Transparency Report 2019 Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp.k. Transparency Report 2019: EY Audyt 1 Contents Message from the Country Managing Partner and the EY [country] Assurance Leader........................................................ 3 About Us ...................................................................................................................................................................... 4 Legal structure, ownership and governance ...................................................................................................................... 4 Network arrangements .................................................................................................................................................. 5 Commitment to sustainable audit quality ........................................................................................................................ 7 Infrastructure supporting quality ..................................................................................................................................... 7 Instilled professional values ............................................................................................................................................ 8 Internal quality control system ........................................................................................................................................ 9 Client acceptance and continuance ................................................................................................................................ 10 Performance of audits.................................................................................................................................................. 11 Review and consultation ............................................................................................................................................... 12 Rotation and long association ....................................................................................................................................... 13 Audit quality reviews ................................................................................................................................................... 14 External quality assurance review.................................................................................................................................. 15 Compliance with legal requirements............................................................................................................................... 15 Independence practices ............................................................................................................................................... 16 Continuing education of audit professionals .................................................................................................................. 18 Revenue and remuneration .......................................................................................................................................... 19 Financial information ................................................................................................................................................... 19 Partner/ key certified auditor remuneration ................................................................................................................... 20 Appendix 1: List of PIE audit clients ............................................................................................................................. 21 Appendix 2: List of approved EYG member firms in an EU or EEA member state .............................................................. 23 More information about EY can be found at ey.com. Transparency Report 2019: EY Audyt 2 Welcome to the 2019 Transparency Report of Ernst & Young Audyt Polska spółka z Message ograniczoną odpowiedzialnością sp.k. (EY Audyt). We believe that how we advance sustainable audit quality, manage risk and maintain our independence as auditors should from the be transparent to our stakeholders. We value regular dialogue, and this report is one of President of the ways in which we advise our stakeholders on what we are doing in each of these areas. Management Executing high-quality audits continues to be our top priority and is at the heart of our Board 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 in the audits we perform. EY Audyt’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 8th Company Law Directive and Act on Auditors, which require Polish statutory auditors of public interest entities (PIEs) to publish annual transparency reports. The 2019 EY Audyt Transparency Report complies with the Directive and Act on Auditors, and covers the fiscal year ending 30 June 2019. 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; and our independence practices. EY Audyt is focused on enhancing audit quality and upholding our independence, informed by several matters, 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 all 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. 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. Partner responsible for preparation of this report is Jarosław Dac (statutory auditor no 10138). Artur Żwak President of the Management Board of Ernst & Young Audyt Polska sp. z o.o. General Partner of Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp.k. EY is committed to doing its part in building a better working world. EY’s purpose: The insights and quality services we deliver help build building a trust and confidence in the capital markets and in better working economies the world over. We develop outstanding leaders who team to deliver on our promises to world stakeholders. In so doing, we play a critical role in building a better working world for our people, our clients and our communities. Transparency Report 2019: EY Audyt 3 About Us Legal structure, ownership and • Ernst & Young Audyt Polska sp. z o.o. • Ernst & Young spółka z ograniczoną odpowiedzialnością governance Operations sp. k. • EY Global Services (Poland) sp. z o.o. In Poland, Ernst & Young Audyt Polska spółka z ograniczoną • EY GDS (CS) Poland sp. z o.o. odpowiedzialnością sp.k. (entered on the list of audit firms on 16 February 1995 under no. 130) is a limited • EY Global Markets Services sp. z o.o. partnership organized in Warsaw and is a member firm of • EY Crowdsourcing sp. z o.o. Ernst & Young Global Limited, a UK company limited by The Members of the Management Board of the General guarantee (EYG). In this report, we refer to ourselves as Partners are: “EY Audyt,” “we,” “us” or “our.” EY refers collectively to • Artur Żwak – President of the Management Board the global organization of the member firms of EYG. (statutory auditor no 9894) Ernst & Young Audyt Polska spółka z ograniczoną • Jacek Hryniuk – Vice-President of the Management odpowiedzialnością sp.k. has the following Partners: Ernst & Board (statutory auditor no 9262) Young Audyt Polska sp. z o.o. entered on the list of audit The Members of the Supervisory Body of the General firms under no. 3822 (General Partner), Ernst & Young Partners are: Usługi Finansowe Audyt sp. z o.o Polska sp.k. and Ernst & • Iwona Kozera (statutory auditor no 9528) Young Usługi Finansowe Audyt sp. z o.o. i Wspólnicy sp.k. (Limited Partners). Further details regarding the ownership • Jarosław Dac (statutory auditor no 10138) of EY Audyt are available in the public registry of companies • Renata Hayder (National Court Register maintained by the District Court EYG member firms are grouped into three geographic for the city of Warsaw, XII Economic Department) in Poland. Areas: Americas; Asia-Pacific; and Europe, Middle East, EY in Poland also includes the other EYG member firms: India and Africa (EMEIA). Japan was a separate fourth Area, but on 1 July 2019 became part of Asia-Pacific. The Areas • Ernst & Young Usługi Finansowe Audyt spółka z comprise a number of Regions, which consist of member ograniczoną odpowiedzialnością Polska sp.k. firms or sections of those firms. • Ernst & Young Usługi Finansowe Audyt spółka z ograniczoną odpowiedzialnością i Wspólnicy sp.k. EY Audyt is part of the EMEIA Area, which comprises EYG