Building trust in a year of uncertanity - 2021 Transparency Report Deloitte Statsautoriseret Revisionspartnerselskab Business Registration No. 33 ...
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Building trust in a year of uncertanity 2021 Transparency Report Deloitte Statsautoriseret Revisionspartnerselskab Business Registration No. 33 96 35 56 For the year ended 31 May 2021
2021 Transparency Report |
Contents
Contents
Leadership message: Building trust in a year of uncertainty 4
COVID-19 6
Environmental, social, and governance (ESG) reportings 8
Deloitte network 10
Legal structure and ownership 11
Deloitte Denmark: Governance – leadership in action 12
Executive team 14
Board and CEO 15
NSE Governance 16
Our purpose and commitment: instilling trust and confidence 17
What Deloitte Audit & Assurance brings to the capital markets 18
External and internal audit quality monitoring 21
Professional development and performance management 24
Independence, ethics, and additional disclosures 26
Deloitte Global Ethics and Integrity Imperative 28
Appendices 29
Appendix A | EU/EEA audit firms 30
Appendix B | Financial information 33
Appendix C | Public interest entities 34
Equity partners in Deloitte 36
Deloitte offices in Denmark 39
3
2021 Transparency Report |
Leadership message 2021 Transparency Report |
Leadership message
Leadership message1
Building trust in a year of
uncertainty
This past year has seen unprecedented uncertainty, a resilient business. To meet the increasing need for
and we have focused on responding, recovering and advice on climate and sustainability, we are helping
thriving after the pandemic. We have reshaped our our clients navigate through climate targets, strategy,
business and helped our clients reshape theirs to a new measurements and advising governing bodies on
normal through building resilient leadership, making providing the right framework to measure the climate
businesses more agile and accelerating innovation. footprint of companies today. We also have a global
As individuals and in teams, we have embraced climate ambition to become carbon neutral in 2030,
megatrends as opportunities for growth rather than which includes initiatives to reduce travel and a greener
perceiving them as limitations to what we can achieve car fleet among other things.
together.
Quality and trust will always be at the heart of our
Our purpose is to create an impact for our clients, our business. And quality is not only a matter of
people and the society we are part of, which essentially having the right technologies and processes – it is also
means, that we want to contribute to making the world about delivering to our clients and investing in our
a better place. culture and our people. Quality also means showing
transparency about audits and our profession to
Our people bring our purpose and values to life and continue to build trust in capital markets.
are our most valuable asset. This year, we have taken
the future of work to a new level – accelerated by In order to provide insight into how Deloitte is
the pandemic which forced us to discover new ways organized, our ethical principles and how to ensure
of working. Today we are offering a more flexible a consistent, high quality of our audit and advisory
workplace, we have adapted our leadership style to services, we have prepared this transparency report –
fit the new ways of working, and we continue to offer for 12 consecutive years now.
lifelong learning and a community for life. In addition,
we increasingly focus on creating a more diverse
workplace. Happy reading!
While our people are essential to who we are and what
we can deliver, our clients are at the heart of everything
we do. Many of our clients have also accelerated digital
transformation, business transformation and climate
responsibility as well as kept a strong focus on building Anders Vad Dons, CEO and partner
Deloitte Statsautoriseret Revisionspartnerselskab is the Danish affiliate of Deloitte North and South Europe (NSE) LLP, a member firm of Deloitte Touche Tohmatsu
1
Limited (DTTL), a UK private company limited by guarantee. DTTL – also referred to as Deloitte Global - and each of its member firms are legally separate and
independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of
member firms.
4 5
2021 Transparency Report |
COVID-19 2021 Transparency Report |
COVID-19
COVID-19
Deloitte’s highest priority is the safety and well-being of uncertainties and emphasize the importance of to support professionals during periods when they have
its professionals. In this changing global environment as high-quality, forward-looking corporate disclosures. been required to work remotely. Deloitte Global has Multidisciplinary model (MDM)
the impacts of COVID-19 continue to unfold, investors Importantly, some regulators have conveyed that good launched and continues to maintain the Deloitte Global MDM is an important contributor to high-quality audits.
and stakeholders are looking to auditors more than faith attempts to provide investors and other market Audit & Assurance Technical Delivery Resource Center – Auditors increasingly use the work of specialists in a number
ever to provide an independent opinion on companies’ participants with appropriately framed forward-looking a central location for all Deloitte professionals to access of areas, including to assist in their evaluation of accounting
financial statements. Deloitte remains committed information will not be second-guessed. There is globally relevant and locally adaptable COVID-19-related estimates and fair value measurements. This has been more
to this critical role and delivering the highest quality benefit to the public for greater transparency from audit resources and guidance. These responses have important than ever as companies' financial statements were
audits. various financial reporting ecosystem stakeholders allowed us to continue to reinforce execution of the required to reflect the uncertainties presented by COVID-19.
