CONTINUING TO BUILD TRUST
2020 Audit Quality Report
BDO’s 2020 Audit Quality Report explores how we invest in our system of quality management, leadership, professional practice resources, and systems; define and measure audit quality indicators; and relentlessly execute our client audits guided by our firm’s core values and our professional judgment.
Audit Quality Indicators
Governing the Tone
of Our Culture
and Leadership
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Promoting Ethics
and Independence
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Ensuring the Right Fit – Client Acceptance
and Continuance
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Developing and Managing High Caliber People and Teams
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Ensuring High
Quality Engagement Performance
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Monitoring
Audit Quality
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From our leadership structure and future-focused board to our people first philosophy and diversity of perspective, our culture fosters personal accountability for delivering high quality audits.
Governing the Tone of Our Culture and Leadership
Partners & Directors
19%
Senior Managers
& Managers
21%
Seniors
31%
Staff
29%
of our Assurance practice is composed of women and Black, Indigenous and Other People of Color
55%
Our Assurance Practice Composition
of Assurance professionals believe they are personally responsible for audit quality
96%
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We recognize the integrity and credibility of the financial reporting process depends on our firm and the entire public accounting profession complying with all ethics and independence policies, rules and regulations.
Promoting Ethics and Independence
Demonstrating tone at the top and zero tolerance policy for misdeeds
Ethics in Action
We are considerate of our clients’ risk management profiles and provide those charged with governance and management timely and impactful insights to enhance financial reporting.
Ensuring the Right Fit
Providing continuing ethics and independence learning for firm professionals
Ensuring our monitoring and compliance systems are designed and operating effectively
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Audit Quality Spotlight
Emerging risk management issues on our radar for 2020 and beyond
Evolving Industries
Non-GAAP Metrics
COVID-19 Impact
Changing Workplace
Technology Evolution
Cybersecurity &
Data Privacy
Total Tax Liability
ESG & Investor Priorities
Investing in the recruitment, development and retention of highly engaged and technically proficient people is one of our highest priorities as a firm
Developing and Managing High Caliber People and Teams
Bolster access to talent across broad skillsets
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Stay connected and supportive while holding professionals accountable to goals and performance metrics
Focus on professional development rooted in collaboration, flexibility, professional judgment and problem solving
RECRUIT
REVIEW
RETAIN
Our investment in a globally adapted audit methodology, digital enablers and significant technical and consultative resources ensures a consistent audit approach. Our portal allows our clients and professionals to securely share real-time insights across geographies.
Ensuring High Quality Engagement Performance
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of new BDO USA audit engagements leverage our
100%
Next Gen global audit process tool
BDO supports
more than 100,000
customized client portals throughout the world
Our platform is supporting
increased demand
brought on by the pandemic
and security needs
Ratio of National Assurance professionals to Assurance Practice professionals
1 to 23
Ratio of Audit Quality Network professionals to Assurance professionals
1 to 7
Technical and Subject Matter Support
Quality is a consequence of deliberate action. Continuous enhancements to our system of quality management and inspection processes ensure the right focus to continue building stakeholder trust in the future of audit.
Monitoring Audit Quality
Number of engagements internally inspected in FY20
136
Percentage of current inspection cycle private company inspections conforming without a material defect
93%
Aggregate current year inspection cycle inspections (private and public) considered conforming
9 out of 10
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Governing the Tone of Our Culture and Leadership
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Promoting Ethics
and Independence
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Governing the Tone of Our Culture and Leadership
LEARN MORE >
Promoting Ethics
and Independence
LEARN MORE >
Ensuring the Right Fit – Client Acceptance and Continuance
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BDO’s 2020 Audit Quality Report explores how we invest in our system of quality management, leadership, professional practice resources, and systems; define and measure audit quality indicators; and relentlessly execute our client audits guided by our firm’s core values and our professional judgment.
Evolving Industries
Non-GAAP Metrics
COVID-19 Impact
Changing Workplace
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