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Ernst & Young Transparency Report: System of Quality Management

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Sustainability Commitments

Ernst & Young (EY) has made several commitments to sustainability, including:

Renewable Electricity and Carbon Reduction

  • EY aims to introduce more renewable electricity than they consume into national grids through Power Purchase Agreements (PPAs).
  • They will use nature-based solutions and carbon-reduction technologies to remove or offset more carbon than emitted each year.
  • EY teams will have tools to calculate and reduce the amount of carbon emitted in client work.

Supplier Commitments

  • 75% of EY suppliers, by spend, must set science-based targets by no later than FY25.
  • EY invests in services and solutions that help clients decarbonize their businesses and address other sustainability challenges.

System of Quality Management

EY has finalized the implementation of the International Standard on Quality Management 1 (ISQM 1) and transitioned from an Internal Quality Control System to a System of Quality Management, which meets the requirements of ISQC 1 issued by the International Auditing and Assurance Standards Board (IAASB).

Compliance with EU Regulation

  • EY confirms compliance with EU regulation covering:
    • The effectiveness of internal quality control systems
    • Audit firm independence practices
    • Continuing education policy for statutory auditors

Structure

Reputation and Objectivity

  • EY Gabon’s reputation for providing high-quality professional audit services is fundamental to their success as independent auditors.
  • They continue to invest in initiatives to promote enhanced objectivity, independence, and professional skepticism.

Designing, Implementing, and Operating a System of Quality Management

  • ISQM 1 requires a more proactive and risk-based approach to managing quality at the firm level by requiring firms to design, implement, and operate a System of Quality Management.
  • ISQM 1 also requires evaluating, at least annually, the System of Quality Management.
  • The governance, leadership, and culture of professional accountancy firms are crucial in implementing and maintaining a high-quality audit.