raising awareness about these issues. This includes Deloitte audit approach throughout the pandemic. Financial statements may continue to grow in complexity due
Entity management and auditors alike are affected by providing more clarity on the responsibilities of to new ESG considerations and other focus areas. Further,
restrictions on travel and requirements to stay at home. management, audit committees, companies, auditors, Deloitte has also led global initiatives to understand as big data utilization becomes more pervasive in line with
With travel restrictions affecting entities’ personnel and regulators, and other stakeholders. the implications of working virtually for professionals, other digital advances, the demand for data analysts and IT
auditors, companies may obtain information in new to provide them with support to enhance team specialists will grow accordingly. Among the benefits of the
or different ways. In addition, entity management is Deloitte’s overarching strategic objectives are collaboration and to consider new ways of working MDM are:
faced with significant uncertainty in making judgments principles-based and remain unchanged (e.g., in a remote environment. Despite the virtual working
to project future operating results and cash flows, investments in quality, people, and technology), environment, learning was successfully delivered to • Possibility to develop industry insights through multiple
going concern, and developing valuation analysis, however, some related processes have been modified Deloitte professionals through virtual programs and lenses, which enhances auditors’ understanding of business
etc. The financial reporting process likely requires or prioritized to factor in unanticipated changes due we are using this experience to drive continuous risks relevant to conducting audits.
careful analysis and further considerations of impact to the pandemic. Deloitte firms were required to improvement.
• Immediate access for the audit practice to specialized
from management and auditors given the current implement monitoring and consultation processes
resources in other business lines. This promotes audit quality
environment. to maintain high standards of quality and reinforce The transformation of audit execution in an increasingly
because auditors can leverage the knowledge and experience
key areas of focus impacted by the implications of dynamic work environment has led Deloitte to respond
of advisory professionals who are skilled in subjects beyond
All stakeholders of the financial reporting COVID-19. to the rapidly changing needs and requirements of the
audit and assurance.
ecosystem must exercise significant judgment in talent landscape. As Deloitte is organizing the return to
this unprecedented and uncertain environment— Deloitte has been focused on setting the necessary the workplace in several countries, it is challenging its • A diverse organization helps attract and retain premier talent.
governments, when projecting the length of closures; tone for the historically challenging period that historical working methods and considering a hybrid
• Availability of intellectual capital within the network to
bankers, when deciding if a loan can be repaid in followed. From an audit risk perspective, the fluid working environment.
innovate audit processes, technologies, etc.
full; management, when evaluating if a company can economic and health environments globally continue
continue operating as a going concern and audit to put pressure on the risk of fraud, asset impairments, Going forward, Deloitte will continue to focus its efforts • Parts of the business grow at different rates during various
committees providing oversight of management; and going concern in certain industries. Operational and provide a consistent audit experience in a way time periods across markets. Deloitte’s MDM provides
auditors, when assessing these judgments; and challenges in some industries can manifest into that embraces the evolving expectations of clients and a safeguard against market volatility that is important to
investors, when analyzing the available financial financial reporting challenges, while other industries professionals. long-term viability of the network and makes significant
information in light of these unprecedented may be benefiting from the current environment. investments in audit quality and innovation possible, even in
uncertainties. times of financial pressures on the audit business.
The professional standards, Deloitte policies and
Although the existing accounting frameworks have guidance, strong consultation and specialist networks, Deloitte’s response to COVID-19 demonstrates both resiliency
provisions for uncertainties, it is important for financial and steadfast diligence continue to be the basis for in putting audit quality and the public interest first which is
statement users and regulators to expect a higher degree Deloitte’s execution of high-quality audits. Deloitte’s further supported by the significant benefits of the MDM. Each
of market and economic volatility in the near future. global technology and infrastructure allowed for an non-audit Deloitte business has a shared and vested interest
agile and rapid response to the various impacts of the in supporting audit quality initiatives and Deloitte’s strategy to
Deloitte welcomes the public statements and guidance COVID-19 pandemic. Deloitte prepared for various deliver high-quality, globally consistent service to clients.
issued by regulators that recognize the current contingencies in order to support changing needs and
6 7
2021 Transparency Report |
Environmental, social, and governance (ESG) reportings 2021 Transparency Report |
Environmental, social, and governance (ESG) reportings
Environmental, social, and
governance (ESG) reportings2
Financial reporting today strategy. Over time, many standard setters and
To better assess the resiliency of corporate strategies other organizations have developed frameworks or
to climate-related and other ESG matters, investors standards for reporting metrics and ESG information
and stakeholders are seeking reliable and comparable for use by companies. However, currently there is
information on the potential impacts of these matters. no global enforcement mechanism or assurance
These matters could have implications on a company’s requirements for consistent adherence or adoption.
financial accounting and reporting, in the context of Deloitte supports the International Financial Reporting
the existing accounting standards and the financial Standards Foundation’s (IFRSF) proposal to establish
statement audit. Companies follow financial reporting the International Sustainability Standards Board (SSB)
standards such as the International Financial Reporting that, alongside the International Accounting Standards
Standards (IFRS) and US Generally Accepted Accounting Board and under the governance and oversight of the
Principles (GAAP). Auditors follow auditing standards IFRSF, would provide a set of global standards.
such as those established by the International Auditing
and Assurance Standards Board (IAASB), International There is a growing interest for companies to integrate
Standards on Auditing (ISA), and Public Company climate-related and other ESG considerations into
Accounting Oversight Board (PCAOB) related to the systems of internal control, enhancing the maturity
audit of the financial statements. These standards of systems, processes, and governance over climate-
require auditors to identify and assess the risks of related and other ESG information. Those charged with
material misstatement in the financial statements of governance (e.g., Audit Committees, Boards) are moving
the companies they audit, and design and perform toward incorporating ESG considerations in their
audit procedures responsive to those risks. Deloitte oversight responsibilities of companies’ management—
is increasing awareness of the potential impacts of companies’ readiness, companies’ management
climate-related and other ESG matters on financial skillsets, and implementation of processes and controls
reporting through guidance, tools, templates, learning, to collect data. independence, professional skepticism, commitment to working together to develop and implement common
and leading practices. quality, and appropriate training that are equally critical. standards upon which to measure, disclose, and
Deloitte supports efforts to make publicly disclosed All of these are covered under the typical infrastructure ultimately assure ESG information.
