Transparency Report 2020
EY Zimbabwe
Contents
Message from the Country Managing Partner and the EY Zimbabwe Assurance Leader ...... 3
About us ...... 5 Legal structure, ownership and governance ...... 5 Network arrangements ...... 6
Commitment to Sustainable Audit Quality ...... 8 Infrastructure supporting quality ...... 8 Instilled professional values ...... 9 Internal quality control system ...... 11 Client acceptance and continuance ...... 12 Performance of audits ...... 13 Review and consultation ...... 15 Rotation and long association ...... 16 Audit quality reviews ...... 16 External quality assurance review ...... 17 Compliance with legal requirements ...... 17
Independence practices ...... 19
Continuing education of audit professionals ...... 21
Revenue and remuneration ...... 22 Financial information ...... 22 Partner remuneration ...... 23
Appendix 1: List of PIE audit clients ...... 24 EY Zimbabwe PIE audit clients ...... 24
Appendix 2:...... 25
Optional: broader audit quality discussion ...... 27
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Message from the Country Managing
Partner and the EY Zimbabwe Assurance Leader Welcome to the Transparency Report 2020 of EY Ernst & Young Chartered Accountants Zimbabwe (EY Zimbabwe) . We believe that how we advance sustainable audit quality, manage risk and maintain our independence, as auditors should be transparent to our stakeholders. We value regular dialogue, and this report is one of the ways in which we update our stakeholders on what we are doing in each of these areas. Executing high-quality audits continues to be our top priority and is at the heart of our commitment to serve the public interest. It enables us to grow the global EY network successfully and responsibly, while achieving our purpose of building a better working world. Auditors play a vital role in the functioning of capital markets by promoting transparency and supporting investor confidence. Companies, regulators and other stakeholders count on us to deliver excellence in every engagement. We are focused on investing in tools to improve what we do, creating the highest- performing teams, and building trust and confidence through the audits we perform. EY Zimbabwe’s reputation is based on and grounded in providing high-quality professional audit services objectively and ethically to every company we audit. We embrace the transparency objectives of the European Union’s Regulation 537/2014 which requires Zimbabwe statutory auditors of public interest entities (PIEs) to publish annual transparency reports. The EY Zimbabwe Transparency Report 2020 complies with the Regulation and covers the ending 30 June 2020 and any more recent relevant events. In this report, you can learn more about our internal quality control system; how we instill professional values; how we perform an audit; our review and consultation processes; our approach to audit quality reviews; our independence practices; and the impact of COVID-19 on our operations. EY Zimbabwe is focused on enhancing audit quality and upholding our independence, informed by several factors, including external and internal inspection results. Continuous improvement of audit quality requires us to challenge approaches to audit execution, and we focus on this by evaluating inspection findings and taking responsive actions. The need for trust and confidence in financial reporting in our capital markets has never been greater, and auditors play an important role in this regard.
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At EY At EY Zimbabwe, we have taken initiatives to improve our audit quality. We are currently in the process of updating our control framework to align with International Standard on Quality Management. We also proactively engage with regulators to ensure compliance with applicable laws and regulations. We encourage all our stakeholders — including our clients and their investors, audit committee members and regulators — to continue to engage with us on our strategy as well as any of the matters covered in this report. Walter Mupanguri
David Gwande [Country Managing Partner]
[Country Assurance Leader [EY Zimbabwe]
[EY Zimbabwe]
EY’s purpose: building a better working world
EY is committed to doing its part in building a better working world. The insights and quality services delivered by EY people help build trust and confidence in business and the capital markets. EY auditors serve the public interest by delivering high-quality audits with independence, integrity, objectivity and professional skepticism. In so doing, the EY organization plays a critical role in building a better working world for EY people, clients and communities.
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About us
Legal structure, ownership and governance
In Zimbabwe, Ernst & Young Chartered Accountants is a partnership organized in Harare, Zimbabwe and is a member firm of Ernst & Young Global Limited, a UK company limited by guarantee (EYG). In this report, we refer to ourselves as “EYZimbabwe],” “we,” “us” or “our.” EY refers collectively to the global organization of the member firms of EYG.
EYG member firms are grouped into three geographic Areas: Americas; Asia-Pacific; and Europe, Middle East, India and Africa (EMEIA). The Areas comprise multiple Regions, which themselves consist of member firms. EY Zimbabwe is part of the EMEIA Area, which comprises EYG member firms in 97 countries in Europe, the Middle East, India and Africa. Within the EMEIA Area, there are 10 Regions. EY Zimbabwe is part of the Africa Region. Ernst & Young (EMEIA) Limited (EMEIA Limited), an English company limited by guarantee, is the principal coordinating entity for the EYG member firms in the EMEIA Area. EMEIA Limited facilitates the coordination of these firms and cooperation between them, but it does not control them. EMEIA Limited is a member firm of EYG, has no financial operations and does not provide any professional services. Each Region elects a Regional Partner Forum (RPF), whose representatives advise and act as a sounding board to Regional leadership. The partner elected as Presiding Partner of the RPF also serves as the Region’s representative on the Global Governance Council (see page 6).
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Network arrangements clients and others in each country, and be more responsive to local needs. EY is a global leader in assurance, tax, strategy, transaction and consulting services. Worldwide, over Global Governance Council 298,000 people in member firms in more than 150 The Global Governance Council (GGC) is the main countries share a commitment to building a better oversight body of EYG. It comprises one or more working world, united by shared values and an representatives from each Region, other member firm unwavering commitment to quality, integrity and partners as at-large representatives and up to six professional skepticism. In today’s global market, the independent non-executives (INEs). The Regional integrated EY approach is particularly important in the representatives, who otherwise do not hold senior delivery of high-quality multinational audits, which can management roles, are elected by their RPFs for a span nearly every country in the world. three-year term, with provision for one successive This integrated approach enables EY member firms to reappointment. The GGC advises EYG on policies, develop and draw upon the range and depth of strategies, and the public interest aspects of its experience required to perform such diverse and decision-making. The GGC approves, in some instances complex audits. upon the recommendation of the GE, certain matters that could affect EY. EYG coordinates the member firms and promotes cooperation among them. EYG does not provide Independent Non-Executives services, but its objectives include the promotion of exceptional high-quality client service by member Up to six Independent Non-Executives (INEs) are firms worldwide. Each member firm is a legally distinct appointed from outside EY. The INEs are senior leaders entity. Their obligations and responsibilities as from both the public and private sectors and reflect members of EYG are governed by the regulations of diverse geographic and professional backgrounds. EYG and various other agreements. They bring to the global organization, and the GGC,
The structure and principal bodies of the global the significant benefit of their varied perspectives and organization, described below, reflect the principle depth of knowledge. The INEs also form a majority of that EY, as a global organization, has a common the Public Interest Sub-Committee (PIC) of the GGC. shared strategy. The role of the PIC includes public interest aspects of decision-making, issues raised under whistle-blowing At the same time, the network operates on a Regional policies and procedures, and stakeholder dialogue and level within the Areas. This operating model allows for engagement in quality and risk management greater stakeholder focus in the Regions, permitting discussions. The INEs are nominated by a dedicated member firms to build stronger relationships with committee.
