Transparency Report
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www.pwc.se Transparency report Annual report on PwC’s Swedish auditing practice Financial year 12/13 Contents Introduction 3 Legal structure and ownership of the firm 3 Major operating companies 3 Company Management – Organisation and areas of responsibility 4 PwC – International Network 4 Audit Quality Control System 5 Introduction 5 Quality Control Standards 5 1. Leadership Responsibilities for Quality within the Firm 5 2. Ethical Requirements 5 3. Acceptance and Continuance of Client Relationships and Specific Engagements 5 4. Human Resources 6 5. Engagement Performance 6 6. Monitoring 6 Documentation of the quality control system Efficiency of the Quality Control system 7 Application of Independence requirements for the firm and its auditors 7 1. Organisation 7 2. Policies and guidance 7 3. Training and confirmations of Independence 7 4. Independence systems 7 5. Monitoring of independence procedures and practices 8 Supervisory Board of Public Accountants’ Quality Control 8 Professional development and training for auditors 9 Principles for remuneration to partners 9 Financial information 9 APPENDIX 1 Audit clients whose securities are listed for trade on an EU Regulated Market 10 2 PwC’s Swedish operations Transparency report 12/13 Introduction Legal structure and nomination committee and supervisory ownership of the firm body in ownership related issues. This Transparency Report is published The Board consists of 13 members and in accordance with the requirements PwC’s operations in Sweden are pri- 3 staff representatives. of Section 22a of the Auditors Act marily divided between two operating (2001:883) and the Accountants companies: PricewaterhouseCoopers AB The Board normally convenes five to six Ordi- nance (1995:665), which aligned and Öhrlings PricewaterhouseCoopers times per year and deals with standard the Swedish regulatory regime with AB. The Group also holds a number of governance issues. The auditors of the Article 45 (s)(e) of the Directive on smaller, non-operating subsidiaries in Group report their observations at one Statutory Audit 2006/43/EC. the process of being liquidated. of these meetings. Only partners who are active in the firm, along with staff The Transparency Report is in respect of The Group’s parent company is representatives, may be represented at the financial year 1 July 2012 – 30 June PricewaterhouseCoopers i Sverige AB, the Board. 2013 and the companies named below. which is owned by 256 active partners of the Group. Partners are responsible for the business on the basis of a strong, one-firm con- Major operating companies: cept, which means that the Group is ac- tive on the market as one single compa- ny. The Partners’ Consortium, PricewaterhouseCoopers i Sverige AB which is the highest decision-making 556126-4259 body within the firm, has two General Meetings per year. In addition to the decision-making function of these meet- ings, they also serve to provide general information regarding the company’s Öhrlings Price waterhouse- Pricewaterhouse- operations, and significant issues are Coopers AB Coopers AB 556029-6740 556067-4276 discussed in plenary, or in smaller groups. The General Meeting appoints a Board of Directors, a Chairman, the Territory Senior Partner (TSP), the CEO and the Deputy CEO, as well as a shareholder group and its chairman. The shareholder group acts as the 3 PwC’s Swedish operations Transparency report 12/13 Company Management – Company management has, during the PwC – International Organisation and areas of financial year, been comprised of the Network following individuals: responsibility “PwC” refers to the network of mem- Henrik Steinbrecher, (until 16 March ber firms of PricewaterhouseCoopers Company Management has consisted 2013)/Peter Nyllinge* (from 17 March International Limited (“PwCIL”) and/or of the Territory Senior Partner (TSP), 2013), Territory Senior Partner, Head one or more of its member firms, each of the Chairman, the CEO and two Deputy of the Swedish firm’s international which is a separate legal entity. CEO’s. The Territory Senior Partner is operations and dealings with PwC the convener of the meetings and leads globally. the work of the management. The Swedish parent company, PricewaterhouseCoopers i Sverige AB, Peter Clemedtson, Chairman of the and certain subsidiaries, are members Management formally convenes as soon Board, responsible for leading the work of PwCIL. as it is called for by issues raised, which, of the Board and the annual Partner in practice, means at least once a month. Meetings. In addition, management also regularly PwC member firms operate locally in countries around the world. Being a summons the larger executive team Hans Börsvik, CEO, responsible for member of the PwC network means which, in addition to corporate manage- running the day-to-day operations of firms can use the PwC name and draw ment, comprises the heads of our three the firm. business areas (Assurance, Advisory on certain resources, methodologies, knowledge and expertise within the and Tax). The heads of Risk and Quality, Kenneth