Corporate reporting of the future ESG information consistent, comparable, and reliable. of audit firms and will be further reinforced with
In addition, market participants and broader Assurance provides a greater confidence in ESG the adoption of ISQM 1, which becomes effective in Further, to help the world achieve the goals of the Paris
stakeholders are calling for greater insight into information. Deloitte believes that there is a benefit December 2022. Agreement, Deloitte has launched WorldClimate, a
corporate performance, specifically demanding of ESG assurance being provided by an audit firm. strategy to drive responsible climate choices within the
enhanced transparency around ESG impacts and Objectivity, credibility, and integrity are qualities valued Deloitte supports the continued collaboration of all Deloitte network and beyond.
dependencies of a company’s business model and most in assurance providers. These are in addition to participants in the financial reporting ecosystem,
2
For more information about Deloitte’s alignment with ESG, please refer to Deloitte Global Impact Report.
8 9
2021 Transparency Report |
Deloitte network 2021 Transparency Report |
Legal structure and ownership
Deloitte network Legal structure
and ownership
Network description: The Deloitte network
Systems
of quality
Shared values
control & risk
management
Professional
Common The main activity in Deloitte Denmark is to deliver audit Ownership structure in Deloitte Denmark
Methodologies technologies/
standards platforms and advisory services in Denmark and Greenland within
the limits of the auditor legislation.
Deloitte General Partner ApS acts as general partner
and is owned by Deloitte NSE.
Audit & Assurance Transformation
Deloitte Denmark: legal structure and ownership
3
Network description
Deloitte Statsautoriseret Revisionspartnerselskab is The Deloitte network
Equity partners Deloitte General
connected to the Deloitte
Deloitte Way: network through Deloitte The Deloitte network (also known as the Deloitte
in Deloitte Partner ApS
North andstandardisation
South Europe (NSE)of LLP, Real-time
a memberauditfirm organization) is a globally connected network of member
of Deloitte audit
Touche processes
Tohmatsu Limited. Deloitte
quality monitoring firms and their respective related entities operating in
supported by global
Statsautoriseret Revisionspartnerselskab
technology suite is referred more than 150 countries and territories across the world.
to throughout this report as “Deloitte Denmark”, and These separate and independent member firms operate
Deloitte North and South Europe (NSE) LLP is referred under a common brand.
Enhanced talent
to throughout this report as “Deloitte Agile NSE”. DeloitteofNSE
deployment
model which includes
holds practice rights to provide tools and
professional services Deloitte Touche Tohmatsu Limited (DTTL or
learning, rewards and
using therecognition,
“Deloitte” name technologies
which it extends to
to Deloitte Deloitte Global)
centres
respond to changing
of excellence,
entities within andincluding Deloitte Denmark.
its territory, Deloitte Touche Tohmatsu Limited is a UK private
environments
delivery iscentres
Deloitte Denmark authorised to serve as an auditor company limited by guarantee incorporated in England
for clients in Denmark and Greenland. and Wales. DTTL serves a coordinating role for its
member firms and their related entities by requiring
Audit innovation
As of today, Deloitte NSE consists of the former member adherence to policies and protocols with the objective Deloitte Statsautoriseret
firms in UK, Switzerland, Ireland, Belgium, Holland, Norway, of promoting a consistently high level of quality, Revisionspartnerselskab
Sweden, Finland, Iceland, Italy, Greece, Malta, Libya, professional conduct and service across the Deloitte
Egypt, PalestinianHow
Ruledwe equip our
Territories, peopleJordan,
Lebanon, network. DTTL does not provide professional services to
Saudi Arabia, Iraq,portal providing
Kuwait, Bahrain,aQatar,
full suite
UAEof(United
tools clients, or direct, manage, control or own any interest in
COGNIA
Arab Emirates), Oman, Yemen, Cypres and Denmark. The any member firm or any member firm’s related entities.
firms mentioned Howoperate
weas separatedata
analyze independent legal
entities and provide services in their respective
approach to audit analytics
countries For more information about the Deloitte network, please
in accordance
ILLUMIA with professional standards. Deloitte NSE see: About Deloitte.
is registered in UK and Ireland through the Institute of
How we
Chartered Accountants deliver and
in England our Wales,
auditsbut does not
provide approach
services to clients. to audit delivery
MAGNIA
3
Article 13 of Reg. 537/2014 requires: EU transparency reporting requirement: description of the legal structure and ownership of the audit firm.
Independence systems
10 11
DESC
Deloitte Entity Search and Compliance2021 Transparency Report |
Governance – leadership in action
Our purpose and commitment
Deloitte Denmark
Instilling trust and confidence
Governance – leadership
in action4
Objective Board
The leadership structure in Deloitte Statsautoriseret The Board consists of six members among which
Revisionspartnerselskab is established to comply with 3 are appointed by the equity partners. 1 member is
the requirements of the Danish Companies Act and to appointed by Deloitte NSE LLP. All four are elected at
support an active and involving partnership. the Company’s general assembly, and two are elected
by the employees. Four of the six members are state
Equity partners authorised public accountants or statutory auditors.