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Global Executive Global Practice Group The Global Executive (GE) brings together EY’s This group brings together the members of the GE, GE leadership functions, services and geographies. As of committees, Regional leaders and sector leaders. The 1 July 2020, it is chaired by the Chairman and CEO of Global Practice Group seeks to promote a common EYG, and includes its Global Managing Partners of understanding of EY’s strategic objectives and helps Client Service and Business Enablement; the Area drive consistency of execution across the organization. Managing Partners; the global functional leadership for Talent; the leaders of the global service lines — EYG member firms Assurance, Consulting (previously Advisory), Strategy Under the regulations of EYG, member firms commit and Transactions (previously Transaction Advisory themselves to pursue EY’s objectives, such as the Services) and Tax; and one EYG member firm partner provision of high-quality service worldwide. To that on rotation. end, the member firms undertake the implementation The GE also includes the Global Vice Chair of Markets, of global strategies and plans, and work to maintain the Global Vice Chair of Transformation, the Chief the prescribed scope of service capability. They are Client Technology Officer, the Chair of the Global required to comply with common standards, Accounts Committee, the Chair of the Emerging methodologies and policies, including those regarding Markets Committee, as well as a representative from audit methodology, quality and risk management, the Emerging Markets practices. independence, knowledge sharing, HR and technology. The GE and the GGC approve nominations for the Above all, EYG member firms commit to conducting Chairman and CEO of EYG and ratify appointments of their professional practices in accordance with the Global Managing Partners. The GE also approves applicable professional and ethical standards, and all appointments of Global Vice Chairs. The GGC ratifies applicable requirements of law. This commitment to the appointments of any Global Vice Chair who serves integrity and doing the right thing is underpinned by as a member of the GE. the EY Global Code of Conduct and EY values (see page 11). The GE’s responsibilities include the promotion of global objectives and the development, approval and, Besides adopting the regulations of EYG, member where relevant, implementation of: firms enter into several other agreements covering aspects of their membership in the EY organization, • Global strategies and plans such as the right and obligation to use the EY name, • Common standards, methodologies and policies to and knowledge sharing. be promoted within member firms • People initiatives, including criteria and processes Member firms are subject to reviews to evaluate for admission, evaluation, development, reward adherence to EYG requirements and policies governing and retirement of partners issues, such as independence, quality and risk • Quality improvement and protection programs management, audit methodology and HR. Member • Proposals regarding regulatory matters and public firms unable to meet quality commitments and other policy EYG membership requirements may be subject to • Policies and guidance relating to member firms’ termination from the EY organization. service of international clients, business development, markets and branding • EY’s development funds and investment priorities • EYG’s annual financial reports and budgets • GGC recommendations The GE also has the power to mediate and adjudicate disputes between member firms.
GE committees Established by the GE and bringing together representatives from across the organization, the GE committees are responsible for making recommendations to the GE. In addition to the Global Audit Committee, examples of other committees include Assurance, Consulting, Tax, Strategy and Transactions, Global Markets and Investments, Global Accounts, Emerging Markets, Talent and Risk Management.
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Commitment to Sustainable Audit Quality
This helps provide greater assurance as to the Infrastructure supporting objectivity of audit quality and consultation processes. The Global PPD also leads and oversees the Global quality Professional Practice group. This is a global network of technical subject-matter specialists in accounting and Quality in our service lines auditing standards, who consult on accounting, auditing and financial reporting matters; and perform NextWave is EY’s global strategy and ambition to various practice monitoring and risk management deliver long-term value to clients, people and society. activities. NextWave reconfirms EY’s purpose, ambition, and strategy. EY’s purpose of building a better working The Global PPD oversees the development of the EY world continues to inspire EY people to not only serve Global Audit Methodology (EY GAM) and related clients, but also to use our knowledge, skills and technologies so that they are consistent with relevant experiences to support the communities in which we professional standards and regulatory requirements. live and work. The insights and quality services we The Global Professional Practice group also oversees deliver help build trust and confidence in the capital the development of the guidance; training and markets and in economies around the world. monitoring programs; and processes used by member firm professionals to execute audits consistently and Delivering high-quality audits and continuously effectively. The Global, Area and Regional PPDs, improving what we do are fundamental to building a together with other professionals who work with them better working world. To do so, we recruit, develop and in each member firm, are knowledgeable about EY retain the right people; embrace innovation; people; clients; and processes; and they are readily encourage simplification; and monitor what we do accessible for consultation with audit engagement closely. Serving the public interest through the teams. delivery of high-quality audits consistently around the world is a top priority. Significant investments continue Additional resources often augment the Global to be made to deliver state-of-the-art tools and Professional Practice group, including networks of develop EY people. EY audit teams embrace a digital- professionals focused on: first approach and are supported by a more than • Internal-control reporting and related aspects of US$600m investment in new and emerging the EY audit methodology technologies. • Accounting, auditing and risk issues for specific EYG member firms and their service lines are industries and sectors accountable for delivering quality engagements. EY • Event-specific issues involving areas of civil and member firms’ service lines manage the overall political unrest; or sovereign debt and related process for quality reviews of completed engagements accounting, auditing, reporting and disclosure and input for the quality of in-process engagements, implications which helps achieve compliance with professional • General engagement matters and how to work standards and EY policies. effectively with audit committees
The Global Vice Chair of Assurance coordinates Risk Management member firms’ compliance with EY policies and procedures for services provided by Assurance. Risk Management (RM) oversees organization-wide activities designed to help EY people meet global and Professional Practice local compliance responsibilities and support client- facing teams in delivering quality and exceptional The Global Vice Chair of Professional Practice, referred client service. Responsibility for high-quality service to as the Global Professional Practice Director (PPD), is and ownership of the risks associated with quality is overseen by the Global Vice Chair of Assurance and placed with the member firms and their service lines. works to establish global audit quality control policies and procedures. Each of the Area PPDs is overseen by the Global PPD and the related Area Assurance Leader.
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Among other things, the Global RM Leader helps Cybersecurity oversee the identification and management of these Managing the risk of major and complex cyberattacks risks, as well as other risks across the organization as is a part of doing business for all organizations. While part of the broader Enterprise Risk Management no systems are immune from the threat of framework. cyberattacks, EY Zimbabwe is vigilant in the steps it Member firm partners are appointed to lead risk takes to secure and protect client data. The EY management initiatives (supported by other staff and approach to cybersecurity is proactive and includes professionals), including coordinating with the service the implementation of technologies and processes lines on such matters. The Global RM Leader is necessary to manage and minimize cybersecurity risks responsible for establishing globally consistent risk globally. EY information security and data privacy management execution priorities and enterprise-wide programs, consistent with industry practices and risk management. applicable legal requirements, are designed to protect against unauthorized access to systems and data. These priorities cascade to member firms through an There is a dedicated team of cybersecurity specialists Enterprise Risk Management (ERM) program. who constantly monitor and defend EY systems. There were additional complexities in 2020 as the Beyond technical and process controls, all EY people world deals with the COVID-19 pandemic. This are required to affirm in writing their understanding of required a coordinated response across EY via the principles contained in the EY Global Code of activation of the Global Crisis Management Program Conduct and their commitment to abide by them. (GCMP). Every aspect and geography of the business There are also required security awareness learning was affected. The GCMP, led by the Global RM Leader, activities. Various policies outline the due care that involved EY’s leadership on a frequent and consistent must be taken with technology and data, including, but basis. The GCMP is an extensive program that is not limited to, the Global Information Security Policy, reviewed regularly. It includes plans that cascade from and a global policy on the Acceptable Use of the Global and Area levels. Technology. EY cybersecurity policies and processes recognize the importance of timely communication. EY Global Confidentiality Policy people receive regular and periodic communications Protecting confidential information is ingrained in the reminding them of their responsibilities from these everyday activities of EYG member firms. Respect for policies and of general security awareness practice. intellectual capital and all other sensitive and restricted information is required by the EY Global Components of our audit quality control Code of Conduct, which provides a clear set of program principles to guide the behaviors expected of all those In the following sections, we describe the principal who work with EY. The Global Confidentiality Policy components of the audit quality control program, further details this approach to protect information which EY Zimbabwe follows: and reflect the ever-changing restrictions on the use of data. This policy provides added clarity for those • Instilled professional values who work with EY and forms the fundamental broader • Internal quality control system guidance that includes key policies on conflicts of • Client acceptance and continuance interest, personal data privacy and records retention. • Performance of audits Other guidance includes: • Review and consultation • Social media guidance • Rotation and long association • Information-handling requirements • Audit quality reviews In addition, the global policy on Reporting Fraud, • External quality assurance reviews Illegal Acts and Other Non-compliance with Laws, • Compliance with legal requirements Regulations and EY’s Global Code of Conduct requires EY professionals to speak up on observing behavior that is believed to be a violation of a law or regulation, Instilled professional values applicable standard or EY’s Global Code of Conduct. This includes the unauthorized or improper disclosure Sustainable Audit Quality of confidential information. Quality is the foundation of our work and central to Furthermore, the global policy on Personal Data EY’s responsibility to provide confidence to the capital Protection supports and builds upon provisions within markets. This is reflected in the Sustainable Audit the EY Global Code of Conduct regarding respecting Quality (SAQ) program, which continues to be the and protecting personal information, in accordance highest priority for EY member firms’ Assurance with local law and professional standards, which has practices. been updated consistent with the EU General Data Protection Regulation (GDPR).
