s services services firm’s the regulatory reviews regulatory reviews lines lines 71 Important Governance Section 6 Important Transparency Report Transparency governance EY UK key performance indicators (KPIs) on firm governance. Below we set out how we have achieved these KPIs in the current year. current in the KPIsthese achieved have we how out set we Below governance. Boardthe FY17 In them. and against report KPIs firms (AFGC)governance determine Firm Code Audit Governance requires that 2016 The firm firm Values meetings. period, Boardthe for rolling 12 a over 80%, oftarget attendance partnership. be aminimum the should There of ( ethnic per annum. Leadership KPI Conduct. Globalof the Code with compliance UK’s the on reports a least at On findings. the of aspects cultural the upon actingBoard Female representation Female should hold an hold should Partners — BAME) As part of the the part ofAs 21% The gender The gender and — biannual biannual the should Boardthe diversity of the Board should reflect that reflect should Board the of diversity 71% Board 30% annual People Survey, with the the with Survey, People annual Target 80% basis, the Board should receive receive should Boardthe basis, Attendance firm’s firm’s of EY UK of black, culture assessment, culture Actual BAME BAME representation 90% meet at least four times times four least meet at Partners (the Board) considered, proposed following Board)considered, and(the 1% Asian and minority minority and Asian 10% Engagement Engagement increase in People score Board - 10% month month the the further are set further details Individual Collectively three and aBAME) is one Of electronic made via also were decisions required, various and were There additional during year. the four times met BoardThe KPI of achievement FY18 with the Globalof the Code with compliance UK’s the reporting received onBoard The report. this throughout discussed are survey the of findings the respond toyear to the taken during year. actions The current in the conducted being survey abbreviated prior year, an the with in conducted was survey globalpeople comprehensive A the 10 10 the Governance Board attendance rates for for rates attendance fora. , the Board had an attendance rate 90 rate of Boardattendance an, had the members, members, seven ad out in in this out discussion, agreed agreed discussion, Conduct. hoc were were female. meetings as and when when and asmeetings Board section. section. were were members members male (of which which (of male KPIs on firm firm on KPIs and %. %. 73 Important Transparency Report Transparency governance EY UK key performance indicators (KPIs) on firm on sustainable audit quality. audit sustainable on focus the oversee toannum per six times least at meet Operations remain from independent INEs the that itself satisfy must Boardbasis,the annual an On annum. (IOC) Committee Oversight INE the andINEs, UK three least at Independent KPI dialogue is occurring. dialogue is programme investor ofaformal that basis, annual an Dialogue AFGC, otherwise. explains or the understandable, with andand balanced complies is fair, it that itself satisfy Transparency toReport Reporting internal controls. firm’s in the weaknesses or failings material no goalofthe annum, with per six times least at should meet (ROC) Committee risk Risk Oversight the management, to respect With Target AQB AQB meetings 6 — — The Board should satisfy itself, on at least least atonitself, satisfy should BoardThe — The Board should review annual review the should BoardThe Non The Audit Quality Board (AQB) should should (AQB) BoardQuality Audit The Actual 10 should meet at least four times per per four times least at meet should - Executives Executives (INEs) EY Target ROC meetings — 6 UK. There be should There Actual 9 firm’s internal controls are set out in Section 5 5 Risks. Section in out are set internal controls firm’s the on commentary with ROC along undertaken by the year. activities The during the times ten met ROC The in audit/Quality 2 Trust Section in out set quality is audit sustainable on focus the in overseeing role year. AQB’s The during the times ten met AQB The The were independent. they that is Board satisfied year and during the the in out set As KPI of achievement FY18 of investor dialogue is taking taking place. is dialogue investor of formal engagement, programme a in audit/Stakeholder 2 Trust Section in out set as that, satisfied is BoardThe AFGC. the complies with understandable, and and balanced fair, it is that itself satisfied and October 16 onReport Transparency the reviewed BoardThe IOC met four times during year. during the four times met IOC Governance this section, there there section, this were three INEs UK three were – SAQ. 74 Important Transparency Report Transparency Company Secretary. Board, the of respect In duties. their discharge to them aquality appropriate to ofaform andand in meetings atimely committee manner before information in with as supporting number committees, of The greater detail. network arrangements, EY in the aswell asand governance, ownership our legal structure, Appendix describes 2 With EY from July 2018, 1 At statements. financial statutory found in its be EY can UK related to entities of Details below. is given governance our UK plans.and detail on Additional proposed decisions to informed challenge of level provides another regular review process the local, making is decision Although andtechniques different approaches other alongwith fora,which EY international anumber ofparticipates in management actions its regular of toreview subject is team &Limited Global Ernst and Limited. by Young Young EY leadership &EMEIAErnst The UK established agreements governance by the toEY and Europe oversight to subject is management andteam Board model, the Under this standards. professional and ethical ICAEW’s the things, to,other among subject are all they that This means ICAEW.the members of affiliated or became auditors) are accountants or based who are UK who Europe those just EY (i.e.,of partners not all authorisation, ofcondition anormal As UK. EY of control voting has and (ICAEW), England in Wales and Chartered Accountants of Institute by the authorised is Europe), (EY which Europe LLPYoung &Globalincludes Ernst Limited. Young &Ernst It ofmember firms globalorganisationof the EY is Legal structure firm’s governance and management bodies that are relevant to the purpose of the the of purpose the to are relevant bodies that management and firm’s governance 20 offices20 across UK the locations EYhad UK in: 719 explained explained on. further and its performance across all areas of business activity. EY UK’s EY activity. business of areas all across andperformance its partners as well as in Jersey Guernsey and Jersey asin well as for running for EY running ROC, IOC and AQB, AQB, and ROC, IOC All members of the governance structure are provided structure governance the of All members , compared to 698 in the prior in the operated year, and 698 to compared , Southampton Reading Nottingham Newcastle Manchester Luton Churchill & Place) LondonPlace London (More Liverpool Leeds Inverness Hull Glasgow Exeter Edinburgh Cambridge Bristol Birmingham Belfast Aberdeen Governance UK sustainably. sustainably. UK enables it to share best practice with peers, peers, with practice best share to it enables this function is performed performed is by the function this - Upon - Tyne . AFGC include AFGCinclude the Boardthe enable enable and 75 a Important Transparency Report Transparency ► ► ► ► ► achieved: AFGC is the of purpose the help that ensure to issues following the considers Boardthe ofstanding The agenda responsibilities. and experience roles period other their for andappropriate their ato members Board serve fora.through electronic business during and,in addition,routinely conducts FY18 occasions four on met BoardThe Europe by Executive. the time Operating tofrom time it to delegated matters other and statements financial members, members, the new approving liaising with of admission implementing awhole, the firm asthe standing of reputational and commercial, financial for the responsible is Board,which the leads CMPThe ► ► ► includes: CMP the role ofVarley. The Steve is UK EY of CMPThe appropriate andBoard the partners with consulted having Operating Executive, Europe the of consent the with CMP, the remove to right the has Europe, EY of who Partner ManagingEurope the appointed by is management. operationalgeneral CMP andThe firm’s the deal with toauthority full has who (CMP), The The Board EY UK of The board of EY UK Risk Oversight A A R A Firm’s authorities governmental and regulators with interface asthe Acting EY UK partners employees of and for leadership the Providing EY Representing UK Board Committee isks isks udit udit independence udit lignment and regulatory regulatory and matters more more matters commercial, financial and reputational reputational and financial commercial, is appointed by the Europe Operating Executive of EY Europe and the UK Country Managing Partner UK Partner Managing Country EY and Europe the of Operating appointed Europe by Executive the of the firm’s firm’s the of generally matters (the values Audit Quality Board) Board interests Code of Conduct Committee The Board of EY UK Governance Committee UK Audit Oversight Committee Non Conflicts Panel Independent - Executive Pension Sub Committee (INE) (INE) - 76 Important Transparency Report Transparency December 31 We committees audit reporting boardsandexperience and tocapabilities of technical strong has She reporting issues. financial Sarbanes (GAAP),principles US accounting accepted generally including experience IFRS,US technical strong has Christabel transactions. for corporate work accountant reporting and (IFRS)ofreporting financial under standards groups international listed multinational auditing of areas in the experience Christabel brings extensive 2018. September 1 on Board the joined also Cowling has Christabel Audit. UK WAM of Head and Assurance (WAM) Management Global co roles include Her previous in 2016. in Scotland practice Services Financial the of appointed Head wasand 2009, apartner became in EY joined in 1988, She sector. services financial the within Dawe Sue Leader Chair, Services GlobalTreasury and Vice year, asManagedlast beginning of Alisdair Changesto the Board since the year meetings Biographical Compositionthe of Board The board of EY UK Lisa Cameron Lisa Hywel Baggs Ian Omar Ali Varley (Chair) Steve members Board Lynn Lynn Rattigan Robert Debbie O’Hanlon McGrathEamonn Alisdair are pleased to note that, with the appointment of Sue and Christabel, and with Eamonn McGrath due to retire retire on to due McGrath Eamonnand with and Christabel, Sue of appointment the with that, note are topleased Ball Mann Overend Mann in FY18 are are in FY18 has replaced replaced has . details of each of the Board members Appendix included atmembers Board the are of each details of 2018, 2018, stepped stepped the gender balance of the Board will be be 50/50. will Boardthe gender of balance the given at the end end the atgiven down from the Board, after eight years as a member, following his appointment, at the the atappointment, member, his following asa eight years Board,after from the down Alisdair UK Chief Operating Operating Officer Chief UK Principle Compliance Audit UK andDirector Practice Country UK Professional Managing Policy Public & Regulatory of Head UK Business Services Financial the for Operating Officer Chief Management Partner, Risk Managingand General Counsel Audit of Head and& UK UK Ireland Partner, Assurance, Managing Services Financial UK Partner, Assurance, Managing Managing EY LLPChairman UK Title , joining the Board, effective 1 September 2018. Sue brings 25 years of experience experience years of brings 25 Sue 2018. 