Deloitte Statsautoriseret Revisionspartnerselskab is
a partner company whos ultimative owners are the CEO
Danish equity partners. The equity partners have The CEO is Anders Vad Dons who is in charge of the
influence on overall decisions like policies, strategies daily management of Deloitte Denmark in accordance
and action plans. This influence is implemented with the policies, strategies and action plans developed
informally through the equity partners’ daily work in the in cooperation with the Company’s equity partners and
Company and through discussions with the Company’s approved by the Board.
Board, CEO and Executive team. Formally, the influence
is implemented through partner meetings and at the Executive team
Company’s general assembly. The CEO has established an Executive team to support
him in the daily management of the Company. In
Additionally, the equity partners will be able to influence addition to the CEO, the Executive team consists of the
decisions through formal roles in the Board and the Heads of the five business units, Clients & Industries,
Executive team. Private, Talent, Risk & Reputation, and the COO. The
Executive team meets regularly to implement the
Partner Council approved policies, strategies and action plans.
The equity partners elect five equity partners to form
the Partner Council. The Partner Council oversees and
ensure fairness in the Danish partnership.
At Deloitte Denmark, our purpose is to make an impact that matters. For Audit &
Assurance, this means a focus on delivering independent high quality audits and
instilling confidence and trust in the capital markets through the services we deliver.
This requires us to continuously build capabilities to support the delivery of high quality
audits and make leading contributions to shaping the future of the audit profession.
4
Article 13 of Reg. 537/2014 requires: EU transparency reporting requirement: a description of the governance structure of the audit firm.
12 132021 Transparency Report |
Executive team 2021 Transparency Report |
Board and CEO
Executive team Board
Anders Vad Dons Henrik Wellejus Bjørn Winkler Jakobsen Gustav Jeppesen Therese Kjellberg Michel Denayer
CEO Head of Audit & Assurance Head of Private Chairman
Camilla Kruse Niels Josephsen Sigurd Ersted Jensen Jesper Smedegaard Larsen Lars Kronow Eva Sigurbjörg Þorkelsdóttir
Head of Talent Head of Tax & Legal Head of Financial Advisory Elected employee board member
Morten Storm Ry Martin Søegaard Mette Louise Kaagaard Mette-Katrine Hviid
COO Head of Consulting Head of Risk Advisory Elected employee board member
CEO
Christian Schelde Jensby Jens Lundgaard Simonsen
Head of Clients & Industries Head of Risk & Reputation
Anders Vad Dons
CEO
14 152021 Transparency Report |
NSE Governance
NSE Partnership Agreement
NSE Board
Deloitte’s priority focus on audit quality
NSE Governance
NSE Executive
Geography governance bodies
The Deloitte NSE governance structure consists of the NSE Board, NSE Executive, Geography governance bodies and
Local Partnership Supervisory/Oversight Geography Executive
Geography Executive, underpinned by the NSE Partnership Agreement as set out below:
Councils Boards
NSE Partnership Agreement
NSE Board
NSE Executive
NSE Board Considers / Approves NSE Executive
/ Rejects / Assures
Geography governance bodies
Delegate Recommend
Local Partnership Supervisory/Oversight Geography Executive
Councils
NSE Sub-committees Boards
Refer NSE
• The NSE Partnership Agreement underpins the governance of NSE matters
• The NSEInformal
Board is dialogue & governance body of NSE, responsible for ensuring high quality governance and stewardship of NSE.
the primary
exchange of views Considers / Approves
The NSE Board works
NSE with the NSE Executive to set and approve
Board Reports the long-term strategic objectives of NSE NSE
and Executive
the markets in which it
/ Rejects/ /Updates
Assures/
operates. The NSE Board comprises the NSE CEO, NSE Requests
Chair and /elected members, as well as Independent Non-Executives (INEs) and
Recommends
a Deloitte Global Representative. The latter does not have voting rights
Delegate Recommend
• The NSE Board Board oversees the risk appetite in each business area; is responsible for the oversight of the Executive function, ensuring
NSE Sub-committees
alignment with Deloitte
Geography Global obligations; and is responsible for the promotion and protection of NSE Equity Partner interests generally
governance Geography Executives
bodies
• The NSE Executive is responsible for developing the NSE strategy and vision as well as NSE policies, and overseeing their
implementation and execution Address & resolve local legal, Refer NSE
regulatory and Partner matters matters
• Geography governance bodies exist where this is required for legal and/or regulatory purposes and to oversee local Partner matters
InformalExecutive
• The Geography dialogue &works with the NSE Executive to reflect the Connected+ Autonomy operating model (balancing local and
exchange of views
central requirements), including the development and delivery of approved
Reports / Updatesplans,
/ in line with the NSE strategy, tailored to reflect local
market conditions. Requests / Recommends
NSE Board Considers / Approves NSE Executive
/ Rejects / Assures
Delegate
Geography governance
Recommend Geography Executives
bodies Deloitte’s commitment to audit quality is central to everything we do, from instilling a culture of quality
NSE Sub-committees
and excellence across the network, to business and financial priorities, and the processes, tools and
Address & resolve local legal,
Refer NSE technologies applied in the execution of audits. Making sure audit quality keeps pace with emerging
regulatory and Partner matters
matters economic, business, and regulatory conditions, as well as technological advances is critical to the continual
Informal dialogue &
Reports / Updates / enhancement of Deloitte’s role in protecting the public interest and supporting the effective functioning
exchange of views
Requests / Recommends
of the financial ecosystem. Deloitte’s brand is defined by the high-quality audits delivered and by the
unwavering commitment to continuous improvement.