Stjernström, Deputy Mana- PwC network. Each member firm also Marketing and Human Resources can ging Director, responsible for finance agrees to abide by certain common be called to the meetings. The executive and administration. team is led by the CEO and convenes policies and maintain the standards of the PwC network. Each PwC member approximately eight times per year, one Catarina Ericsson, Deputy CEO, firm engages in quality control and com- meeting being dedicated to strategic responsible for business development. planning issues. pliance monitoring activities, covering the provision of services, ethics and *) Peter Nyllinge also took over the business conduct, and the compliance Management bears the ultimate respon- position of CEO from 1 July 2013 and, at with specific, strict standards for inde- sibility for implementing the strategic di- this time, a new corporate management pendence monitoring and protection. rection and priorities, as determined by team also assumed their roles. the Board through the annual update of the business plan. In addition, manage- PwCIL is an English private company ment is responsible for the introduction limited by guarantee. PwCIL does not and development of policies and guideli- practice accountancy, provide services to nes for the operations, and for ensuring clients or do business with third parties. that the firm has adequate systems and PwCIL acts as a co-ordinating entity for procedures for internal controls. This PwC member firms in the PwC network. also includes the control and monitoring PwCIL develops and implements stan- of quality, as well as ensuring that these dards and policies and initiatives that systems are the subject of continuous create a common approach for member evaluations. firms. PwCIL focuses on key areas like strategy, brand and risk & quality, in- cluding compliance with independence processes. A member firm of PwCIL cannot act as an agent of PwCIL or any other member firm, and it is only liable for its own acts or omissions and not those of PwCIL or any other member firm. PwCIL has no right or ability to control any member firm’s exercise of professional judgment. 4 PwC’s Swedish operations Transparency report 12/13 Audit Quality Control 1. Leadership Responsibilities for 2. Ethical Requirements System Quality within the Firm The firm’s management is committed 2.1 Integrity and Objectivity to audit quality and has established a The reputation and success of the firm The following is a summary of the sys- culture embracing high standards in depend on the professionalism and tem of quality control that the firm has independence and professional ethics. integrity of all partners and staff. All adopted over its auditing practice. Management bears the overall respon- partners and staff are expected to sibility for ensuring that the system for uphold and comply with the standards Introduction quality control over its auditing practice developed by the PwC global network The firm’s responsibilities as regards its discussed in this document is effective and by our local firm. A Business Con- clients, applicable legislation and public on an ongoing basis. Risk assessments duct Leader/Ethics Officer has been ap- interests require that we are continuous- are carried out to address changes in pointed to promote local initiatives and ly expected to deliver high quality work external and internal circumstances. ongoing activities concerning our ethical which inspires confidence. Policies are updated and approved regu- “Code of Conduct”. Management is larly, as is the case with the tailoring of responsible for maintaining an internal The PwC Global Network has procedures procedures and controls. culture and a tone at the top which helps concerning audit and quality control to promote our Code of Conduct and the which are set out in a number of com- Leadership is also demonstrated by the manner in which it is to characterise our mon policies. The members of the global dedication of resources to quality mat- behaviour. Upon hiring or admittance, network use these policies and conduct ters. all staff and partners of the firm are Risk and Quality reviews. provided with a copy of the PwC Global • Business Unit Leaders and other Code of Conduct. Information regarding Our Swedish policies are based on global managers assume the operational the Code of Conduct is also published on policies, which have been prepared ba- responsibility for ensuring that our local intranet and Swedish website, sed on standards issued by the Interna- policies regarding risk and quality as well as the PwC Global website (www. tional Federation of Accountants (IFAC) matters are complied with in the pwc.com). Updates and reminders and other sources. Local policies have entities concerned. concerning the Code of Conduct are been prepared to address local profes- provided on an ongoing basis through sional standards and regulatory require- • A Risk and Quality Partner of the firm various messages from management and ments. bears the overall responsibility for risk are also included in the training of both management and quality control and new and experienced staff members.