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SAQ establishes a strong governance structure that The SAQ infrastructure demonstrates that audit enables each member firm to provide high-quality quality is the single most important factor in our audits. It is implemented locally; and coordinated and decision-making and the key measure on which our overseen globally. The word “sustainable” in SAQ is professional reputation stands. used to demonstrate that this is not a one-off, short- term initiative, but an ongoing process of Tone at the top improvement. EY Zimbabwe’s leadership is responsible for setting the There are six SAQ pillars: tone at the top; exceptional right tone at the top and demonstrating EY’s talent; simplification and innovation; audit technology commitment to building a better working world and digital; enablement and quality support; and through behavior and actions. While the tone at the accountability. The pillars are supported by a top is vital, our people also understand that quality foundation of serving the public interest. and professional responsibility start with them and that within their teams and communities, they are Significant progress has been made through SAQ. EY leaders too. Our shared values, which inspire our member firms’ internal and external inspection people and guide them to do the right thing, and our findings globally are improving, and there is greater commitment to quality are embedded in who we are consistency in execution. EY has deployed world-class and in everything we do. technological tools that enhance the quality and value of EY audits, including the EY Canvas online audit The EY approach to business ethics and integrity is platform, the EY Helix analytics platform and the EY contained in the EY Global Code of Conduct and other Atlas research platform. policies and is embedded in the EY culture of consultation, training programs and internal A key feature of EY Canvas is “My EY” (formerly known communications. Senior management regularly as the EY Canvas Client Portal), which enables clients reinforces the importance of performing quality work, to communicate with audit teams and confirm what complying with professional standards, adhering to our information auditors have requested and whether that policies, and leading by example. In addition, EY information has been provided. EY Canvas also assesses the quality of professional services provided facilitates the use of the “Milestones” project as a key metric in evaluating and rewarding EY management functionality, which helps audit teams professionals. stay on pace with their audit execution and drive executive involvement. Finally, project management The EY culture strongly supports collaboration and enhancements within Canvas empower audit teams to places special emphasis on the importance of be focused on audit execution. consultation in dealing with complex or subjective accounting, auditing, reporting, regulatory and When Milestones, My EY, and the project management independence matters. We believe it is important to tools and enablement are used, engagement teams determine that engagement teams and clients can more effectively execute audit tasks with correctly follow consultation advice, and we emphasize appropriate skepticism and curiosity. As a result, audit this when necessary. quality is enhanced.
Other SAQ initiatives include: a new approach to The consistent stance of EY Zimbabwe has been pictorially depict a company’s internal controls and that no client is more important than our processes; the Personal Workload Tool, which reviews professional reputation — the reputation of EY personal responsibilities and assesses whether there is Zimbabwe and the reputation of each of our sufficient time to execute high-quality audits; Purpose- professionals. Led Outcome Thinking (PLOT), a framework that focuses on the behaviors that drive high-quality audits; Code of Conduct and Key Findings Review, which helps coach EY teams. We promote a culture of integrity among our There is also a network of Quality Enablement Leaders professionals. The EY Global Code of Conduct provides (QELs), an overall Global Audit Quality Committee and a clear set of principles that guide our actions and our a Culture and Behaviors Taskforce. They help us in business conduct and are to be followed by all EY executing and reviewing root cause analysis and personnel. The EY Global Code of Conduct is divided understanding the impact of our initiatives in driving into five categories: quality outcomes, better behaviors and a continuous • Working with one another improvement mindset. • Working with clients and others Audit quality is something that every team member • Acting with professional integrity must understand and be committed to implementing • Maintaining our objectivity and independence locally. SAQ is essential to all our goals and ambitions, • Protecting data, information and intellectual and each Regional and Area leader has oversight of capital the efforts to achieve those goals.