Geography governance Geography Executives
bodies Address & resolve local legal,
NSE Board Considers
regulatory and /Partner
Approves
matters NSE Executive
/ Rejects / Assures
16 Delegate 17
Recommend
NSE Sub-committees2021 Transparency Report |
What Deloitte Audit & Assurance brings to capital markets 2021 Transparency Report |
What Deloitte Audit & Assurance brings to capital markets
What Deloitte Audit & Assurance audit profession as well. Today’s complex
business environment requires that the
audit be dynamic, multidimensional, and
financial statement preparation tool
to optimize our production of annual
reports and taxable income statements
to build the refreshed skillset and proficiency
required by level:
brings to capital markets
• At the core, we have a single, global
insightful. There is a demand for real- for our clients.
mandatory audit technical learning
time, relevant information, and clients
curriculum for auditors, targeting learners
expect audits to evolve as they innovate • Deloitte Direct - Digital platform for online
by level, using a dynamic blend of live
their businesses and processes. While collaboration with clients including new
instructor-led, digital on-demand courses,
traditional procedures still have a place value adding, digitally-enabled market
and on-the-job activities.
Deloitte Global leadership on auditing entities where it serves the including independence and conflicts of in auditing, Deloitte Denmark auditors offerings
The Deloitte Global Audit & Assurance public interest and where Deloitte has interest assessments and considerations are enhancing procedures by making
• All client service professionals are
Leadership Team is led by Jean-Marc Mickeler, the capabilities to perform a quality more use of technology-based analytics, • 42 Deloitte – our new self-service Audit
required to complete at least 20 hours of
Deloitte Global Audit & Assurance Business audit with objectivity and in compliance • Considered the integrity of the potential artificial intelligence (AI) and cloud-based Analytics and Business Intelligence
continuing professional education (CPE)
Leader whose responsibilities include: Network
with applicable ethical and professional description: The teamDeloitte network
client’s management technologies, etc. This is due in part to the platform.
each year and at least 120 hours every
standards. increased automation and effectiveness
three years, through structured, formal
• Developing and driving Deloitte Global Audit innovation5 such data analytics and other tools may Learning and development initiatives6
learning programs, such as internal
Audit & Assurance strategy Deloitte Denmark has detailed policies With The Deloitte Way, Deloitte is bringing provide, but also the need for Deloitte Deloitte’s transformed approach to audit
courses, seminars, or e learning covering
and procedures in place for accepting innovation into the core of how we audit: Systems
Denmark to stay in front of technological delivery is changing the audit experience
all areas of the competency model (e.g.
• Setting audit methodology standards and prospective clients and engagements and with automation that improves routine of quality
advances used by the entities that we audit. for our professionals. Audit teams are
Shared values leadership capabilities, A & A professional
approving audit policy and methodology assessing engagement risk. These policies tasks, analytics that yield a deeper and control & risk empowered by advanced tools and
capabilities, and A & A specialized
changes with the objective of enhancing and procedures are designed with the more insightful view into the data, and management
Innovation is an integral part of the entire technologies and more extensive use of
professional capabilities).
audit quality across the Deloitte network objective that Deloitte Denmark only accepts artificial intelligence that enhances human audit delivery process. data analytics within a guided workflow to
engagements where it: discovery and problem-solving. As a Common execute the end-to-end audit cycle. For
Professional technologies/ • All client service professionals have clearly
• Driving key audit quality initiatives and Methodologies
standards result, clients get an experience that is less Deloitte is committed to the continued
platforms
our professionals, this means focusing
defined role expectations and global Talent
policies across the Deloitte network • Is able to perform the engagement and burdensome, with more transparency and investment in emerging technologies on how the engagement is planned,
Standards outline the capabilities that are
has the capabilities, including time and deeper insight. and diversity of thought that enables the executed, and managed consistently
required of practitioners at each level.
Entities Deloitte audits resources, to do so delivery of enhanced quality, insights, across the globe using forward looking
Innovation is an expectation in today’s and value to our clients and markets. This techniques and capabilities. It also offers Deloitte has also established specific learning
As part of Deloitte Global Audit &
• Can comply with all relevant ethical fast-changing business environment, includes our state-of-the-art analytics opportunities to enhance their technical opportunities for specialists working on audit
Assurance’s commitment to supporting
requirements and professional standards, and this expectation holds true for the platforms, as well as an integrated suite of and professional skillsets and capabilities. engagements to support their knowledge and
the capital markets, Deloitte is focused Audit & Assurance Transformation enabling innovative tools all connected in For example, the following skills become understanding of the audit process. Enhanced
the cloud. Deloitte has released Deloitte more important—enhanced data analytics, project management, a key capability for
Audit & Assurance Transformation Levvia, a tailored solution to support our project management, critical thinking, executing audit engagements, has been
Being a relevant profession of the future and a sustainable practice that The Deloitte Way: small and medium sized audits. communication, enhanced professional included in the annual development
evolves with the pace of change in technology and society is critical. standardisation of judgment, and the application of accounting programs, which provide a blend of technical
audit processes Real-time audit
Driving this goal is the Deloitte Audit & Assurance Transformation quality monitoring Furthermore, Deloitte Denmark has and auditing principles to work more and soft skill learning development.