1 September , Board, effective the joining Partner, National Markets Partner, National Partner, of this section. this of end UK Financial Services Financial UK - Oxley requirements, on advising and requirements, governance corporate Oxley Governance 1. 1. Records of attendance at the Board the at attendance of Records Financial Services Office (FSO). Office Services Financial 8 years years 8 years 8 years 7 years 3 years 3 years 7 year nearest to appointmentof Length 3 years 3 years 8 years 2 years 3 - leader of Wealth and Asset Asset and Wealth of leader 77 Important Debbie Debbie O’Hanlon Transparency Report Transparency The board of EY Omar Omar Ali Ian Baggs Ian Lynn Lynn Rattigan UK Eamonn McGrathEamonn Steve Varley Steve Alisdair Governance Hywel Ball Hywel Mann Robert Overend Robert Lisa Cameron 78 Important Transparency Report Transparency appointment. INE may the terminate firm the or INE Chair, the the directly to disagreement relates the of nature or,the if disagreement persists the and is made indication such no that event the desired. In Chair by is the intercession afurther whether indicate must party in other disagreement and the INE the resolved been has disagreement the not or whether Chair the to indicate disagreement shall party in other the and INE the time, proposed the of conclusion the At disagreement. the resolving disagreement criteria the any and parties for preferred resolving the of positions respective the information, for further aneed as the its EY UK ofBoard the members and INEof an disagreement between fundamental a is there that event the In Fundamental appointment. entity an acquires client example an audit being holds, an where INE the roles that dispute may immediately appointment be terminated under the the be resolved, cannot disagreement that fundamental aof event the In notice. written EY giving six months’ or UK terminated INE may by the appointment be either The Service. Appointment and in aLetter of out are set INEs the of responsibilities years. andRights fiscal three additionalterm of one amaximum of for serve to be invited may Board, INE an the of approvalthe years. With fiscal three term initial of for Board an are appointed by the INEs Appointment and termination INEs of in IOC the Chair of report from the the see INEs, the work of EY UK of structure governance the within INEs UK the INEs ofend the at are given meetings Appendix at are included INEs the details of Biographical established IOC being the to prior 2016, June 1 since INE an as post in beenhas Thorburn David * follows as is IOC the membership The of ► ► ► follows: IOC,are as through the are exercised which duties, of limited to)oversight being not to collectively role is IOC’sThe The Independent Non The Independent Non IOC membersIOC Sir Peter WestmacottPeter Sir Rosemary Martin David governance structures, the INE shall set out the nature and status of the disagreement, Chair of disagreement, the in writing, tothe of and nature status the out set shall INE the structures, governance Reducing Reducing Helping Promoting Board have visibility of the entirety of the business of EY UK. The appointment of three UK INEs and the ofposition the and INEs UK three of The UK. EY appointment of business the of entirety the of visibility have Thorburn* Thorburn* r esolution esolution (copied to the members, including the other party in disagreement), together with any other details such such details other anyparty with in disagreement), members, together other including the the to (copied the firm secure its reputation more broadly,more nonreputation its its including in secure firm the the risk of firm firm risk failure of the . The audit quality audit disagreements (Chair provisions. In addition, immediate termination may be required where a conflict occurs with other other with occurs may aconflict be required where addition,immediate termination In provisions. Chair shall respond to the INE in writing by setting out any proposed timescale and method for method and timescale proposed any writing outby setting in INE the torespond Chair shall ) - Executive Independent Non Independent Non Independent Non Independent Title enhance EY UK’s enhance this section. section. this its its policies and processes for meeting the principal AFGC objectives. The INEs’ The AFGCprincipal for the meeting objectives. processes and policies : Oversight - - - Executive Executive IOC the Chairman of Executive, Attendance of the UK INEs at the the at UK INEs the of Attendance - performance in meeting the purpose of the AFGC, focusing on (but (but on AFGC, focusing the of purpose meeting the performance in Executive . In Committee (IOC) meet meet the event that the disagreement has not been been both resolved, not has disagreement the that event the 1. 1. Details of the attendance of the the of attendance the of Details the requirements AFGC.the the information on For requirements of the Section 1. Section Governance C - audit business business audit ommittee Board in which the the which in 1 year year 1 year 1 year 1 year nearest to appointmentof Length meetings ensures that the the that ensures meetings INEs INE also holds an holds alsoINE at the the at Board and/or 79 Important Transparency Report Transparency volume earlier this in IOC the Chair of from the report the see INEs, the work of For the INEs’ activities issues. the to advice for additional£25,000 an receives Peter Sir ► ► ► roles are: UK their of in respect INEs the of salaries The non FTSE benchmarked 100 with been has per annum, which number service agreed days’anof on income, based annual afixed are paid EY INEs UK INE remuneration issues current and activities compliance UK’s EY regular on updates INEs agenda,the quarterly offering IOC the ofintegral an part is Partner Ethics and Additionally, Independence EY UK’s roles. their of in respect insurance directors’ officers’ and of apolicy ofbenefit the have The INEs advice). professional this obtaining of appropriate means the approve andestablish Chair to the with consultationto (subject expense EY UK’s at advisers from professional advice to access and duties their in performing support administrative full with INEs EY provides duties. their UK discharge to necessary reasonably is partners, asrelevant to including accessaffairs, UK’s EY about information relevant all request are toentitled INEs EY annually thereafter. and appointment on requirements both EY the with in accordanceindependence their confirm INEs addition,the Inclients. audit new of acceptance on appointments other their of review by INEs a the of independence the of itself firm. satisfies BoardEY The an of client audit anof stockholder or director substantial officer, an as hold appointment an permitted alsoto are not ordinary in the consumer be ato considered EY is where circumstances in except stockholder or director substantial officer, an is INE the which for entities client any or audit services) INE the covering contract the than (other INE the relationship with indirect direct business material anyor having AFGC Standard, Ethical FRC’s the of from consideration formulated was policy, firm’s which the with in accordance clients audit firm its and to from the independence their are required confirm INEs The issues. any requirements and firm independence ongoing the briefed andPartner on Independence by the are interviewed INEs appointment, to Prior Independence retired: have INEs following year end, the the Since The Independent Non Rosemary Rosemary Martin Name Sir Sir Rosemary David support and the UK Corporate Governance Code. This policy requires, among other things, that EY is prohibited is prohibited EY from that things, policy Code. requires, Governance other This amongCorporate UK the and Peter Westmacott: £75,000 £75,000 Westmacott:Peter David Thorburn also receives an additional sum for his INE role on the Global Governance Council. Governance Global the role on his INE for sum additionalan receives DavidThorburn also Thorburn: £90,000 (as IOC Chair) IOC (as Thorburn: £90,000 Martin: £75,000 Martin: of INEs 3 Retired August 2018 August - executive director director roles. executive - Executive Committee post year year end. post resigned EY appointment her therefore she and Vodafone role at Rosemary’s with conflict aThis created Vodafone. of affiliate amaterial auditor been to appointed EY has Comment Board on international geo international on Governance course of business. business. of course . - political and governmental governmental andpolitical In this respect the INEs the respect this In 80 Important Transparency Report Transparency Andrew this reflecting appointment period their expertise, ofand with roles their based members on AQB other Chair. select Chair will AQB AQB The as actwill Audit of EY Head The UK 2, Section refer to please AQB, the role of For the Audit John responsibilities and roles other andappropriate experience their aperiod for toserve will Board, members by and the ROC are appointed Section refer to please ROC, the role of For the Risk Other governance & management bodies John Cole John Bowles Chris Cameron Lisa(Chair) membersROC Robert Robert McIver Peter Michael Headley John Javier Brown Colin Belton Justine Baggs Ian Forsyth Bob (Chair) Ball Hywel members AQB McGrathEamonn Cowling Christabel Cole retired from the firm on 1 July 2018 1 July firm Cole onthe retired from OversightCommittee (ROC) Quality Board (AQB) Faiz Walton Overend - John Albert John joined joined . the AQB the Partner EY UK Partner Audit and the of Operating Officer Chief EY UK Services in FinancialPartner Management Partner, Risk Managingand General Counsel Title EY Director Practice ProfessionalEY Country UK Leader Practice LondonAudit Leader Quality Audit Services Financial Insurance Services in FinancialPartner Banking Markets & Capital Markets Leader NationalAudit for Enablement Leader and Implementation EY UK&I Services EY Financial UK Partner, Assurance, Managing Leader Quality EY Audit UK Head UK UK Ireland andEY & Assurance Partner Managing Title UK on 6 6 on Head of Regulatory & Public Policy and Audit Audit and PolicyRegulatory Public & of Head Partner Risk Audit Audit of Audit Audit of September September Compliance Compliance . 