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Through our procedures to monitor compliance with We recognize that in today’s environment — the EY Global Code of Conduct and through frequent characterized by continuing globalization, the rapid communications, we strive to create an environment movement of capital and the impact of technology that encourages all personnel to act responsibly, changes — the quality of our audit services has never including reporting misconduct without fear of been more important. As part of NextWave, we retaliation. continue to invest heavily in developing and maintaining our audit methodology, tools and other The EY Ethics Hotline provides EY people, clients and resources needed to support quality service. others outside of the organization with a means to confidentially report activity that may involve While the market and stakeholders continue to demand unethical or improper behavior, and that may be in high-quality audits, they also demand an increasingly violation of professional standards or otherwise effective and efficient delivery of audit services. In inconsistent with the EY shared values or Global Code addition to the investments mentioned, EY continues of Conduct. Globally the hotline is operated by an to seek ways to improve the effectiveness and external organization that provides confidential and, if efficiency of its audit methodology and processes, desired, anonymous hotline reporting. while improving audit quality. When a report comes into the EY Ethics Hotline, either We work to understand where our audit quality may by phone or internet, it receives prompt attention. not be up to our own expectations and those of Depending on the content of the report, appropriate stakeholders, including independent audit regulators. individuals from Risk Management, Talent, Legal or We seek to learn from external and internal inspection other functions are involved in addressing the report. activities and to identify the root causes of adverse The same procedures are followed for matters that are quality occurrences to enable us continually to reported outside of the EY Ethics Hotline. improve audit quality. We believe that taking effective and appropriate actions to improve quality is important. Our values: who we are Effectiveness of the quality control system People who demonstrate integrity, EY has designed and implemented a comprehensive respect, teaming and inclusiveness set of global audit quality control policies and practices. These policies and practices meet the requirements of the International Standards on Quality People with energy, enthusiasm and Control issued by the International Auditing and the courage to lead Assurance Standards Board (IAASB). EY Zimbabwe has adopted these global policies and procedures and has People who build relationships based supplemented them as necessary to comply with local on doing the right thing laws and professional guidelines, and to address specific business needs. We also execute the EY Audit Quality Review (AQR) Internal quality control program to evaluate whether our system of audit system quality control has operated effectively to provide reasonable assurance that EY Zimbabwe and our people comply with applicable professional standards, Structure internal policies and regulatory requirements. EY Zimbabwe’s reputation for providing high-quality The results of the AQR program and external professional audit services independently, objectively inspections are evaluated and communicated within EY and ethically is fundamental to our success as Zimbabwe to provide the basis for continual independent auditors. We continue to invest in improvement in audit quality, consistent with the initiatives to promote enhanced objectivity, highest standards in the profession. independence and professional skepticism. These are fundamental attributes of a high-quality audit. The Global Executive has responsibility for the implementation of quality improvement. As such, it At EY Zimbabwe, our role as auditors is to provide reviews the results of the internal AQR program and assurance on the fair presentation of the financial external audit firm regulatory reviews, as well as any statements of the companies we audit. We bring key actions designed to address areas for together qualified teams to provide audit services, improvement. drawing on our broad experience across industry sectors and services. We continually strive to improve The recent results of such monitoring, together with our quality and risk management processes so that the feedback from independent audit regulators, provide quality of our service is at a consistently high level. EY Zimbabwe with a basis to conclude that our internal
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control systems are designed appropriately and are We believe that the requirements within ISQM 1 can operating effectively. help to improve quality at the firm and engagement level as an effective system of quality management is Update to the control framework – ISQM 1 foundational to achieving consistent engagement quality. In September 2020, the IAASB approved a quality management standard that includes significant Client acceptance and changes to the way professional accountancy firms manage quality. The International Standard on Quality continuance Management 1 (ISQM 1) will replace the current International Standard on Quality Control 1 (ISQC 1) EY policy and take a more proactive and risk-based approach. ISQM 1 will be effective as of December 2022 but The EY global policy on Client and Engagement remains subject to final approval by the Public Interest Acceptance sets out principles for member firms to Oversight Board, in accordance with due process. determine whether to accept a new client or a new engagement or to continue with an existing client or ISQM 1 will require firms to design, implement, engagement. These principles are fundamental to monitor and assess the overall system of quality maintaining quality, managing risk, protecting EY management (SQM) that provides reasonable people and meeting regulatory requirements. The assurance a firm will meet its quality objectives. objectives of the policy are to: The standard includes more robust requirements for • Establish a rigorous process for evaluating risk the governance, leadership and culture of professional and making decisions to accept or continue clients accountancy firms, and a risk assessment process that or engagements evaluates risks to achieving quality objectives and • Meet applicable independence requirements identification of controls that address those risks. It • Identify and deal appropriately with any conflicts also requires more extensive monitoring of the SQM to of interest evaluate the effectiveness and identify deficiencies • Identify and decline clients or engagements that that require corrective actions. pose excessive risk Many steps have already been taken to improve the • Require consultation with designated SQM. An effective SQM is the foundation for EY’s professionals to identify additional risk management procedures for specific high-risk quality initiatives and is key to quality and operating factors effectiveness. The EY approach is to implement an SQM that is consistently applied across the entire • Comply with legal, regulatory and professional requirements network of member firms. This is especially important in a global economy where many audits involve the use In addition, the EY global policy on Conflicts of Interest of other EY member firms. A globally consistent SQM defines global standards for addressing categories of helps ensure engagement quality and consistent potential conflicts of interest and a process for execution. identifying them. It also includes provisions for managing potential conflicts of interest as quickly and While the standard is effective as of December 2022, efficiently as possible using appropriate safeguards. EY Zimbabwe has commenced work to implement the Such safeguards may include obtaining client consent new standard alongside EY’s System of Quality to act for another party where a conflict of interest Management transformation program. Our initial steps may exist, establishing separate engagement teams to have included: act for two or more parties, implementing “Chinese • Identifying the functions and services lines that Walls” between engagement teams or declining an fall within the scope of ISQM 1 engagement to avoid an identified conflict. • Establishing a program governance structure to The EY global policy on Conflicts of Interest and manage the design and implementation of a associated guidance consider the increasing system of quality management that complies with ISQM 1 with representatives from the various complexity of engagements and client relationships, functions and service lines and the need for speed and accuracy in responding to clients. They also align with the latest International • Identifying and assessing quality risks and documenting controls in accordance with the Ethics Standards Board for Accountants (IESBA) network developed approach standards. • Identifying network resources and requirements and how they are implemented or used by the Putting policy into practice country in their SQM We use the EY Process for Acceptance of Clients and • Identifying enhancements to the control Engagements (PACE), an intranet-based system, for framework and challenging current controls for efficiently coordinating client and engagement compliance with the new standard acceptance and continuance activities in line with
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global, service line and member firm policies. PACE reconsidering and modifying them as appropriate; and takes users through the acceptance and continuance using these assessments to determine the nature, requirements, and identifies the policies and timing and extent of audit procedures are fundamental references to professional standards needed to assess to EY GAM. The methodology also emphasizes both business opportunities and associated risks. applying appropriate professional skepticism in the execution of audit procedures. EY GAM is based on As part of this process, we carefully consider the risk International Standards on Auditing (ISAs) and is characteristics of a prospective client or engagement supplemented in Zimbabwe to comply with the local and the results of several due diligence procedures. auditing standards and regulatory or statutory Before we take on a new engagement or client, we requirements. determine whether we can commit sufficient resources to deliver quality service, especially in highly technical Using an online tool, EY Atlas, an EY auditor is areas, and if the services the client wants are presented with a version of EY GAM organized by topic appropriate for us to provide. The approval process is and designed to focus the audit strategy on the rigorous, and no new audit engagement may be financial statement risks, and the design and execution accepted without the approval of Regional or of the appropriate audit response to those risks. EY local PPD. GAM consists of two key components: requirements and guidance; and supporting forms and examples. In the EY annual client and engagement continuance The requirements and guidance reflect both auditing process, we review our service and ability to continue standards and EY policies. The forms and examples to provide a quality service and confirm that clients we include leading practice illustrations and assist in serve share EY Zimbabwe’s commitment to quality and performing and documenting audit procedures. transparency in financial reporting. The partner in charge of each audit, together with our Assurance EY GAM can be “profiled” or tailored to present the