Transparency Report FY 2020 PricewaterhouseCoopers Consultores Auditores SpA 1 PwC | Transparency Report Fy 2020 Contents 1. Opening Message from our Leadership 2. Organization and Ownership 3. Our Approach to Quality 4. Culture and Values 5. Our People 6. Our Audit Approach 7. Monitoring 8. Governance and Structure 9. PwC Network 10. Financial Information 11. Public Interest Entities Audited by PwC Chile 12. Offices in Chile 2 PwC | Transparency Report Fy 2020 Message from Our leadership On behalf of the partners of PricewaterhouseCoopers Internal quality systems and procedures are materialized Consultores Auditores SpA (PwC Chile), it is my pleasure through a formal annual evaluation process, based on to present the 2020 Transparency Report. an electronic system that covers the main policies and procedures that must be observed to comply with the Over the past year, we have witnessed unprecedented strategic objectives of maximizing quality and minimizing events globally for our organization and for our clients. exposure to risk. Both the general political climate and the worlwide outbreak of the COVID-19 pandemic have generated a Our leaders frequently and consistently communicate our series of difficulties for governments and companies, both purpose, especially in these times. It drives our actions at an operational, financial, and logistical level. But just as with clients, colleagues and stakeholders, informs our these difficulties have been generated, we have also been choices, guides our decision-making, and shapes our able to live up to our purpose: to build trust in society and debates. solve important problems. We have managed to constantly support our clients and stakeholders to meet their goals In this report, you will find an insight about how we and we have adapted our methodologies to take on the approach quality in the profession, what are our culture challenge of continuing to deliver the quality services that and values, the importance of our people and how we characterizes us as a firm while taking the corresponding generate professional development, a general explanation sanitary measures to protect our staff. of our organization and governing structure and our financial information among others Likewise, with the help of the PwC Network, we have generated best practices for these difficult times in order to This Transparency Report has been prepared to comply continue delivering quality in our services and to continue with relevant regulatory requirements in the EU, particularly contributing to transparency and trust within the markets Article 13 of Regulation (EU) No 537/2014, covering our in all the countries where we operate as a Network. This is financial year ending on June 30, 2020. why this report is focused on the quality of our audits and the approach we have to them. We will continue working on developing and improving our internal routines and control procedures, as well as acting We are a Network of firms in 157 countries with more than through our values - act with integrity, make a difference, 276,000 people who are committed to delivering quality care, work together and reimagine the possible - in order in Assurance, Advisory and Tax and Legal Services. At not only to build relationships that help our customers PwC Chile, the most qualified and expert auditors, lawyers create the value they seek, but also to contribute and advisors combine their knowledge, experiences and increasing trust in society. solutions to deliver high quality services to a number of the world’s leading companies, both private and public, and Enjoy reading! other relevant organizations. To sustain quality audits, we need to attract and retain talented professionals. At PwC Chile, we use considerable resources to attract and develop the people that we think are the right ones to advice our customers and their challenges. To attract top talent, we focus on recruiting, traineeships, and creating an inclusive environment. Also, our professionals participate in specialization programs Renzo Corona Spedaliere and continuous training, which allows them to be aware of Territory Senior Partner the major changes they face every day. PwC Chile 3 PwC | Transparency Report Fy 2020 Organization and ownership Our firm was founded in Chile, in the port of Valparaiso in A and Class B. Only shares Class A have voting rights April 1914, being a relevant player of the most significant in the General Meeting, and each partner owns one of milestones in the history of business within Chile. Our these shares. Shares Class B are distributed among all the firm was part of the government auditing in the 20’s, we partners (also named “shareholders” for legal purposes) in provided support to the creation of public services in the different proportions according to their responsibility and 40’s, and we rendered services to Chilean companies in seniority within the firm. their global expansion during the 90’s. The Assurance line of services has 17 partners, while Tax A trajectory of more than a century in Chile, endorse