supported by global
initiative, which is currently being developed and deployed across the deployed several global innovative tools as effectively and deliver higher quality
technology suite
Deloitte network, including Deloitte Denmark. well as locally developed solutions, including: engagements. The objective of the Deloitte Denmark
professional development program is to
Audit & Assurance Transformation is an important shift across the • Deloitte Connect – Online Not only do we deliver value in more help partners and practitioners maintain
Enhanced talent
network in the way Deloitte professionals work and includes: Agile deployment of communication, information sharing, and areas, but as capabilities and skillsets are and enhance their professional competence
model which includes
tools and progress tracking of audit deliverables. enhanced, we build greater confidence and and ensure consistency of audit execution.
learning, rewards and
technologies to become ever-better evaluators of risk. To supplement on-the-job development,
recognition, centres
respond to changing • Icount – Mobile-enabled solution to Deloitte Denmark provides formal continuing
of excellence, and
environments support auditors on inventory counts Deloitte has made substantial investments professional development programs in
delivery centres
in talent and learning strategies and relevant subject areas consistent with the
• FACT – DK developed, cloud-based transformed the technical audit curriculum Deloitte Global Audit & Assurance Curriculum.
5 Audit innovation
For more information about Deloitte audit innovation, please refer to Global Impact Report. 6
EU transparency reporting requirement: a statement on the policy followed by the audit firm concerning the continuing education of statutory auditors.
18 192021 Transparency Report |
What Deloitte Audit & Assurance brings to capital markets 2021 Transparency Report |
External and internal audit quality monitoring
Deloitte University
Deloitte actively cultivates its collective
knowledge and skills of Deloitte
In accordance with global policies, Deloitte
Denmark’s partners are evaluated
on a yearly basis, and depending on
External and internal audit
quality monitoring
professionals globally through continued the outcome of the evaluation, the
investement in Deloitte Universities (DU). remuneration of partners may increase or
These are state-of-the-art learning and decrease. Specifically, partner evaluations
development centres focused on Deloitte take the following factors into account:
culture, and rooted in the principles of
connectedness and leadership in a highly Quality: Uncompromising quality in all
inclusive learning environment7. professional work
Risk: Consistent and strong contributions
Audit Quality Monitoring & Measurement
across all areas of risk
A continued focus on audit quality is of paramount
Performance: Strong performance against importance to the Deloitte brand. It is critical that a
Audit Quality Monitoring
key metrics and objectives Deloitte audit is consistently executed and of high & Measurement
quality, wherever in the world it is performed.
Leadership: Demonstration of strong
leadership skills and partner behaviours Engagement reviews
The objectives of the Deloitte Global Audit Quality
which reflect the organisation’s culture
Monitoring & Measurement (AQMM) program are to:
Partner remuneration8 Clients: Client portfolio managed and roles • Transform the way audit quality is monitored and
performed In-flight System of
Execution of high quality audits is expected measured and audit deficiencies are resolved; and
monitoring quality control
from all professionals and is embedded
Business: Shaping and delivering on the • Enhance the internal system of quality control which
across the Deloitte network. Audit quality is
firm’s strategic and financial plan all Deloitte network firms follow
recognized through reward and recognition
programs and is built into performance People/Talent: Contributions across all
standards at every level, against which aspects of talent management, including The AQMM program is focused on driving:
professionals' overall evaluations are people development, coaching and • Continuous, consistent, and robust monitoring of
measured. mentoring completed and in-flight engagements
Stewardship: Thought leadership, • Fundamental understanding of deficiencies and
innovation and brand protection roles timely execution of corrective actions by all member
Collaboration: Working across the firm firms consistently
and being inclusive of other partners and • Greater transparency and consistency in reporting
our people. key measures of audit quality
External
Remediation
inspections
Deloitte Denmark maintains policies and procedures to
promote an internal culture based on the recognition
that quality is the number one priority. Deloitte
Casual factor analysis
Denmark focuses on professional excellence as the
foundation for achieving audit quality on a consistent
basis.
7
For more information about Deloitte Universities, please refer to Global Impact Report.
8
EU transparency reporting requirement: information concerning the basis for the partners' remuneration in audit firms.
20 212021 Transparency Report |
External and internal audit quality monitoring 2021 Transparency Report |
External and internal audit quality monitoring
findings. An audit quality plan is prepared by Deloitte Based on the quality control performed, the Business
Denmark and provides for effective implementation Authority has decided to close its review without any
and monitoring of key audit quality priorities. further follow-up, refer to Danish Public Accountants
In-flight monitoring System of quality control (SQC) review Act S 35a(1)(1).