leadership, annually reviews our relationship with the relevant requirements and guidance, depending on the audit client to determine whether continuance is nature of the entity being audited — e.g., there are appropriate. profiles for listed entities and for those considered non-complex entities. As a result of this review, certain audit engagements are identified as requiring additional oversight Following a successful pilot in 2019, EY GAM was procedures during the audit (close monitoring), and updated to include the profession’s first data-first some audit clients are discontinued. As with the client approach to auditing, which is called Digital GAM. acceptance process, our Regional PPD is involved in Utilizing the suite of EY Helix analyzers, the flow of the client continuance process and must agree with audit procedures, supplemented with new the continuance decisions. requirements and guidance, enhances the way EY member firms perform audits. The EY audit approach Decisions about acceptance or continuance of clients combines the vast amounts of financial and non- and engagements consider the engagement team’s financial data available from an entity’s systems with assessment of whether the company’s management broad sources of knowledge to enable EY auditors to may pressure us to accept inappropriate accounting, obtain sufficient and appropriate audit evidence. auditing and reporting conclusions to undermine Through visualizing whole populations of data and quality. Considerations and conclusions on the applying professional skepticism, EY auditors can integrity of management are also essential to provide an additional challenge to management’s acceptance and continuance decisions. assertions to drive high audit quality. Performance of audits Other enhancements have been made to address new standards; emerging auditing issues and matters; There has been significant investment by EY in implementation experiences; and external and internal improving audit methodologies and tools, with the goal inspection results. Recently, EY GAM was updated for of performing the highest-quality audits in the the requirements of ISA 540 (Revised), Auditing profession. This investment reflects EY’s commitment Accounting Estimates and Related Disclosures to building trust and confidence in the capital markets (effective for audits of periods beginning on or after and in economies the world over. 15 December 2019) and a suite of enablement to implement those requirements was issued. Audit methodology In addition, current and emerging developments are EY GAM provides a global framework for delivering monitored, and timely audit planning and execution high-quality audit services through the consistent communications are issued that emphasize areas application of thought processes, judgments and noted during inspections as well as other key topics of procedures in all audit engagements, regardless of interest to local audit regulators and the International size. EY GAM also requires compliance with relevant Forum of Independent Audit Regulators (IFIAR). ethical requirements, including independence from the Specifically, with respect to the impact that COVID-19 entity we audit. Making risk assessments; is having on the global economy, guidance has been
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issued to address the accounting and financial through the analysis of larger populations of audit- reporting concerns that the entities EY member firms relevant data; identifying unseen patterns and trends audit are facing, as well as audit considerations when in that data; and helping to direct our audit efforts. performing audits in the current environment. The use of data analytics also allows us to obtain better perspectives; richer insights; and a deeper Technology understanding of transactions and areas of risk. Our audit engagement teams use technology to assist EY is deploying data analyzers to analyze the business in executing and documenting the work performed in operating cycles of the companies that we audit, accordance with EY GAM. supported by analytics-based audit programs to aid the application of these data analyzers. EY Canvas, the global EY audit platform, lies at the heart of the audit and enables us to provide a high- Using the EY Helix library of data analyzers, EY audit quality audit. EY Canvas is built using state-of-the-art engagement teams can enhance their audit risk technology for web applications. This allows us to assessment, enabling the audit of higher-risk provide data security and to evolve our software to transactions, and assisting EY people in asking better respond to changes in the accounting profession and questions about audit findings and evaluating the regulatory environment. outcomes. Through the use of profile questions, audit EY Atlas is a global technology platform that enables engagements in EY Canvas are automatically EY auditors to access the latest accounting and configured with information relevant to an entity’s auditing content, including external standards, EY listing requirements and industry. This helps to keep interpretations and thought leadership. our audit plans customized and up-to-date, and provides direct linkage to our audit guidance, Formation of audit engagement teams professional standards and documentation templates. EY Zimbabwe’s policies require an annual review of EY Canvas is built with a user interface that allows the partner assignments by our Assurance leadership and team to visualize risks and their relationship to the Regional or Country PPD. This is carried out, among planned response and work performed in key areas. It other things, to make sure that the professionals also enables a linkage for group audit teams to leading audits of listed entities and other public- communicate inter-office risks and instructions so that interest entities possess the appropriate competencies the primary audit team can direct execution and (e.g., the knowledge, skills and abilities) to fulfill their monitor performance of the group audit. engagement responsibilities and are in compliance EY Canvas includes the My EY client portal to assist with applicable auditor rotation regulations. teams in communicating with clients and streamlining The assignment of professionals to an audit their client requests. Mobile applications are engagement is also made under the direction of our integrated with EY Canvas to help our people in their Assurance leadership. Factors considered when audit work — e.g., in monitoring the status of the audit, assigning people to audit teams include engagement capturing audit evidence securely and performing size and complexity; specialized industry knowledge inventory observations. and experience; timing of work; continuity; and Audit engagement teams use other applications, data opportunities for on-the-job training. For more analyzers and forms during various phases of an audit complex engagements, consideration is given to to assist in executing procedures, making and whether specialized or additional expertise is documenting audit conclusions and performing needed to supplement or enhance the audit analysis. This includes EY Smart Automation, a engagement team. collection of applications that are being developed and In many situations, internal specialists are assigned as deployed globally through EY Canvas to digitally part of the audit engagement team to assist in enable EY audit professionals in executing audit performing audit procedures and obtaining procedures and processes. appropriate audit evidence. These professionals are used in situations requiring special skills or knowledge, such as tax, forensics, information systems, asset Digital GAM and data analytics valuation and actuarial analysis. At EY, we are making data analysis integral to our audits. Our use of data and analysis is not about Fraud additive procedures or visualizations. It is about taking Part of the EY commitment to quality is a policy of large populations of company data and applying our continuous improvement, which has resulted in globally consistent technology (EY Helix) and innovations to risk and audit procedures regarding methodology (EY GAM) to audit that data. fraud. These innovations include: EY Helix is a library of data analyzers for use in audits. These data analyzers are transforming the audit
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• Leveraging the power of advanced technology culture of consultation has become even more through: important to help EY member firms reach the • Mandating the use of data analytics for fraud appropriate conclusions for entities that they audit on testing a timely basis. Consultation requirements and related • Enhancing risk assessments and audit policies are designed to involve the right resources so scoping by using more external data and that audit teams reach appropriate conclusions. information, such as social media
• Using electronic confirmations for audit evidence wherever possible, moving in time The EY culture of consultation enables to matching the audited company’s records of engagement teams to deliver seamless, banking transactions with those provided by consistent and high-quality services that the bank meet the needs of audited entities, their • Mandating annual forensics training for all audit governance bodies and all stakeholders professionals
Review and consultation For complex and sensitive matters, there is a formal process requiring consultation outside of the audit engagement team with other personnel who have Reviews of audit work more experience or specialized knowledge, primarily EY policies describe the requirements for timely and Professional Practice and Independence personnel. In direct senior professional participation, as well as the the interests of objectivity and professional skepticism, level of review required for the work performed. EY policies require members of Professional Practice, Supervisory members of an audit engagement team Independence and certain others to withdraw from a perform a detailed review of the audit documentation consultation if they currently serve, or have recently for technical accuracy and completeness. Senior audit served, the client to which the consultation relates. In executives and engagement partners perform a this circumstance, other appropriately qualified second-level review to determine the adequacy of the individuals would be assigned. audit work as a whole and the related accounting and EY policies also require that all consultations are financial statement presentation. Where appropriate, documented, including written concurrence from the and based on risk, a tax professional reviews the person or persons consulted, to demonstrate their significant tax and other relevant working papers. For understanding of the matter and its resolution. listed and certain other companies, an engagement quality reviewer (described below) reviews important Engagement quality reviews areas of accounting, financial reporting and audit execution, as well as the financial statements of the Engagement quality reviews are performed by audit company we audit and our auditor’s report. partners in compliance with professional standards for audits of all listed companies, certain public-interest The nature, timing and extent of the reviews of audit entities and those considered to need close work depend on many factors, including: monitoring. Engagement quality reviewers are • The risk, materiality, subjectivity and complexity experienced professionals with significant subject of the subject matter matter knowledge. They are independent of the • The ability and experience of the audit team engagement team and provide an objective evaluation members preparing the audit documentation of the significant judgments the engagement team • The level of the reviewer’s direct participation in made, and the conclusions reached in formulating the the audit work auditor’s report. The performance of an engagement • The extent of consultation employed quality review, however, does not reduce the responsibilities of the partner in charge of the Our policies also describe the roles and responsibilities engagement for the engagement and its performance. of each audit engagement team member for In no circumstances may the responsibility of the managing, directing and supervising the audit, as well engagement quality reviewer be delegated to as the requirements for documenting their work and another individual. conclusions. The engagement quality review spans the entire Consultation requirements engagement cycle, including planning, risk assessment, audit strategy and execution. Policies and EY consultation policies are built upon a culture of procedures for the performance and documentation of collaboration, whereby audit professionals are engagement quality reviews provide specific guidelines encouraged to share perspectives on complex on the nature; timing and extent of the procedures to accounting, auditing and reporting issues. As the be performed; and the required documentation environment in which EY member firms work has evidencing their completion. In all circumstances, the become more complex and globally connected, the EY