5, 5, Risks. 2018, with with 2018, Trust in Trust Principal - Partner Partner EY a UK Peter McIver stepping down on the same the on down stepping McIver Peter udit. . Assurance Business Business Assurance Governance and EY 2 years years 2 years 2 2 year 1 years 2 yearnearest to appointmentof Length 3 years years 3 year 1 years 3 years 3 years 3 2 years 3 years 3 years 3 years 3 year nearest to appointmentof Length years years years date. 81 Important Transparency Report Transparency ► ► ► members of pool ato access Regional Conflicts by the chaired CPis The been recently only has Third it Party.As Informed and Reasonable Objective, an of lens the through provide informed views and acceptance engagement to further addchallenge leaders senior who of CPconsists The profile high matters. aswell asinterest of conflicts addressing for firm’s process current complement our and enhance to actsand 2018 in June created CPwasThe Conflicts years. further be extended three by acan appointment and years, their three ofaperiod for serve Board.by Appointees the approved are then appointments whose experience nonholding and relevant (with arepresentative line proposes service Each meeting. each attends and Committee this to Secretary is Moses, Partner, Maurice ayear. Ethics The times four least atThey Conduct. meet EYCode the Globalof adhere to partners that ensure helping EY partners allin to UK of behalf on CCCThe acts Code Other governance & management bodies Sarah Williams ( Williams Sarah CCCmembers Tim Tim West James Liver John George Hardy Hales Dave Colin Bamford Kate Rute T T BoardThe he UK financial services leadership team leadership services financial UK he he Aparicio Dempster of Conduct Committee (CCC) UK&I Regional Leadership Team (UK members Leadership Team members UK&I (UK Regional only Meader Panel (CP) Chair) drawn from UK LLP leadership, LLPleadership, drawn including from UK from formed, it has so far far so has it formed, Leader Leader Tax EY Tax EY Advisory FSO Advisory FSOTax UK&I EY Assurance UK&I EY TAS PAS FSOTAS Assurance Service line - Maurice Maurice UK&I FSO ) UK&I Moses, met met on only only on who is alsois who Governance one occasion in the year to 30 June 2018. June 30 year toin the one occasion : EY UK’s Ethics Partner. The CPhas Partner. The Ethics UK’s EY 3 years 3 year 1 years 3 years 3 nearest year Length of appointment to 1 year 1 year 1 years 3 years 3 years 3 - management management positions) 82 Important Transparency Report Transparency shortly. With responsibilities. and roles other their experience their period for andappropriate ato serve experience. Members will relevant on based being selected others Board,the with the members members of three be will Board. least are appointed by members At the PSC UK. EY for implications reputational or The Pension Sub and roles other their andappropriate experience their aperiod for toserve will Board, members by and the UKAC are appointed ► ► ► ► of respect In Boardthe to statements financial the of approvalreporting the recommends and judgements financial significant firm, the reviews of statements financial the of integrity the external auditor.monitors the UKAC The of engagement of remuneration terms and approving external auditor the for the and of appointment the in to relation making for recommendations responsible alsoregulatory andrequirements. is UK It professional relevant consideration taking into process, audit The UK Other governance & management bodies Lloyd Brown Douglas membersUKAC Lesley Davie (Interim (Interim Secretary) Lesley Davie Julianna McGrathEamonn Alisdair Taylor Dewar DawesAngela (Chair) Lynn Rattigan PSCmembers Wilson Stuart VoogdChris Reviewed and recommended the approval of the financial statements to the Board the to statements financial the of approvalrecommended andthe Reviewed reported external auditor asby the results audit the Reviewed external by auditors the identified risks plan, the audit considering Approved the external auditor the of fees and appointment Approved the PSC acts as a consultative body when there are strategic pension decisions that may have significant financial financial significant have may that decisions pension are strategic there when body consultative asa acts PSC reviews UKAC Audit Committee (UKAC) Alisdair Mann Nisbet Oladipo FY18 the UKAC met met UKAC the FY18 stepping down from the Board, a replacement member of the Board will be appointed to the PSCthe be appointed will Boardto the member Board,areplacement ofthe stepping from down - responsibilities committee (PSC) (Chair) (Secretary) and monitors the external auditor’s independence and objectivity and the effectiveness of the the of effectiveness the and objectivity external auditor’s and the independence monitors and . . twice and: twice Governance 83 Important Transparency Report Transparency Meetings attendance Eamonn McGrath Lynn Rattigan Robert Alisdair Cameron Lisa Hywel Varley Steve Number of meetings attended Number of meetingsin FY18 John John Liver Bamford Kate Fiona Sheridan Rute Colin GeorgeHardy Alison Christian Williams Sarah HalesDave Iain McIver Peter Colin Brown John Headley Javier Justine Belton Bob Forsyth Michael Chris Bowles John Cole ChristabelCowling Westmacott Sir Peter Rosemary Martin David Thorburn O’Hanlon Debbie Ian Omar Ali Baggs Wilkie Aparicio Dempster Ball Faiz Overend - Mann John John Albert Board 4* 4 4 4 4 3 3 3 4 4 3 4 4 4 IOC 4** 4 4 4 ROC 10 10 10 9 6 8 Governance AQB 10 10 10 10 10 9 9 9 9 7 8 CCC 6 2 2 3 4 4 4 1 6 5 3 UKAC 2 PSC 6 6 5 6 CP 1 1 1 1 1 84 Important Transparency Transparency Report. double ** electronic via decisions various * Quarterly Transparency Report Transparency Meetings attendance AngelaDawes Chris Lloyd Brown Stuart Wilson Douglas Tim West James Number of meetings attended Number of meetingsin FY18 Maurice Moses Davie Leslie Julianna Taylor Dewar Due Due Voogd - to scheduling requirements, the Q1 FY19 IOC meeting forward tobrought meeting wasIOC FY19 Q1 requirements, the scheduling to Meader counting this meeting, it is not recorded in this Transparency Report, but will be recorded in the FY19 FY19 the be recorded Report, will but in Transparency this recorded notin meeting, is it counting this Nisbet Oladipo meetings are recorded here, but there recorded are additionalhere, there are meetings but fora. Board 4* IOC 4** ROC 9 ad hocad Governance AQB 10 meetings as and when required, required, when and and asmeetings CCC 4 2 6 25 UKAC June 2018 June 1 1 2 2 2 PSC . To 2 4 4 5 6 avoid CP 1 1 85 Important Appendix 1 Appendix Important Transparency Report Transparency The board members Member biographies Hywel also Hywel non audit and an in both companies,large on assignments multinational coordinatingexperience in has He in Scotland.UK EY ofPartner Managingand sector Energy Leader andthe Industry Utilities for companies. including many FTSE100 sectors, range ofa across clients Hywel of Audit Hywel Ball banking the across audit non and both serve to continues firms. He securities and globalbankslargest 2015 Globalto and Leader Banking Deputy from 2011 CapitalMarkets & 2008 to 2003 Leader from including positions,leadership held various Ian this to Prior in December appointed to washe arole practice, Assurance Services leads He years, making 30 partner in 1997. over for EY with been has Ian years with EY Ian Baggs leadership his toaddition In Services. Financial for Academy Skills National Board, and the Steering Trade & Investment member aBoard of also Omar is 2011. to from 2008 business Banking Consulting Services ran he the and 2006 partner becoming in in 2001, Omar EY joined 2012. held from January he Markets Banking Leader, positionand UK Capitalpreviously a Omar was globally. clients EY largest the of some for responsibility of than partners more and 200 of team leads a now and 2015, role in October ofPartner Managing Omar is Omar Ali Commerce Chamber of International the amember ofis He diversity inclusiveness. andspeaker supporter and on active Club and an 30% member the of a also is Committee. He Investment its member of aand Trust Business Socialthe member afounding of is industry. He services professional for the Ambassador Business Minister asPrime the appointed by was Steve 2014, JanuaryIn oil including pharmaceuticals, sectors, in variousexperience joined Steve Area Operating Executive (EMEIA) Africa is Steve Steve Varley - audit capacity. audit . He has been with EY for over 30 years, 20 of those as a partner providing services for for apartner providing services as those of 20 years, 30 over EY for been with has the the - depth knowledge of regulation and dealing with regulatory change and has wide wide hasregulatory andchange and regulation with dealing depth knowledge of started his career in the Assurance practice and has worked with many of the world’s world’s many the of with worked has and practice Assurance in the career his started – is – Chairman EY Chairman of 35 years 35 with EY UK in EY in UK – a member of the Audit Committee of the British Museum. British the Committee ofAudit member the of a Managing Partner – Managing Partner, Assurance, Managing Partner, Assurance, – EY UK LLP Chairman sector. 