and Legal Services line has 12 partners, and Advisory our firm as a recognized company for its quality in the line of services has 2 partners. The 17 auditors partners delivery of integral solutions to support the business of have been authorized by CMF to conduct, direct and sign organizations. reports of external audits, and currently own more than 50% of the firm’s capital in accordance with applicable PricewaterhouseCoopers Consultores Auditores SpA is local regulation. a company limited by shares, incorporated and existent in accordance with the laws of Chile. Its tax identification PwC Chile owns and controls 2 subsidiaries number (RUT) is 81.513.400-1 and it is enrolled before the “PricewaterhouseCoopers Servicios Profesionales Registry of Commerce of Santiago (held by the Real Estate Limitada” and “PricewaterhouseCoopers Capacitación Registry of Santiago), which company excerpt is registered y Desarrollo Profesional Limitada”, both limited liability at fojas 7,301 number 3,535 of the Registry of Commerce companies incorporated and existent in accordance with of Santiago of 1987. Chilean law, that offer certain consultancy and training The current Articles of Association of the firm are set forth services. in public deeds granted on January 3, 2017 and March 9, 2020, registered and granted before Mr. Andrés Rieutord PwC Chile provides services throughout Chile and Alvarado, Public Notary of Santiago, Chile. has offices in Santiago, Viña del Mar, Concepción and Our firm offers a wide range of services, including audit Puerto Montt. Our headquarters are located in the city of and assurance services, general business consulting Santiago. services, tax compliance and reporting services, as well as tax and legal consulting services. We are organized in the In addition, together with PwC firms from Bolivia, following 3 line of services (LoS): Assurance, Advisory and Colombia, Paraguay, Peru, Uruguay, Argentina and Tax and Legal Services. Venezuela, we are members of the Latin American Network PwC Chile is an external audit firm, authorized by the (“LAN”) of PwC. Our main objective is to overcome Chilean Commission for the Financial Market (“CMF”, challenges through sharing experiences and collaboration, formerly known as Superintendence of Securities and especially regarding the Network global policies Insurances or “SVS”), and registered under No. 8 of the implementation. Public Register of External Audit Companies of Chile held by such regulator. All business and lines of services of PwC Chile are subject to a quality control system based on PwC Network’s global PwC Chile’s ownership rests directly in its partners that, policies. at the beginning of the current fiscal year, corresponds The fiscal year for PwC Chile comprises the period from to 31 individuals. As per its current bylaws, the capital of July 1, 2019 to June 30, 2020. PwC Chile is divided into two classes of shares, Class 4 PwC | Transparency Report Fy 2020 5 PwC | Transparency Report Fy 2020 Our approach to delivering quality services across all our operations and network Focus on Quality Measurement and transparency The quality of our work is at the heart of our organisation For all our businesses, each PwC firm – as part of the and we invest significant and increasing resources in its agreement by which they are members of the PwC continuous enhancement across all of our businesses. network – is required to have in place a rigorous system This investment is targeted into many different areas, of quality management (SoQM); to annually complete a including training (technical, ethical and behavioural), SoQM performance assessment; and to communicate the methodologies, adding resources in key areas and results of these assessments to global leadership. These exploring new ways of delivering our work. Each results are then discussed in detail with the leadership of investment reflects a common determination to understand each local firm and if they are not at the level expected, the factors that drive quality and identify opportunities for a remediation plan is agreed with local leadership taking enhancement. personal responsibility for its successful implementation. We are also investing heavily in new technology to As our services change and develop, and the needs and drive continuous improvement in the capabilities and expectations of our stakeholders also change, we are effectiveness of all of our services. continually reviewing and updating the scale, scope and operations of our system of quality management and We are proud to have been the first of the global investing in programmes to enhance the quality of the professional services networks to have published its services that we provide. internal audit quality inspection results. It is very important that we are transparent about both the efforts that we are For example, we have recently renewed our focus on ‘tone making to enhance quality, and also the results and the at the top’ of our organisation and are creating the right impact that these efforts are having.