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engagement quality review is completed before the listed company), key audit partners may remain in date of the auditor’s report. place for an additional two years before rotating off the team if they have served the company for six or The Regional AMP (or Regional Audit Leader) and more years prior to the listing. Regional or cluster PPD approve all engagement quality review assignments. Upon completing the maximum service period for rotation, a key audit partner may not lead or Audit engagement team resolution process for coordinate professional services to the PIE audit client differences of professional opinion until after completing a cooling-off period. This period is five years for a lead audit engagement partner, EY has a collaborative culture that encourages and three years for an engagement quality reviewer and expects people to speak up, without fear of reprisal, if two years for other partners subject to rotation. a difference of professional opinion arises or if they are uncomfortable about a matter relating to a client Where the required cooling-off period for the lead engagement. Policies and procedures are designed to audit engagement partner established by the local empower members of an audit engagement team to legislative body or regulator is less than five years, the raise any disagreements relating to significant higher of that cooling-off period or three years may be accounting, auditing or reporting matters. substituted for the otherwise required five-year cooling off period. This jurisdictional exception for These policies are made clear to people as they join the lead audit engagement partner may only be EY, and we continue to promote a culture that applied for audit periods beginning prior to 15 reinforces a person’s responsibility and authority to December 2023. make their own views heard and seek out the views of others. In addition to the audit partner rotation requirements applicable to PIE audit clients, EY has established a Differences of professional opinion that arise during an long association safeguards framework that, audit are generally resolved at the audit engagement consistent with the requirements of the IESBA Code team level. However, if any person involved in the and includes consideration of the threats to discussion of an issue is not satisfied with the decision, independence created by the involvement of they refer it to the next level of authority until an professionals over a long period of time on an audit agreement is reached or a final decision is made. and a safeguards framework to address such threats. Furthermore, if the engagement quality reviewer We employ tools to effectively monitor compliance makes recommendations that the engagement partner with internal rotation and requirements for audit does not accept or the matter is not resolved to the partners and other professionals who have had a long reviewer’s satisfaction, the auditor’s report is not association with the audit client. There is also a issued until the matter is resolved. Differences of process for rotation planning and decision-making that professional opinion that are resolved through involves consultation with, and approvals by, our consultation with Professional Practice are Professional Practice and Independence professionals . appropriately documented. External rotation Rotation and long association For public interest entities, we comply with the EY supports mandatory audit partner rotation to help external rotation requirements of Art. 17 (1) of the EU reinforce auditor independence. EY Zimbabwe Audit Regulation. complies with the audit partner rotation requirements of the IESBA Code as well as the U.S. Securities and Exchange Commission (SEC), where required. EY Zimbabwe supports audit partner rotation because it Audit quality reviews provides a fresh perspective and promotes The EY Global AQR program is the cornerstone of the independence from company management, while EY process to monitor audit quality. EY Zimbabwe retaining expertise and knowledge of the business. executes the Global AQR program, reports results and Audit partner rotation, combined with independence develops responsive action plans. The primary goal of requirements, enhanced systems of internal quality the program is to determine whether systems of controls and independent audit oversight, helps quality controls, including those of EY Zimbabwe, are strengthen independence and objectivity, and are appropriately designed and followed in the execution important safeguards of audit quality. of audit engagements to provide reasonable assurance For PIEs, the EY Global Independence Policy requires of compliance with policies and procedures; the lead engagement partner, the engagement quality professional standards; and regulatory requirements. reviewer and other audit partners who make key The Global AQR program complies with requirements decisions or judgments on matters significant to the and guidelines in the International Standard on Quality audit (together, the “key audit partners”) to be rotated Control (ISQC) 1, as amended, and is supplemented after seven years. For a new PIE (including a newly
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where necessary to comply with Zimbabwe actions. Measures to resolve audit quality matters professional standards and regulatory requirements. It noted from the Global AQR program, regulatory also aids EY Zimbabwe’s continual efforts to identify inspections and peer reviews are addressed by areas where we can improve our performance or Assurance leadership and our PPD. These programs enhance our policies provide important practice monitoring feedback for and procedures. our continuing quality improvement efforts. Executed annually, the program is coordinated and External quality assurance monitored by representatives of the Global PPD network, with oversight by Global Assurance review leadership. EY Zimbabwe’s EY Zimbabwe’s audit practice is The engagements reviewed each year are selected on subject to infrequent inspection by the Public a risk-based approach, emphasizing audit Accountants and Auditors Board (PAAB). engagements that are large, complex or of significant public interest, including elements of unpredictability. The last quality assurance inspection by PAAB took The Global AQR program includes detailed risk-focused place in November 2016. The final report on the file reviews covering a large sample of listed and non- inspection was issued 30 November 2016 listed audit engagements, and public interest entities We respect and benefit from the PAAB inspection and non-public interest entities, to measure process. We thoroughly evaluate the points raised compliance with internal policies and procedures; EY during the inspection in order to identify areas where GAM requirements; and relevant local professional we can improve audit quality. Engagements with standards and regulatory requirements. It also significant findings are subject to the Global Root includes reviews of a sample of non-audit assurance Cause Process. Together with the AQR process, engagements performed by audit engagement teams. external inspections provide valuable insight into the These measure compliance with the relevant quality of EY audits. The insights enable us to professional standards, and internal policies and effectively execute high-quality audits. procedures that should be applied in executing non- audit assurance services. In addition, practice-level reviews are performed to assess compliance with quality control policies and procedures in the Compliance with legal functional areas set out in ISQC 1. requirements The Global AQR program complements external The EY Global Code of Conduct provides clear practice monitoring and inspection activities, such as guidance about EY actions and business conduct. EY inspection programs executed by audit regulators and Zimbabwe complies with applicable laws and external peer reviews. It also informs us of our regulations, and EY’s values underpin our commitment compliance with regulatory requirements, professional to doing the right thing. This important commitment is standards, and policies and procedures. supported by a number of policies and procedures, AQR reviewers and team leaders are selected for their explained in the paragraphs below. skills and professional competence in accounting and auditing, as well as their industry specialization; they Anti-bribery have often participated in the Global AQR program for a number of years and are highly skilled in the The EY Global Anti-bribery Policy provides EY people execution of the program. Team leaders and reviewers with direction on certain unethical and illegal are independent of the engagements and teams they activities. It emphasizes the obligation to comply with are reviewing and are normally assigned to inspections anti-bribery laws and provides a definition of what outside of their home location. constitutes bribery. It also identifies reporting responsibilities when bribery is discovered. In The COVID-19 pandemic presented a particular recognition of the growing global impact of bribery challenge to the global AQR program in 2020 as a and corruption, efforts have been increased to embed result of restrictions on travel and face-to-face anti-bribery measures across EY. interaction. [Utilizing EY Canvas and other collaboration tools the program was effectively Insider trading completed in EY Zimbabwe The EY Global Insider Trading Policy reaffirms the The results of the Global AQR program, external obligation of EY people not to trade in securities when practice monitoring and inspection activities are in possession of insider information, provides detail on evaluated and communicated to improve quality. Any what constitutes insider information, and identifies quality improvement plans describe the follow-up with whom EY people should consult if they have actions to be taken; the people responsible; the questions regarding their responsibilities. timetable and deadlines; and sign-off on completed
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Trade sanctions It is important that we are aware of the ever-changing situation with respect to international trade sanctions. EY monitors sanctions issued in multiple geographies and provides guidance to EY people on impacted activities.