2005 and has nearly 30 years of client and consulting business business and consulting client years of nearly 30 has and 2005 Advisory Advisory responsibilities, responsibilities, – UK and EY EY the Board TheCityUK this to appointed Omar was business. Services Financial UK’s Board and is on the Board of Loughborough University. Loughborough ofBoard the andBoardon is is also a member member of a alsois EY UK EY UK . Omar continues to focus on his portfolio of clients. clients. of portfolio his on focus to Omar continues , the Department for International Trade’s Fintech Trade’s Fintech International , Department for the Financial Services – 13 years 13 with EY Member biographies Member EY UK EY UK EY UK EY UK the EY the EY UK EY and Financial Services & & Ireland Europe, Middle IndiaandMiddle Europe, East, gas and public public and services gas Banking Banking CapitalMarkets & – 2015. 17 years 17 with EY Hywel EY UK EY the EY the and EY 4,500 4,500 was EY EMEIAEY was Financial UK Financial - people, people, with audit clients clients audit UK Head – 31 . 87 Important Transparency Report Transparency The board members Member biographies Foundation. non and executive not in years working the of anumber spent Debbie has country. the across businesses sector public andprivate listed, range ofa with working profession, in the experience years’ 30 over years, has she audit 15 Team. partner for An Debbie leads Debbie years. 10 for schoolcharitable for agovernors chairman of previously wasand Mediate Inter charity the Chairman of Committee Audit the alsois Eamonn regulators. key the with relationships oversees role he this In July 2015. in &Policy Regulatory Public member of a reporting. also financial risk andis Eamonn governance, management corporate torelation in mainly is level committee audit andboardat experience His America. North and JapanUK, sectors service and retail background audit primarily is His with University. Finance &from Lancaster in Accounting (Hons) aBA has andFCA an (ICAEW)is EY partner Audit with an been has Eamonn – Eamonn McGrath change. regulatory complex programmes their onof organisationsservices global financial boardson the advising oncentred has experience client recent segment. His FSOmarket UK represent the for COO was he 2017 June 30 Until Office. Alisdair years 15 with EY Alisdair Mann Independence. to relating including those implementation, and procedures UK’s management risk EY responsible for is she Management protection. employment, andpractice overall litigation, transactions, governance, regulation, contract, of partners matters andonleadership UK EY affecting legal issues all responsible for is Counsel, she dual a is Lisa years20 with EY Lisa Cameron 41 years with EY is the the is O’Hanlon EY UK’s - EY UK's qualified lawyer who joined EY in in 1998 EY joined who qualified lawyer Treasury Treasury – – - executive positions. She is one of the founding founding the of one She is positions. executive ChiefOperating forFinancialOfficer Services Office(FSO) General Professional Standards Panel. Eamonn assumed the role of UK Head of Head UK of role the Eamonn assumed StandardsPanel. Professional - regional business in the UK and is a member the amember ofis and UK in the regional business – Managing and Managed Services Leader for the for Leader the Services Managed and EY UK EY UK . He He . – has extensive experience of working with audit committees in the the in committees audit working experience with of extensive has Counseland Managing Partner, ManagementRisk the Board Head Head Regulatoryof & Public Policy, Audit Partner Partner, plcs , having served clients in the property, property, the in engineering, clients served having , UK in in UK EY EMEIAEY Additionally, Additionally, National London and Manchester for over 25 years 25 for over Manchester Londonand Member biographies Member . A FSO. His role role on His FSO. - for litigator by background, as General litigator General by background, as - Markets as Managing Partner for Risk Risk for Partner Managing as profit sector, as an advisor and in in advisorand asan profit sector, EY EMEIA . She She . trustees trustees and her team advise her and - the wasBoard the 18 years 18 with EY Financial Services Financial Services EY UK&I of the EY the of Leadership Leadership to . He – – 88 Important Transparency Report Transparency The board members Member biographies houses, specialising in the delivery Finance services. Corporate of delivery in the specialising houses, equity private and companies number FTSEof100 a with worked having her career, throughout experiences client diverse ofandrange extensive an had Lynn hasperspective, From aclient EY UK Lynn the joined 2015, JanuaryIn time. during that positions leadership of anumber held has and 2001 since UK apartner EY at been has She services. career entire in professional her spent Lynn has Lynn Rattigan Board. Standards Accounting Group, member Advisory Technical andthe of APB’s member past of a is addition,he In Director. Practice Professionaland Compliance Audit Principal firm’s Committee 2007 Policy IFRSfirm’s Globalthe member of been a has He partner in 1995. audit anbecoming 1985, qualified Robert in Compliance Principal Robert Overend partner partner — – ChiefOperating Officer in the firm’s Accounting Technical Group (Head of Department Department ofandGroup (Head Technical Accounting firm’s in the EY U leadership as team leadership – – 36 years 36 with K Professional Practice Director t he Board the Chief Operating Officer for UK Ireland. &for Officer Chief Operating the EY Member biographies Member — 17 years 17 with EY - 10), and (from 2010) became the the became (from 2010) 10), and and EY UK EY UK Audit 89 Important Transparency Report Transparency The independent non Member biographies Holdings and Tikehau and Capital. Tikehau Holdings Chairman of Deputy Council, Atlantic the Fellow at AmbassadorialDistinguished a is He Wales. ofPrince 2000 from 1997 Americas the for Director Office’s and Foreign the Commonwealth wasHe Brussels. in Commission European the to secondment 40 His France from 2007 to British Ambassador was Peter Sir Fellow. aResident as Government of Kennedy School Harvard’s at asemester spent He 2016. January in Service UK Diplomaticretired from the he until 2012 January from States United the toAmbassador British was WestmacottPeter Sir Sir Peter Westmacott PLC.England UK Bank Barclays Bankofin andbanking, Clydesdale BankPLC,with the years experience during his 40 practical his on based accounting, include competencies David’s Chartered Institute. Banker the ofBoard Scottishand Bankers British Association the former ofDirector Boardand in Scotland, Bankers of Institute Chartered The of President Past a Scotland, Industry British of Confederation Chairman of former a alsois Banks.Yorkshire and Clydesdale He ofCommittee, former CEO andRegulatory Chartered England’s ofPrudential Banker, BankaExternal Davidthe is Member offormer Foundation. 2025 Banker Chartered the Institute chairs Non aDavid is since April 2017 David Thorburn England Wales. ofand Accountants Chartered of Institute the Committee of Advisory The Governance amember Corporate and of Advisory Panel Listing Authority Authority's Financial Conduct member the of a Group) 2016, HSBC until arm European of(the Plc anon Rosemary was Maw.&Mayer, Brown, Rowe partner with a was she Reuters including joining Group Company and Before General Secretary. Counsel roles, in various Group Reuters Plc years with 11 spent GroupLaw having Practicalthe of CEO as served Rosemary previously Institute. Oxford Internet the member boardadvisoryan of alsois Vodafone,Rosemary to and GroupSecretary Company Counsel her role as toaddition In 2018) Rosemary Martin employer, employer, Limited, by audited Cellular companyIdeaEY. merging awith her group as same in the companyLimited, Idea a Vodafoneprior to2018 3 August firm on In order to comply with the AFGC independence AFGC principle the resigned independence the Rosemary Martin from with complyto order - 2001. From 1990 2001. - - year diplomatic career included four years in Iran before the 1979 Revolution and aand Revolution 1979 the before years in Iran year diplomatic included four career executiveoversight committee (IOC) Tellus Financial - Executive Director and Board Risk Committee Chair of Barclays BankPLC and UK BarclaysChair of Risk BoardCommittee andDirector Executive Matrix LLP and an Advisory Director of Campbell Campbell Advisory ofDirector LLP and Matrix an — – Enterprise. He was a founder member of the Professional Standards Professional member the of afounder Enterprise. was He INE INE INE - 1993, he was Deputy Private Secretary to His Royal Highness The The Highness Royal His to Secretary Private Deputy washe 1993, — - – – INE INE appointed onandJune 1 2016 Chair of the IOC IOC appointed (resigned1 Novemberon3 August 2016 – appointed since 1st April2017 - 2000 and Deputy Under Secretary of State from from State andof Under Deputy Secretary 2000 Member biographies Member - 2012 and to Turkey Turkey tofrom 2002 and 2012 - executive director Bank HSBC director of executive Lutyens & Co, Glasswall - 2006. 2006. 