Continuous audit quality monitoring by Deloitte SQC review includes numerous elements such as
Denmark drives a faster response to audit issues on documenting key areas of the SQC processes and Therefore, the Business Authority considers the 2020
"in-flight" engagements, driving identification, timely controls and performing procedures for testing the quality control closed."
solutions, and real time corrective actions achieved by: operating effectiveness of the SQC, including execution
of a comprehensive SQC review program. External inspections9 We concur and are pleased with the Danish Business
• Deployment and monitoring of a series of core In addition to our own monitoring of audit quality, we Authority’s conclusion.
diagnostics, enabling engagement partners and Deloitte is also preparing for the future by focusing are subject to external reviews by the Danish Business
teams, as well as Deloitte Denmark audit quality on readiness activities for monitoring related to Authority (DBA) and the US Public Company Accounting The Public Company Accounting Oversight Board
leaders to continuously monitor audit quality and take implementation of ISQM1. These preparations are Oversight Board (PCAOB). (PCAOB) conducted together with the Danish Business
immediate action. further advancing quality control processes and the Authority a joint inspection of Deloitte in the spring
approach to monitoring, and continually strengthening The results of the latest inspection by the DBA were of 2019. The final inspection report was received
• A program of subject matter specific “health checks”
our culture of continuous improvement. published in September 2021. The conclusion from the in February 2021 and contained some significant
to assist Deloitte Denmark audit quality leaders in
DBA was the following: observations regarding the performance of the audit
assessing progress and identifying potential issues on
Audit Quality Indicators (AQIs), used in conjunction of two of the controlled engagements and the internal
in-flight engagements.
with other metrics, further assist Deloitte Denmark in "Nothing has come to the Business Authority’s attention quality control system. We concur with the conclusion
• Performance reviews of live engagements which developing and monitoring audit quality action plans that causes it to believe that the Audit Firm’s policies and we have immediately taken remedying measures.
allows Deloitte Denmark to proactively identify and and reporting on the progress in its audit quality and procedures for monitoring and evaluation of the Deloitte has a 12-month deadline to respond to the
remediate any quality issues throughout the audit. journey. AQIs are integrated with ongoing AQMM quality control system are not adequate given the final report from the PCAOB and to indicate the actions
activities. firm’s size and operation characteristics. Nothing has implemented to address the remarks.
• In-flight monitoring results are evaluated overall to
come to the Business Authority’s attention that causes
determine whether additional communication and
In addition, proper timing and sequencing of audit it to believe that the latest and previous monitoring and Statement on the effectiveness of the functioning
support is needed for audit engagement teams with
activities, including timely reviews of work performed evaluation of the quality control system and assurance of the internal quality control system10
respect to adherence to the audit methodology or
and the resolution of matters identified, are closely engagements were not adequate given the firm’s size We confirm that we are satisfied that our internal quality
updates thereto.
associated with high quality audits. Audit Quality and operation characteristics. controls and systems are robust, operate effectively,
Milestones are intended to drive consistency of and allow us to readily identify any areas of potential
engagement teams in project management, timing In its review of assurance engagements, nothing has enhancement. We continually seek to refine all aspects
of when work is done, and necessary focus on come to the Business Authority’s attention that causes of our business and we use the findings of the practice
engagement staffing, including sufficiency and the skills, it to believe that the assurance engagements reviewed review, other internal reviews and external regulatory
Engagement reviews knowledge, or experience of assigned resources. were not performed in accordance with audit regulation reviews to enhance our system of quality control.
Key components of engagement reviews (internal and the quality control system. In that process, nothing
practice reviews) include: has come to the Business Authority’s attention that
• Risk-based engagement selection and consideration causes it to believe that the quality control system has
of all major industries served by Deloitte Denmark. not been used to an adequate degree.
• Mandatory moderation panel to drive consistency in
Causal factor analysis and remediation
findings and engagement ratings.
Continuous improvement is essential to Deloitte's
• External partners and deputies who oversee practice culture of quality and excellence. Understanding why
reviews to increase global consistency. audit deficiencies occur is critical to the design of
effective actions to remediate findings. Further, actions
• Identifying appropriate resources (from within Deloitte
are taken when audit deficiencies are identified during
Denmark as well as from other Deloitte geographies)
the performance of an audit engagement. Engagement
with the right experience and industry knowledge,
level remediation is imperative to drive continuous 9
EU transparency reporting requirement: an indication of when the last quality assurance review referred to in Article 26 was carried out
including establishing central review teams.
improvement in audit quality and avoid future similar 10
EU transparency reporting requirement: a description of the internal quality control system of the audit firm and a statement by the
administrative or management body on the effectiveness of its functioning.
22 232021 Transparency Report |
Professional development and performance management 2021 Transparency Report |
Professional development and performance management
Professional development and
performance management
Deloitte culture and the design of learning programs Deloitte professionals bring diverse backgrounds,
place people at the forefront. Deloitte professionals are knowledge, and skillsets that enhance capabilities as an
technically proficient with high levels of ethics, integrity, organization in delivering the highest quality audits.
professional skepticism, and objectivity, and are
continuously enhancing their skillset and experience. In addition, operational discipline, effective
management of the business, and the development
Deloitte is committed to delivering an unrivalled of a singular approach to doing audits known as The
talent experience, developing professionals, and Deloitte Way, provide the foundation for Deloitte’s
furthering their careers by creating a life-long learning commitment to bring consistency to our audits.
environment—advancing audit education, skillsets, and
flexible career options that appeal to future auditors. Deloitte is driving a sustainable audit and assurance
business that recognizes and rewards its people and
ongoing investments in their future.