Data privacy The EY Global Personal Data Privacy Policy, revised and reissued in 2018, sets out the principles to be applied to the collection, use and protection of personal data, including that relating to current, past and prospective personnel, clients, suppliers and business associates. This policy is consistent with the strict requirements of the European Union’s GDPR, and other applicable laws and regulations concerning data protection and privacy. EY also has Binding Corporate Rules approved by EU regulators in place to facilitate the movement of personal data within the EY network. .
Document retention EY Record Retention global and related local policies apply to all engagements and personnel. These policies address document preservation whenever any person becomes aware of any actual or reasonably anticipated claim, litigation, investigation, subpoena or other government proceeding involving us or one of our clients that may relate to our work. It also addresses Zimbabwe legal requirements applicable to the creation and maintenance of working papers relevant to the work performed.
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Independence practices
The EY Global Independence Policy requires EY that indicate the independence rules that apply to Zimbabwe and our people to comply with the each entity, helping our people determine the type of independence standards applicable to specific services that can be provided or other interests or engagements, e.g., the IESBA Code of Ethics and the relationships that can be entered into. Independence Policy. Global Monitoring System (GMS) We consider and evaluate independence with regard to various aspects, including our financial relationships The GMS is another important global tool that assists and those of our people; employment relationships; in identifying proscribed securities and other business relationships; the permissibility of services impermissible financial interests. Professionals ranked we provide to audit clients; applicable firm and partner as manager and above are required to enter details rotation requirements; fee arrangements; audit about all securities they hold, or those held by their committee pre-approval, where applicable; and partner immediate family, into the GMS. When a proscribed remuneration and compensation. security is entered or if a security they hold becomes proscribed, professionals receive a notice and are Failure to comply with applicable independence required to dispose of the security. Identified requirements will factor into decisions relating exceptions are reported through the Global to a person’s promotion and compensation, and Independence Incident Reporting System (GIIRS) for may lead to other disciplinary measures, regulatory matters. including separation from EY Zimbabwe. GMS also facilitates annual and quarterly confirmation of compliance with independence policies, as described below. EY Zimbabwe has implemented EY’s global applications, tools and processes to support us, our Independence compliance professionals and other employees in complying with independence policies. EY has established several processes and programs aimed at monitoring the compliance with EY Global Independence Policy independence requirements of EY member firms and their people. These include the following activities, The EY Global Independence Policy contains the programs and processes. independence requirements for member firms, professionals and other personnel. It is a robust policy Independence confirmations predicated on the IESBA Code and supplemented by more stringent requirements in jurisdictions where Annually, EY Zimbabwe is included in an Area-wide prescribed by the local legislative body, regulator or process to confirm compliance with the EY Global standard-setting body. The policy also contains Independence Policy and process requirements, and to guidance designed to facilitate an understanding and report identified exceptions, if any. the application of the independence rules. The EY All EY professionals, and certain others, based on their Global Independence Policy is readily accessible and role or function, are required to confirm compliance easily searchable on the EY intranet. with independence policies and procedures at least once a year. All partners are required to confirm Global Independence System (GIS) compliance quarterly. The GIS is an intranet-based tool that helps EY professionals identify the entities from which Independence compliance reviews independence is required and the independence EY conducts internal procedures to assess member restrictions that apply. Most often, these are listed firm compliance with independence matters. These audit clients and their affiliates, but they can also be reviews include aspects of compliance related to non other types of attest or assurance clients. The tool audit services, business relationships with the includes family-tree data relating to affiliates of listed companies we audit and financial relationships of audit clients and is updated by client-serving member firms. engagement teams. The entity data includes notations
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Personal independence compliance testing Service Offering Reference Tool (SORT) Each year, the EY Global Independence team We assess and monitor our portfolio of services on an establishes a program for testing compliance with ongoing basis to confirm that they are permitted by personal independence confirmation requirements and professional standards, laws and regulations, and to with reporting of information into GMS. For the 2020 make sure that we have the right methodologies, testing cycle, EY Zimbabwe tested 10 partners and procedures and processes in place as new service other personnel. offerings are developed. We restrict services from being provided that could present undue independence Non-audit services or other risks. SORT provides EY people with We monitor compliance with professional standards, information about EY service offerings. It includes laws and regulations governing the provision of non- guidance on which services can be delivered to audit audit services to audit clients through a variety of and non-audit clients, as well as independence and mechanisms. These include the use of tools, such as other risk management issues and considerations. PACE (see page 12) and Service Offering Reference Tool (SORT) (see below), and training and required Business Relationship Evaluation Tool (BRET) procedures completed during the performance of EY people are required to use BRET in many audits and internal inspection processes. We also have circumstances to identify, evaluate and obtain advance a process in place for the review and approval of approval of a potential business relationship with an certain non-audit services in advance of accepting the audit client, thereby supporting our compliance with engagement. independence requirements. Global independence learning Audit committees and oversight of EY develops and deploys a variety of independence independence learning programs. All professionals and certain other personnel are required to participate in annual We recognize the important role audit committees and independence learning to help maintain our similar corporate governance bodies undertake in the independence from the companies we audit. oversight of auditor independence. Empowered and independent audit committees perform a vital role on behalf of shareholders in protecting independence and The goal is to help EY people understand their preventing conflicts of interest. We are committed to responsibilities and to enable each of them, and robust and regular communication with audit their member firms, to be free from interests committees or those charged with governance. that might be regarded as incompatible with Through EY quality review programs, we monitor and objectivity, integrity and impartiality in serving test compliance with EY standards for audit committee an audit client. communications, as well as the pre-approval of non- audit services, where applicable. The annual independence learning program covers independence requirements focusing on recent changes to policy, as well as recurring themes and topics of importance. Timely completion of annual independence learning is required and is monitored closely. In addition to the annual learning program, independence awareness is promoted through events and materials, including new-hire programs, milestone programs and core service line curricula.