90 Important Appendix 2 Appendix Important Transparency Report Transparency EY and Europe transactions material of reports financial the Partner, approvalManagingofEurope the of appointment the as matters, such significant anumber for of required approvalis and its matters, other and strategies policies, on EOE the role to advisoryin an serves Europe. It Sub Governance aEurope up set EY has Europe Europe Governance Sub Managing Tax; and Regional European Partners. all and Services Advisory Transaction Advisory, Assurance, line for leaders service the Management; and Risk Talent Accounts, for leaders the Europe Partner; Managing The comprises: the Europe’s EOE EY operations.of management and execution strategy for accountability and authority has Europe. EY ofboardIt the as (EOE) operates Europe Executive The Operating Europe Operating Executive are: governing EY principal bodies Europe’s November 2008. of EY asUK of control EY acquired Europe voting Limited. EYG both EMEIA amember and in EY Europe. firm is Europe of operating member EYG the firms of control voting acquire will orregulatory requirements, acquired EY has Europe legal and extent permitted the by localTo services. or professional provide any audits carry out not does it (ICAEW), but in England Wales and Chartered Accountants of Institute the firm registered with audit an is Europe. It EYG limited operating in liability member English an the firms ofEY partnership, owned is by Europe partners Limited. EMEIAwith &in Europe conjunction formed entity, Europe), aholding Europe, LLPYoung (EY In Ernst was arrangements Network section, the (see Council Governance Globalthe on representative Region’s the as serves alsoRPF the Presiding ofPartner leadership. as Regional partner The elected boardsounding toa as actand advise representatives Forum Regional (RPF),Partner whose a elects Region Each services. professional provide any not and does operations financial noEYG, hasof amember Limited EMEIA firm is them. controlnot does it but them, between cooperationand firms these of coordinationthe Limited facilitates Area. EMEIA EYG EMEIA in member the for the firms entity coordinating Ernst firms. those of member firms sections or of consist which number Regions, of acomprise Asia Americas, Areas: EYGfour geographic into are member grouped firms The is things, other among and membership structure, boardon committee EY andincluding details UK, of governance the on Information team. FSOleadership EMEIAthe on leader sits Region. UK The FSOseparate asa treated is (FSO),which Office Services Financial EMEIAthe part of 10. toreduced number the has 2018 July from 1 Regions and were 11 there Area, EMEIA the Within Africa. Indiaand East, Middle in the Europe, countries EYG in member 98 comprises firms Area, which EMEIAthe of part EY is UK EYG.ofmember firms the of globalorganisationthe to ‘our’. orcollectively ‘EY refers UK’, EY ‘us’ as‘we’, ourselves refer report, to we &Global Ernst member Limited this limited Young companyby Infirm (EYG), guarantee. ofaUK a is and Wales & In Legal structure, ownershipand governance About us the UK, Ernst & Young LLP is a limited liability partnership, wholly owned by its members, incorporated members, in alimited England liability partnership, by its is UK, owned wholly Young &LLPErnst the EY EMEIA Area & Young (EMEIA) Limited principal Limited the (EMEIALimited), limited Young companyby is &(EMEIA)English guarantee, an UK is part of the UK & Ireland (UK&I) Region, with the exception of its financial services practice, which is which practice, services financial its of exception the (UK&I) & Region, UK with Ireland the part ofis UK included in Section 6: of6: Governance Section included in - Committee - Committee, which includes one representative Region in each from representative one includes Committee, which . this Transparency Transparency Report. this EY global network EY global ). - Pacific, EMEIA and Japan. The Areas The Japan.andEMEIA Pacific, 92 Important Transparency Report Transparency EY. affect could that matters its of aspects interest public the and athree for RPFs elected by their roles, are management senior hold notdo otherwise who Regional The representatives, (INEs). member Region, asatother firm partners from each representatives more one or EYG.comprises body It of main oversight (GGC) the GlobalCouncil is The Governance Global Council Governance needs local to be more and responsive country, in each others and clients with permitting build relationships member Regions, firms stronger to 27 in the focus stakeholder greater for operating allows Areas. This model the within Regional level aon operates network the time, same the Areas. At four the ofleadership the andand teams, committees (GE), Globalits the Executive includes Executive The strategy. shared acommon has aglobalorganisation,EY, principle as that The other EYG various and of regulations by the are EYG governed of as members andentity. Their responsibilities obligationsdistinct alegally is member Each firm high exceptional of promotion include the objectives EYG and diverse complex audits. to required perform such This world. in the country nearly span every high of delivery in the particularly approachimportant is EY integrated the globalmarket, today’s In scepticism. quality, integrity professional andto commitment unwavering an and values building toworld, abetter working united commitment by shared ashare countries 150 than in member more firms EY Network About us is a global leader in assurance, tax, transaction and advisory services. Worldwide, over 250,000 people in people 250,000 Worldwide, over services. advisoryand transaction tax, globalleader in assurance, a is structure and principal bodies of the global organisation during during globalorganisation the principal ofand bodies structure integrated approach enables EY member firms to develop and draw upon the range and depth of experience experience ofrange depth and upon the draw anddevelop member EY firms enables to approachintegrated coordinates the member firms and promotes cooperation among them. EYG does not provide services, but its but provide services, EYG notthem. among does cooperationmember firms promotes and the coordinates - arrangements year term, with provision for one successive reappointment. The GGC advises EYG on policies, strategies strategies policies, GGConEYGreappointment. The advises successive year one for provision term, with decision making decision agreements. - - . The approval of the GGC is required significant GGCnumber the . required for of aThe is of approval quality client service by member by worldwide. member firms quality service client large representatives and up to six independent six nonindependent up toand representatives large . FY18 are FY18 EY global network EY global - quality multinational audits, which can which audits, quality multinational described below. They reflect the described reflect below. They - executives executives 93 Important Transparency Report Transparency organisation the across execution of consistency drive helps and objectives strategic EY’s of understanding common promote a Group to seeks Practice leaders. GlobalThe leaders sector and Regional GE,GE the of members committees, the This group brings together Group Global Practice Advisory Services. Transactionand Tax, Advisory, Markets, Emerging Assurance, Management, Talent, Risk Global Accounts, and Investments, Markets Global for are committees there GlobalCommittee, the Audit GE. toaddition Inthe to making for recommendations are responsible GEcommittees Areas, the four from the GE bringing andby Established the together representatives GE committees member between firms. disputes adjudicate and mediate to power the has GEThe also ► ► ► ► ► ► ► ► ► of: implementation relevant, approval, and,where development, the and globalobjectives of promotion include the GE’sresponsibilities The GE. the amember of as serves Chair who Global anyVice of appointments GGC The Vice Chairs. the Globalofratifies appointments approves GEalsoPartners. The Managing Globalthe of appointments EYG,andof CEO ratify Chairman and the GEfor The GGC nominations the approve and Markets Emerging practices. from the arepresentative aswell as Emerging the Markets Committee, Chair of the and Committee Global Accounts the Chair of the includes GEThe also EYG partner member rotation.on firm lines globalservice the leaders of Finance; Talent andthe for leadership globalfunctional the Partners; Area Managing Enablement; the Business and Service Client of Global Partners Managingits EYG, CEO includes Chairman andand of by the chaired is geographies. and It services (GE)functions, leadership brings Global The together EY’s Executive Global Executive committee. dedicated by a are nominated INEs The management risk in discussions. quality and engagement and views stakeholder on procedures, perspectives and policies under raised whistleblowing making, decision issues of aspects interest public Sub Interest Public the majority of form a also knowledge. INEs The depth andof varied perspectives their of GGC,benefit significant and organisation,the the global backgrounds. bring They the to professional andgeographic diverse reflect and sectors, private andpublic the Independent Non six Up to Independent Non About us GGCrecommendations and reports budgets financial annual EYG’s priorities investment and funds development EY’s branding and development, markets business clients, international of member firms’ relating guidance service toand Policies regarding and policy public regulatory Proposalsmatters programmes protection and improvement Quality partners retirement of development, reward and evaluation,admission, for and including criteria processes initiatives, People member firms be promoted towithin policies and methodologies standards, Common and plans Globalstrategies — Assurance, Advisory, Tax and Transaction Advisory Services; the Global Leader for Public Policy; and one one and GlobalPolicy;the Leader Public for Advisory Services; Advisory, Transaction andTax Assurance, - Executives Executives - Executives (INEs) are appointed from outside EY. The INEs are senior leaders from both both from are leaders senior EY. 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Theyof care command - executives should termsandbe forany appointed specific - EXECUTIVES - executives on firm’s auditorsthe independence asand - failure. executive shouldcontractfor a haveservices setting - - executive should competencehave in accounting executives members of the and firm’s management - executives principle - AFGC executive should include, not but - executives principle - executive in of respecttheir - executive with sufficient - executive - audit Audit firm governance code governance firm Audit Section Section 6 Section 1 Appendix1 Section 6 provisionsand principlesthe addressingisUK EY How Section Section 6 Section 6 Appointment Service. and of part INE’sof Letter the a as Appropriate Section 6 Section 6 Executive OversightCommittee from Chair the Independentof the Non Section 1 Section 6 their rightsandduties INE which contract, outlinesa Eachhas Section 6 Section 6 – ------Leadership messagesLeadership Governance Governance Governance Governance Governance Leadership Governance Governance Governance Governance - indemnity indemnity insurance in placeis M ember biographies messages – Report - 116 Important Transparency Report Transparency AFGC 2016 Compliance standards on standards auditing,quality control includingandethics, auditorindependence. regulatory andlegalrequirements andapplicableinternational andnational firm D.1.1 Theshould establishforpoliciesand procedurescomplying with should beinvolved oversightin the of operations. quality reputationauditandthe firm. of the regulatory requirements.Operations shouldpromotes way bein that conducteda A firm should comply and with professionallegalstandards and applicable D.1 OPERATIONS 2016the of provisions and Principles audit practice within within practiceauditUK. the solvency or liquidity. including thosewould that its businessthreatenmodel, future performance, firm D.2.3 Theshould robustout carryassessmenta the principalof facingit,risks managementcommentary. control of any significantproblemsaspects disclosed financial in itsstatements or It remedyany taken significant to failingsidentified weaknessesfrom or review. that andconfirm actions necessaryprocessit applied hasbeenbeingthat have or are the of effectivenessof internalreview systemthe of control, summarise the firm D.2.2 Thein shouldhas its transparencyit reportperformeda state that underpinnedby sound andvaluesbehaviour within the firm. riskpromotion well managementthe assystems as anculture of appropriate controls,all material including financial, operationalcompliance andcontrols and Independent firm’s the of internalsystem control. firm annually, D.2.1 Theshould, least at of reviewthe of conduct a effectiveness stakeholders. over operationswhole the firm safeguardthe andthe reassure firm to of a as A firm should maintain sounda internalsystem of control andrisk management managementRisk D.2 principle regulatorsin relation firm’s to the audit work. firm of D.1.4 concernTheareasidentifiedshouldby action audit take to address proceduresmanagingfor conflicts andpotentialactual of interest. D.1.3 or otherwise. groupauditsincluding on relianceauditors other from whetherthe networksame groupreportsauditstandards toon comply with auditing applicable with dealing D.1.2 should also disclose the process it has applied to deal with material internal dealwith shouldmaterial to disclose processit appliedhasalsothe Compliance principle The firm Thein should its policiestransparencyreportappliesstate how andit firm Theshould establishforpoliciesand proceduresindividuals signing non - executives should involved be in the which reviewshould cover This the shouldsustainability of specificallyreferencethe The independentThe non AFGC - executives Audit firm governance code governance firm Audit Section Section 2 practices Commitment to quality & Appendix2 Section 5 Section 2 Commitment to quality Appendix Section 5 Section 2 Executive OversightCommittee from Chair the Independentof the Non Section 1 provisionsand principlesthe addressingisUK EY How Section Section 5 Section 1 Section 5 Section 5 Section 1 Section 5 Section 2 Independence Appendix2 Section 5 2 ------— – - – - - Trustin Risks Trust Risks Trust Leadership Risks messagesLeadership messagesLeadership Trustin Risks Risks Risks - - - Risks EY Global EY Network Global EY Network EY Global EY Network practices in audit in audit audit audit messages Independence - - - – Report - 117 Important Transparency Report Transparency AFGC 2016 Compliance recognition, representationandinvolvement. performanceevaluation, remuneration, progression,formsand other of Governance Codethrough recruitment, developmentactivities, setting, objective professionalism,the opennessmanagementandrisk principlesthe Auditof Firm D.3.1 managementprinciples of this Audit Firm Governance Code. firm that support A firm should policiesapplyandprocedures managing the for acrosswhole people D.3 OPERATIONS 2016the of provisions and Principles procedureson website.its whistleblowingits policiesanddiscloseprocedures those and policiesand D.4.1 whistleblowing in processplace. Theindependent non properlythe that takesvalues public interest way into in consideration.a the aboutfirm’s commitment to quality work andprofessional judgementand firm proceduresthe to report,acrosspeoplewithout which enableconcerns fear, A firm shouldconfidential establish andwhistleblowingapply policiesand D.4 structures,to ensurethe is that publicprotected. interest managementpolicies includingandprocedures, remuneration incentive and D.3.2 Whistleblowing principle managementPeople principle The firm Theshould independentreportto non Independentnon firm Theshould how disclosesupportson website commitment its it its to its commitment commitment professionalism,to the opennessrisk and - executives an thereis shouldeffective that besatisfied - executives should beinvolved in reviewing people - AFGC executives on underissuesraised Audit firm governance code governance firm Audit agenda of of the IOC.agenda standingof the partis protectedinterestis incentive structures)to ensurepublic the procedures(incl. remuneration and people management Review of policiesand / Continuing education of professionalsaudit Appendix 2 Section 3 Section 2 Section 1 Continuing education of professionalsaudit Appendix 2 Section 3 Section 2 Section 1 provisionsand principlesthe addressingisUK EY How Appendix2 Section 5 discussed.proceduresare underwhistleblowing policiesand which meetingsreportsat on issues raised UK at LLP Board via effective attendanceis themselveswhistleblowingthe that process Independentnon Section 5 Partner Remuneration Partner ------– Our people Trust messagesLeadership Our people Trust messagesLeadership Risks Risks - - - EY Global EY Network Global EY Network EY Global EY Network - in audit in audit executives satisfy - - 118 Important Transparency Report Transparency AFGC 2016 Compliance compliance. with the Code’sprovisions giveor consideredexplanationa for any non Auditthe Firm Governance Code A firm shouldthe of publicly principlesof each in reporthow it applied haspractice Governance E.2 reportingprinciple them to duties.dischargeenabletheir information timely in a manner andformin to a and quality of appropriatea structures,including owners andindependent non Themanagement firm of shoulda ensuremembersgovernance of that its Internal E.1 reportingprinciple REPORTING 2016the of provisions and Principles its duties.its committee audit should descriptionpublishwork of its a andhow it dischargedhas appointment and firm’s of independencethe auditors. with clearly authority its dealandduties,including its dutiesin relation to the information on committee’s the membership termswhich shouldand of reference firm TheshouldE.4.1 committee establishauditandisclose on and its website firm’s the auditors. quality of reportingexternal andfor maintaining relationshipappropriatean with A firm should establish formal and transparentarrangements for monitoring the Reporting E.4 quality principle entirety. E.3.2 those anddescriberisksexplain being or how managedthey mitigated.are businessmodel, future performance,solvency or liquidity. principal risksfirm, including audit facingthe thosewould that threatenits firm TheshouldE.3.1 confirm robust out it assessmentcarrieda hasthe that of on the firm’s performance,position prospects.and A firm should publish on an annualtransparencyin commentary its basisa report Transparency principleE.3 own governancestructure. provisions from UKthe CorporateGovernance within Codewhich it adopteditshas InE2.2 transparencyreportfirm its the should any additionalgivedetails of andE.3.1. E.2.2 D.1.3, D.2.2, containing disclosuresthe CodeProvisionsrequiredby A.1.2, C.2.1, A.1.3, B.1.2, firm TheshouldE.2.1 publish annualon an its transparencyreportwebsite The transparencyshouldTheandin report balancedunderstandable its fair, be (AFGC) on statementa its and compliancemake AFGC - executives, aresuppliedwith On an annualthe basis, Thefirm should - Audit firm governance code governance firm Audit CorporateGovernance Codehave been No additionalprovisions of the UK website individual to Refer codeprovisions our and report throughoutalso See this transparency Section 6 Section 6 provisionsand principlesthe addressingisUK EY How Terms of references documentTerms of references on website Section 6 Section 6 Board. and reviewapprovalthe LLP UK by EY This to is Policy bothteam. reportsubject coordinatedthe by Regulatory UK& Public extensiveexperts,matter subject The Section 6 Section 5 Section Section 1 AFGC.the in beyondreflected that adoptedthoseare Transparency Report is Reportby Transparencywritten 4 - – - – - – – - Governance Governance Governance messagesLeadership Governance Governance Risks Results 119 Important Transparency Report Transparency AFGC 2016 Compliance concern of accountingbasis identify material and uncertaintiesany ability to to its E.5.2 standards. responsibilities,reportauditin extended preferablyaccordancewith the statementsfirm’s andthe auditors aboutshouldreporting their make statementa firm TheshouldE.5.1 explain who is responsiblefor the preparingfinancial or StandardsGAAP,UK andshouldclearandconcise. be recognisedfinancial reportingframework such Internationalas Financial Reporting A firm should publishin accordancefinancialwith a statementsauditedprepared Financial principleE.5 statements DIALOGUE 2016the of provisions and Principles considered of usevotes in relation to recommendations.such recommending the appointmentre and Shareholdersshould dialogue havewith listedcompanies on processof the F.3 communication and understanding. Shareholdersshould dialogue havefirms with audit enhance mutual to F.2 dialogue. natureandextent involvement of the of independentnon on the hadduringhasdisclosuresdialogue Theseit year. shouldthe cover the Codewith listedcompany shareholdersandlisted dialogueaboutdetails,forthis contact by Audit matterscovered Firm Governance F.1.1 Thefirm should disclosepoliciesandon procedures,its its includingwebsite in touch ensureit keepsthat with shareholderopinion, issuesandconcerns. Governance Codeto enhance mutual communication understandingand and companiesandtheir committees, auditcoveredaboutthis by Audit matters Firm A firm should have dialogue listedwith listedcompany well shareholders,as as F.1 continue to so, do with supporting assumptions or qualifications necessary.as Informed voting principle Shareholder dialogueprinciple Firm dialogueprinciple The firm Thewhethergoingadoptshouldconsiders the to it stateit appropriate - appointment of auditorsandshould make AFGC companies. - executives in such It should reportalso Audit firm governance code governance firm Audit engagement Section 2 Section 1 House end of filed2018). Oct(to be from statementsavailableCompanies Ernstthe & See Young LLP financial House end of filed2018). Oct(to be from statementsavailableCompanies Ernstthe & See Young LLP financial House end of filed2018). Oct(to be from statementsavailableCompanies Ernstthe & See Young LLP financial provisionsand principlesthe addressingisUK EY How investors andlistedcompanies. encouragewe activitiesdialogue between Through engagement Section 2 engagement Section 2 Section 1 transparencyreport on availablethe areContact details engagement Section 2 Section 1 our stakeholderengagement - - – - - - - Trustin audit messagesLeadership Trustin audit messagesLeadership Trustin audit messagesLeadership Trustin audit webpage - - - - Stakeholder Stakeholder Stakeholder Stakeholder 120 Important Appendix 4 Appendix Important Transparency Report Transparency EU Audit Regulation information. The table below shows where these disclosures can be found in this Transparency Report. Transparency this in found be can disclosures shows below The these where table information. certain disclose to UKis EY required (537/2014) AuditRegulation of The EU 13 Article Under ii. i. statutory b)wherethe auditor membernetwork: the or firm auditis of a a a) Provisions iv. iii. ii. i. statutory auditor the or firm, dividedaudit into following the categories 4(2) of 2013/34/EU, Directive information about total turnoverthe the of k) where rotation in key accordancestaffwith Article17(7) of partnersandaudit j) a i) information of 2006/43/EC Directive13 concerning continuingthe education of statutory in auditorsreferredto Article h) a complianceindependence beenhasconducted which confirmspracticesindependence also an that internal of review g)a out carriedstatutory auditsduring financial precedingyear the a f) out carriedwas ane) its effectivenessfunctioning the of byfirm statement administrative auditof the the andor a management bodyon d)a a c) iv. iii. description of of descriptionthe statutory auditor's or firm'saudit the policy concerning the list of public description governanceof the structure of description of the legal structuredescriptionandthe ownership legalof firm auditof the statement on the policy on statementpolicy followed the statutory the auditorby or firm audit the concerningstatement statutory the auditor's the or firm'saudit descriptionthe internalof quality control system statutory of the auditor or indication to in Article the 26 of quality referredwhen assurancereview last r statutory the auditor or firm; audit the and revenuesfrom non permitted statements of entities other revenuesfrom statutory of the auditannual andconsolidated financial undertakingsundertaking parentwhosepublic is a statements of public revenuesfrom statutory of the auditannual andconsolidated financial from statutory of the auditannual andconsolidated financial statements memberspractitionersthe andfirms are audit network, of that resulting the administration of businessor placeprincipal statutory auditor his, centralhasor office, its or herregistered practitioneror member networkfirm of auditthat a the is a qualifiedasis the member networkfirm of that a the is the networkthe descriptiona networkof andthe legalstructural andarrangementsthe in evenues not in disclosedits financial statementswithin meaningthe of Article total total turnover by statutory the auditorsachievedoperating sole as countries in which statutory auditorsole a each operatingas statutory namepractitioner auditorsole of or a each operating audit as concerningfor partners' basisthe the remuneration in firms audit Regulationthe of from non - interestentities - audit to otherservices - interest entities interestandbelonginggroup to a of for - audit by auditedto that entitiesservicesare which which statutory the auditor or firm audit the the entities audit firm audit - interestentity : EU audit regulationaudit EU Appendix 2 Appendix 2 Appendix 2 Appendix 2 Section Regulation the with compliesUKEY how on information find to Where Section Section Section Section Commitment Appendix 2 remuneration Appendix 2 Continuing education of professionalsaudit Appendix 2 Independencepractices Appendix2 Section 5 Appendix Section 2 Appendix 2 Sectio Appendix 2 Section Appendix 2 n 5 6 4 4 4 4 6 6 6 – - – – – – – – – Results Governance Results Results Results Risks Trust Risks Governance – – – – – – – – – – – – EY Global EY Network Global EY Network Global EY Network Global EY Network EY Global EY Network Global EY Network Global EY Network Global EY Network Global EY Network Global EY Network Global EY Network to quality EY UKclientsaudit EY PIE in audit – – – – Partner 122 Important Appendix 5 Appendix Important Transparency Report Transparency (Transparency) Instrument 2015 Financial reporting council its functioning its in relation to local work. audit bystatement administrativeauditora the andor management bodyon of effectivenessthe descriptionA3. internalof the quality control system transparencyof reportingthe local networkgovernance andthe andstructural legal, arrangements network. of the the Wheretransparency2. reporting local auditorbelongs network, descriptionto a a of the reportinglocal auditor. descriptionA1. structure, legalof governancethe andownership transparencyof the Regulationtheof Provisions 10. Information 10. forabout remunerationbasisthe the of partners. auditor’saudit local work. includingreport relates,the showing importanceof the the transparencyof reportinglocal Turnover9. for financialtransparency of reportingthe year local auditor which to the maintain theoretical their knowledge,professional sufficiently a skills andat valueshigh level. to ensuredesignedthat personseligiblefor local appointmentauditorcontinuea as to on statement transparencyAof 8. the policiesandreportingpracticesthe auditor local transparencylink the andsuchbetween reportlist. is a established in specifiedregulationprovidedclearon website a the 4 elsewheremade that available be transparencyreportinglocal auditorin financial auditor; of the year and any list such may list A 7. of major byof which local beenthe hasauditsanin made respectreport audit and28(7) to the 2 took 1, of Act,Schedule5 place. in Companiesthe applied asrelationlocalSection and paragraphsauditsAct by to 2006, 17 local auditorof local functions, audit within meaning the to of Schedule10 23 of paragraph of statementmonitoringAwhen6. last the performanceof the by transparency reportingthe working staff on assignmentssuch are Confirmation 5. arecompetentto auditundertake engagementleads localthat work all and conducted. including practices confirmation a that internalan beenof hasreviewindependence practices descriptionA4. transparencyof the reportingauditor’s local proceduresindependence and suitably trained. – The local auditors Local auditors instrument Localauditors – Appendix2 Section 5 Appendix2 Section 5 messages Section 1 Appendix 2 Section 6 Appendix 2 Section 6 Regulation thewith complies EY how on information find to Where – Appendix 2 Section 4 professionals – Appendix Section 2 Appendix Section 2 localto work. their audit trainingsectorspecific specific of professionals’audit Network in ‘Appendix additionthe trainingto outlined who, in publicsectorstaff audit supportedby andarededicated partners’with audit ICAEWthe ‘key as registeredareaudit for All local engagementleads Independencepractices Partner remunerationPartner Continuing education of audit – 2 5 – - – – – – – – Continuing education Risks Risks Leadership Governance Governance Results Trustin audit Trust – - – – – – – 2 EY Global EY Network EY Global EY Network Global EY Network Global EY Network EY Global EY Network Global EY Network Major local audits – EY Global EY in audit receive 124 Important Transparency Report Transparency In Major local audits Derby Derby City Council Bedfordshire Central Council Trust NHS University Hospitals and Brighton Sussex City Council and Brighton Hove Fund Pension Bedford Borough Council Bedford Engagement Group Commissioning Clinical Sussex West Coastal NHS GroupCommissioning Cambridgeshire Peterborough Clinical and NHS City Council Newcastle Council Keynes Milton Council Middlesbrough Fund Pension Merton Council Merton Borough Council Luton LondonFire Emergency and Planning Authority Fund Pension Newham LondonBorough of Newham LondonBorough of Fund Hillingdon Pension LondonBorough of Hillingdon LondonBorough of Fund Pension Council Havering LondonBorough of Council Havering LondonBorough of Fund Pension Hertfordshire Council County Hertfordshire Fund Pension Hampshire Council County Hampshire Greater LondonAuthority Trust FoundationGloucester Fund Pension Essex Council County Essex FY18, EY UK performedthe following major Local Audits: NHS LG Pension LG LG LG NHS LG LG Pension LG Sector NHS NHS LG LG LG LG Pension LG LG LG LG Pension LG LG Pension LG LG Pension LG LG Pension LG LG Pension LG LG Local auditors instrument Localauditors Foundation Trust Foundation Fund LG Pension County Council Authority Unitary Authority Unitary Trust NHS Acute Authority Unitary Fund LG Pension Authority Unitary Types Clinical Commissioning Group Clinical Commissioning Group Clinical Commissioning DC Metropolitan Authority Unitary Authority Unitary Fund LG Pension LondonBorough Council Authority Unitary Fire Authority Fund LG Pension LondonBorough Council Fund LG Pension LondonBorough Council Fund LG Pension LondonBorough Council Fund LG Pension County Council Fund LG Pension County Council GLABodies Functional and 125 Important Transparency Report Transparency Major local audits Northumberland Northumberland Council Fund Pension Norfolk County Council Norfolk Clinical GroupCommissioning Oxfordshire NHS Group Clinical Commissioning Suffolk and East Ipswich NHS Group Rugby Commissioning andCoventry Clinical NHS Engagement West Sussex Pension Fund Pension Sussex West County Council Sussex West Wandsworth Wandsworth Council Borough Metropolitan Walsall London Transport for Fund Pension Suffolk Council County Suffolk Fund Pension Staffordshire County Council Staffordshire City Council Southampton (Tyne Fund Tyneside Wear) Pension & South Tyneside Council South Council Sefton Trust NHS Hospitals Portsmouth City Council Portsmouth Valley for Crime Commissioner Thames and Police for Crime Commissioner Kent and Police for Crime Commissioner Hampshire and Police City Council Peterborough Fund Pension Oxfordshire County Council Oxfordshire Pension Fund Pension Borough Council LG LG Pension LG LG LG Pension LG NHS NHS NHS Sector LG Pension LG LG Pension LG LG LG LG Pension LG LG Pension LG LG LG Pension LG LG NHS LG LG LG LG Local auditors instrument Localauditors Unitary Authority Unitary Fund LG Pension County Council Authority Unitary