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Continuing education of audit professionals
Professional development information to help people collaborate and share best practices. Some EY resources and tools include: The continuous development of our people’s skills and knowledge is critical to achieving our purpose of • EY Atlas, which includes local and international enhancing confidence in the capital markets. accounting and auditing standards, as well as interpretive guidance Providing opportunities for the right experiences, • Publications such as International GAAP, IFRS learning and coaching helps them grow and achieve developments and illustrative financial statements their potential at a variable pace of progression that • Global Accounting and Auditing News — weekly suits them. update covering assurance and independence The day-to-day experiences gained are assigned locally policies, developments from standard setters and regulators, as well as internal commentary in a systematic way, while the EY audit learning core thereon curriculum is globally consistent. This is supported throughout by on-the-job coaching from more • Practice alerts and webcasts covering a range of global and country-specific matters designed for experienced professionals that helps to transform continuous improvement in member firms’ knowledge and experience into practice. Assurance practices Learning is delivered through the award-winning Audit Academy, which combines “on-demand” e-learning Performance management modules with interactive physical and virtual LEAD is EY’s framework that connects people’s career, classroom-based simulations and case studies, plus development and performance. LEAD is a key driver in relevant reinforcement and application support. creating a step-change in the experience of EY people. This is supplemented by learning programs that are Through ongoing feedback, development, counselor developed in response to changes in accounting and excellence and career conversations, LEAD aligns reporting standards; independence and professional individuals with the NextWave strategy and enables standards; new technology; and emerging people to focus on the future. practice issues. It is designed to support the growth and development Where an EYG member firm audits and reviews of EY people at all stages of their career at EY. An International Financial Reporting Standards (IFRS) individual’s personal dashboard provides an easy to financial statements, relevant team members interpret snapshot of their performance against the undertake learning to become IFRS-accredited. Leadership at EY dimensions, including quality, risk EY Zimbabwe requires our audit professionals to management and technical excellence, and assess obtain at least 20 hours of continuing professional performance against peers. Feedback received during education each year and at least 120 hours over a an annual cycle is aggregated and used as an input to three-year period. Of these hours, 40% [(eight hours compensation and reward programs. each year and 48 hours over a three-year period)] Regular connect with a counselor on topics such as must cover technical subjects related to accounting diverse career journeys, applying emerging and auditing. technology, experiencing new teams and learning helps identify opportunities for further development Knowledge and internal communications and to build future-focused skills. In addition to professional development and performance management, we understand the importance of providing client engagement teams with up-to-date information to help them perform their professional responsibilities. EY makes significant investments in knowledge and communication networks to enable the rapid dissemination of
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Revenue and remuneration
Financial information
Revenue represents combined, not consolidated, revenues, and includes expenses billed to clients and revenues related to billings to other EYG member firms. Revenue amounts disclosed in this report include revenues from both audit and non-audit clients. Revenue is presented included for: 1. Revenues from the statutory audit of annual and consolidated financial statements of PIEs, and entities belonging to a group of undertakings whose parent undertaking is a PIE 2. Revenues from the statutory audit of annual and consolidated financial statements of other entities 3. Revenues from permitted non-audit services to entities that are audited by the statutory auditor or the audit firm 4. Revenues from non-audit services to other entities 5.
Service Revenue Percent Audits and directly related services for 2 104 95% companies we audit 080 listed in EU Other audits and 107 518 5% directly related services Non-audit services provided to companies 10 628 % we audit listed in EU Non-audit services provided to other % entities Total revenue 2 222227 100%
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Partner remuneration • Complying with policies and procedures • Complying with laws, regulations and professional Quality is at the center of the EY strategy and is a key duties component of EY performance management systems. • Contributing to protecting and enhancing the EY Zimbabwe partners are evaluated and compensated EY brand based on criteria that include specific quality and The EY partner compensation philosophy calls for risk management indicators, covering both actions meaningfully differentiated rewards based on a and results. partner’s level of performance, as measured within the LEAD for partners, principals, executive directors and context of LEAD. Partners are assessed by their firms directors (PPEDDs) applies to all partners in EYG annually on their performance in delivering quality, member firms around the world. LEAD for PPEDDs exceptional client service and people engagement reinforces the global business agenda by continuing to alongside financial and market metrics. link performance to wider goals and values. The process includes goal setting, ongoing feedback, personal development planning and performance We operate under a system that requires quality to review, and is tied to partners’ recognition and reward. be a significant consideration in a partner’s overall Documenting partners’ goals and performance is the year-end rating. cornerstone of the evaluation process. A partner’s goals are required to reflect various global priorities, one of which is quality. To recognize different market values for different skills and roles, and to attract and retain high-performing EY policies prohibit evaluating and compensating lead individuals, the following factors are also considered audit engagement partners and other key audit when we determine our partners’ total reward: partners on an engagement based on the sale of non- Assurance services to companies they audit. This • Experience reinforces to EY partners their professional obligation • Role and responsibility to maintain independence and objectivity • Long-term potential Specific quality and risk performance measures have Instances of non-compliance with quality standards been developed to account for: result in remedial actions, which may include • Providing technical excellence performance evaluation, compensation adjustment, additional training, additional supervision or • Living the EY values as demonstrated by reassignment. A pattern of non-compliance or behaviors and attitude particularly serious non-compliance may result in • Demonstrating knowledge of, and leadership in, actions that include separation from EY Zimbabwe . quality and risk management
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Appendix 1: List of PIE audit clients
EY Zimbabwe PIE audit clients
In the fiscal year that ended on 30 June 2020, EY Zimbabwe performed audits of the following PIEs: NMB Holdings Limited
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Appendix 2:
List of approved EYG member firms in an EU or EEA member state As of 30 June 2020, the following EYG member firms are approved to carry out statutory audits in an EU or EEA member State:
Member State Statutory auditor or audit firm
Austria Ernst & Young Wirtschaftspruefungsgesellschaft mbH EY Assurance Services Belgium EY Bedrijfsrevisoren EY Europe SCRL Bulgaria Ernst & Young Audit OOD Ernst & Young d.o.o. Croatia Ernst & Young Croatia d.o.o. Ernst & Young Cyprus Limited Ernst & Young Cyprus Ernst & Young CEA (South) Services Ltd Ernst & Young CEA (South) Holdings Plc Czech Republic Ernst & Young Audit, s.r.o. EY Godkendt Revisionspartnerselskab
Denmark EY Grønland Statsautoriseret Revisionspartnerselskab EY Net Source A/S Ernst & Young Baltic AS Estonia Baltic Network OU Ernst & Young Oy Finland Julkispalvelut EY Oy Artois Auditex Ernst & Young Atlantique France Ernst & Young Audit Ernst & Young et Autres EY & Associés Picarle et Associes Germany Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Ernst & Young Heilbronner Treuhand GmbH Wirtschaftsprüfungsgesellschaft EY Revision und Treuhand GmbH Wirtschaftsprüfungsgesellschaft Schitag Schwäbische Treuhand GmbH Wirtschaftsprüfungsgesellschaft
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Member State Statutory auditor or audit firm
Gibraltar EY Limited Greece Ernst & Young (Hellas) Certified Auditors Accountants SA Hungary Ernst & Young Könyvvizsgáló Korlátolt Felelõsségû Társaság Iceland Ernst & Young ehf Ireland Ernst & Young Chartered Accountants Italy EY S.p.A. Latvia SIA Ernst & Young Baltic SIA Ernst & Young AG, Basel Liechtenstein Ernst & Young AG, Vaduz Lithuania Ernst & Young Baltic UAB Compagnie de Revision S.A. Luxembourg Ernst & Young Luxembourg S.A. Ernst & Young S.A. Malta Ernst & Young Malta Limited Netherlands Ernst & Young Accountants LLP Norway Ernst & Young AS Ernst & Young Audyt Polska sp. z o.o. Ernst & Young Audyt Polska Spółka z ograniczoną odpowiedzialnością Finance spółka komandytowa Poland Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością Doradztwo Podatkowe spółka komandytowa Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp. k. Ernst & Young Usługi Finansowe Audyt sp. z o.o. Portugal Ernst & Young Audit & Associados - SROC, S.A. Ernst & Young Assurance Services S.r.l. Romania Ernst & Young Support Services SRL Slovakia Ernst & Young Slovakia, spol. s r.o. Slovenia Ernst & Young d.o.o. ATD Auditores Sector Público, S.L.U Spain Ernst & Young, S.L. Sweden Ernst & Young AB Ernst & Young LLP United Kingdom Ernst & Young Europe LLP
Total turnover for the year ended on 30 June 2020 for these EYG member firms resulting from statutory audits of annual and consolidated financial statements was approximately € 2.8 billion.
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Optional: broader audit quality discussion
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