Fund LG Pension County Council Group Clinical Commissioning Group Clinical Commissioning Group Clinical Commissioning Types LG Pension Fund LG Pension County Council Fund LG Pension LondonBorough Council DC Metropolitan GLABodies Functional and Fund LG Pension County Council Fund LG Pension County Council Authority Unitary Fund LG Pension DC Metropolitan DC Metropolitan Trust NHS Acute Authority Unitary Crime Commissioner and Police Crime Commissioner and Police Crime Commissioner and Police 126 Important Appendix 6 Appendix Important Transparency Report Transparency Airways plc British plc BP CapitalMarkets plc BP plc Throgmorton Trust BlackRock plc Trust Greater Europe BlackRockInvestment plc Trust Frontiers Investment BlackRock plc Trust Investment Commodities Income BlackRock Biz Finance plc BGEO plc Group Energy BG Capitalplc BFC Limited Bank plc Trust Healthcare BB plc International Bank Sepah plc Middle The Londonand East Bank of UK Cyprus Limited Bank Of Limited (UK) China Bank Of Drilling Awilco plc Group AVEVA plc plc British Foods Associated Ashdowns plc III Finance Artesian Limited Argo Agency Underwriting plc Holdings Plus Alpha Bank plc (UK) United Ahli Ltd ADIB(UK) Finance plc ABP plc Trust Income Aberdeen Companies Smaller Growth plc andTrust Aberdeen Diversified Income plc Trust Investment Companies Smaller Aberdeen Asian Bank plc International ABC Limited Company Abbey Assurance Life Underwriting AA Limited plc AA Group3i plc FY18, In EY UK PIE audit clients EY UK performed audits of the following PIEs: following the performed of UK audits EY Limited Coca Clydesdale plc Bank Bank Civilised Ltd Limited Insurance General CIS plc Markets CIBCWorld plc Trust Growth & Income JapanCC plc Direct Trust Castle Limited 3 Care Homes Limited 2 Care Homes Limited 1 Care Homes Burford Capitalplc Co. &Limited Brown Shipley plc Britvic Fidelity China Special Situations plc Situations Fidelity China Special plc Values Fidelity Asian FGICLTD UK Equity plc F&CTrust Private plc Trust F&C PortfolioManaged EVRAZ plc Europe Bank plc Arab plc Trust Opportunities GlobalEP EnQuest Energean Limited Endurance Insurance Worldwide Ei plc Trust Edinburgh Investment Worldwide Ecofin Domino'sPizzaGroup plc Dignity plc Dignity plc Finance plc De LaRue CYBG plc Finance (U.K.) plc CRH Building Coventry Society & Limited Company Coutts Co Co plc Communisis Group plc - - operative Group Limited operative Limited (2011) Group Holdings operative - Cola European Partners plc Partners European Cola Global Utilities and Infrastructure Trust plc Trust and Infrastructure Utilities Global EY UK PIE audit clientsauditPIE EY UK plc Oil & Gas plc GasOil & 128 Important Transparency Report Transparency JPMorgan plc Trust Brazil Investment JPMorgan Menzies plc John plc Sainsbury J plc Investec plc Trust Investment Investec plc Bank Investec plc Trust Growth Income Invesco plc Group Hotels InterContinental (GB)LTD INSURANCE Inceptum Impax plc IMI Company Life Assurance Hodge Hochschild (UK) plc Capital Hitachi plc Trust Investment Herald plc Trust European FocusHenderson Havin Bank Limited (UK) Gulf International Greene King plc Greene King plc Finance Group plc Georgia Healthcare Gemgarto Gemgarto Living plc GCPStudent Fresnillo Forterra plc Trust Foreign Colonial&Investment CoLtd Insurance FM Ltd FloodRe First Hydro Finance plc Finsbury 2016 Square Finsbury 2016 Square plc Housing SocialResidential Finance for plc Fidelity Values Special plc Trust Fidelity Japan Fidelity European plc Values EY UK PIE audit clients Bank Ltd Environmental Markets Markets plc Environmental plc plc Insurance CoLtd Insurance 2015 2015 Claverhouse Mining Mining plc - - 2 2 plc 1 plc - - 2 2 plc 1 plc Investment Trust plc Trust Investment Landmark Mortgage Securities No.3 plc No.3 Landmark Securities Mortgage plc No.2 Landmark Securities Mortgage plc No.1 Landmark Securities Mortgage Group plc Land Securities plc CapitalMarkets Land Securities plc Issuer Lanark Master plc Securities Mortgage Kensington plc Trust European Jupiter Opportunities Bank Limited Hodge Julian plc Securities Russian JPMorgan plc GlobalTrust Emerging JPMorganMarkets Income plc Trust European Investment JPMorgan plc Elect JPMorgan Natwest Company Limited BANK Public WESTMINSTER NATIONAL Limited Friendly Deposit Society National plc (International) Kuwait Of Bank National Nanoco plc Trust Murray International plc Trust Murray Income Monzo Montanaro Montanaro plc Trust Investment Monks plc Mizuho International Miton plc No.1 Mercia plc Trust Currie Martin GlobalPortfolio Ltd Funds Pension Managed Majedie plc LSLServices Property plc Company Investment Lowland Group Exchange plc LondonStock LondonGeneral CompanyLife Limited CompanyLondonGeneral Insurance Europe plc Insurance Liberty Mutual Lannraig Uk Bank Limited Group plc Investments plc Investments EY UK PIE audit clientsauditPIE EY UK Markets plc Markets Microcap Trust plc Trust Microcap plc Issuer Master UK Smaller Companies Investment Trust plc Trust Investment UK Companies Smaller European plc Trust Companies Smaller 129 Important Transparency Report Transparency Ltd UK &Life Pensions Sanlam Sanditon plc Sainsbury's Bank Group plc Insurance Sabre Company Limited Insurance Sabre plc Shell Dutch Royal Lending Direct plc Secured RM plc 28 Securities Mortgage Residential plc 26 Securities Mortgage Residential plc 25 Securities Mortgage Residential plc 23 Securities Mortgage Residential plc Renishaw RELX plc plc RELX (Investments) Group Rank Finance plc plc Petroleum RAK Qib Oil plc Premier Polypipe Group plc Limited Life Phoenix Limited Assurance Life Phoenix plc Trust Assets Personal plc Persimmon plc Trust &Investment Growth Income Perpetual Group plc Pennon Limited PCFBank PageGroup plc Trust Horizon Investment Pacific ( Pa plc Management Opportunity Investment Ophir Energy plc RE LTD ONE plc No.1 Offa Building Nottingham Society GasOil & plc Nostrum plc Bank International Nomura plc Health NMC plc Trust Investment Star New EY UK PIE audit clients ( Gi Uk ) Limited ) ) Investment Trust plc Trust Investment plc Spire Healthcare plc Group Healthcare Spire plc Finance Water West South Sompo Softcat Number RoadFour Finance plc Silk Shortline plc Income Shires plc Shaftesbury plc Chinatown Shaftesbury LIMITED BANK HAMBROS KLEINWORT SG &plc Trust Growth GlobalIncome Seneca ScotGems UK Ltd Company SCOR The Scottish Oriental Smaller Companies Trust Companies plc Trust Oriental Smaller ScottishThe GroupSage The plc Limited Company Public Scotland of BankRoyal The Group plc Scotland of BankRoyal The Rank The Group plc plc Trust Investment Independent The plc No.1 Series Investments Securitised Education Higher The Gym The Group plc Company Dominion The Insurance plc Trust Income Diverse The Co The plc Trust Growth Biotech The plc Trust Investment Bankers The plc Trust Temple Bar Investment Temese Td Europe Bank Limited Tandem Bank Limited Company Limited Insurance Stronghold Water Stirling plc Trust Companies Smaller UK Life Standard Stallergenes Group plc Stagecoach plc Spirit Issuer plc Communications Spirent - Japan operative Bank plc Bank operative plc Funding plc Funding 2 EY UK PIE audit clientsauditPIE EY UK plc plc Greer Greer plc Nipponkoa Seafield Finance plc Finance Insurance Co Of Europe CoOf Insurance 130 Important Transparency Report Transparency ZEAL SE Network plc Street Winchester City Finance plc Stratford Westfield Bank Limited Wesleyan Society Assurance Wesleyan Company (U.K.)Limited Insurance Wausau Company plc Development Campus Waterside plc 2 No Mortgages Finance Residential Warwick plc 1 No Mortgages Finance Residential Warwick plc VTB Capital Volution plc Resources Vedanta Usaa Limited Unum Company plc Finance Unique Pub The Limited UBS Limited Life Management Asset UBS Limited Company Trent Insurance Transre London Transport for CookGroup plc Thomas plc No.2 Theatre (Hospitals) plc No.1 Theatre (Hospitals) Manchester University Of The Insurance Limited Company Underwriter The EY UK PIE audit clients Limited LondonLimited Group plc EY UK PIE audit clientsauditPIE EY UK 131 Important Transparency Report Transparency Glossary AQST AQRT AQR AQI AQB AFGC EY GAM Foundation EY EQCR EPIC EOE EMEIA D&I CP CMP CMA CEOs CCC BRET Big Four BAME EY Global Audit MethodologyEY Audit Global 2014 by EY in up independent set An charity Reviewer Engagement ControlQuality Capitalism Inclusive for Embankment Project Europe Executive Operating Europe, Middle inclusiveness and Diversity Panel Conflicts Partner ManagingCountry Authority Markets Competition and Officers Executive Chief Committee Conduct of Code Tool EvaluationRelationship Business PwC Deloitte, KPMG,networks: EY, auditing and globalaccounting four largest The minority andethnic Black,Asian Support Team Quality Audit Team Review FRC’s Quality The Audit programme Review Quality EY Audit Global Indicators Quality Audit Board Quality Audit Firm CodeAudit Governance - East, India and Africa East,Indiaand PIC PCAOB PACE ORITP NOCLAR NED LLP LEAD RemCo QELs QAD PY PSC PSAA PRG PRA PPEDDs PMDP PLOT plc PIE Global Public Interest Committee Interest Global Public Board Oversight and Company Public Accounting US engagements and clients of for acceptance Process Third Party Informed and Reasonable Objective, The Conduct GlobalofEY's Code Non Limited liability partnership Development and Leadership Evaluation Remuneration Committee Remuneration Enablement Quality Leaders the of Department Assurance Quality year Prior Sub Pension Ltd Appointments Audit Sector Public Group Reputation and Policy Authority Regulation Prudential directors partners and Partners, principals, associate Process Development and Management Performance Led Purpose limited company Public Entity Interest Public ICAEW - Executive Executive - Outcome Committee Director - orientated orientated Thinking 132 Important Transparency Report Transparency Glossary GDPR GDPP FY FTSE FRC EYG EY UK CBM KPI ISQC No. ISAs IOC INE IFRS IESBA ICAEW IAASB GMS GGC GE 1 Key Performance Indicator Key Performance 1 No.Control Quality on Standards International Auditing on Standards International Committee Non Independent Non Independent Standards Reporting Financial International Accountants for Board Standards Ethics International England and Wales in Chartered Accountants of Institute Board Standards Auditing Assurance and International System Global Monitoring GlobalCouncil Governance GlobalExecutive 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