24 252021 Transparency Report |
Independence, ethics, and additional disclosures 2021 Transparency Report |
Independence, ethics, and additional disclosures
Independence, ethics, and and annual and special purpose
independence confirmations to
monitor individuals' compliance with
in compliance with the requirements and
without loss of important knowledge and
experience about the client’s business.
conducted and feedback is collected from
our professionals through an annual ethics
survey.
additional disclosures
independence requirements
Ethics at Deloitte is led by the Deloitte
• Consultation processes including the Confirmation of review of Global Chief Ethics Officer at the global
identification of individuals who are to be independence practices and level, and by member firm Ethics Officers
contacted for independence matters monitoring at the local level, who are experienced
In accordance with Article 13.2 (g) of the EU partners with direct access to the member
and procedures to communicate the • Procedures to identify and analyze Audit Regulation, we confirm that an internal firm’s CEO and governing body. Deloitte
Deloitte Global Independence importance of independence to partners, non-compliance with independence review of our independence practices has Global and member firm ethics leaders
other professionals, and support staff requirements and apply related been properly conducted in the year as a part work together to continually monitor risk
Sets independence policies and procedures based upon the Code
have been adopted, emphasizing each disciplinary measures and actions. of the 2018 practice review. Our internal and and to reinforce compliance with the Global
of Ethics for Professional Accountants issued by the International Ethics
individual’s responsibility to understand global practice reviews and other monitoring Code.
Standards Board for Accountants and the independence standards of the US
and meet the independence requirements. • Independence-related learning and processes provide us with assurance that
Securities and Exchange Commission and the Public Company Accounting
communications these policies are, in general, appropriately Deloitte Denmark maintains policies and
Oversight Board. Performs full reviews of independence quality controls
The Director of Independence is observed and, where exceptions are noted, procedures that build on the global policies
on a three-year cycle; provides an annual focused review program to be
responsible for overseeing independence identify where further action is required. and are designed to provide reasonable
performed by member firms as part of their Audit Practice Review for the off- DESC
matters within the member firm, including In addition, the practice review includes an assurance that its professionals comply
cycle years, and performs in-depth follow-up reviews as needed. Deloitte Entity Search
the design, implementation, operation, assessment of compliance with Deloitte with relevant ethical requirements.
monitoring and maintenance of the system and Compliance Global independence policies and Danish
Performs on-going monitoring activities of firms—enabling continuous
of quality control related to independence. Global, searchable database containing additions. The results of these internal The ethical requirements for audit and
enhancements to global policies, quality controls, tools, and practice
specific entity information relevant in reviews are reported to the Executive team. related assurance services provided by
support activities.
The key elements of the system of quality determining personal and professional Deloitte Denmark are in accordance with
control that Deloitte Denmark implemented independence restrictions Deloitte Denmark Ethics Deloitte Global policies and procedures,
Delivers global systems to provide professionals with entity information
in accordance with global policies include All Deloitte professionals are expected which align with the requirements and
to support compliance with personal and professional independence
the following: to act with integrity in accordance with guidance set out in the international Code
requirements, including financial interests and scope of service approvals.
high ethical standards as described in of Ethics for Professional Accountants
• Engagement acceptance and monitoring GIMS the Deloitte Global Principles of Business issued by the International Ethics Standards
Supports independence awareness across the Deloitte network through Global Independence Conduct (“Global Code”). The Global Board for Accountants, a standard-setting
active engagement with independence and business leadership groups, Monitoring System
• Monitoring long association of partners Code is embedded into each member body of the International Federation of
periodic communications and alerts, and development of guidance,
and professionals with audited entities Application that contains financial firm’s Code of Conduct, and defines the Accountants (IFAC).
learning and instructions.
relationship data with relevant commitments that all Deloitte professionals
• Business relationship assessments and independence compliance indicators make regarding ethical standards, as well as Deloitte Denmark reinforces its
monitoring explaining each individual’s responsibilities commitments to ethics and integrity
Deloitte Denmark Independence11 or regional requirements that may be to their clients, colleagues, and society. through communication tools, learning
Deloitte Denmark has policies and more restrictive than Deloitte Global • Use of independence business process Rotation of key audit partners and programs, compliance processes, and
procedures designed to address policies. Deloitte Denmark leadership tools, including the Deloitte Entity Search professionals12 In addition to the Global Code, other measurement systems. In addition,
compliance with applicable professional reinforces the importance of compliance and Compliance (DESC) system, the The rotation requirements in the Audit Act foundational elements of Deloitte’s ethics Deloitte Denmark requires all partners,
standards that relate to independence. with independence and related quality Service Request monitoring application, states that it is not possible to sign the audit program include global policies, a program other professionals, and support staff to
These policies and procedures are based control standards, thereby setting the and the Global Independence Monitoring report for a public interest entity for more of training and communications, and confirm annually that they have read and
on the Deloitte Global Independence appropriate tone at the top and instilling System (GIMS). than seven years. In Deloitte Denmark, a established reporting channels supported comprehended the member firm's Code
policy, and are supplemented, as its importance into the professional values leadership group monitors the staffing of the by defined incident management protocols. of Conduct and understand that it is their
appropriate, to reflect additional national and culture of Deloitte Denmark. Strategies • An Inspection & Testing program, firm’s public interest entities and ensures For continuous improvement, regular responsibility to comply with it.
rotation of key members of the audit team program assessments and reviews are
11
EU transparency reporting requirements: a statement concerning the audit firm's independence practices which also confirms that an internal review of independence
compliance has been conducted. 12
EU transparency reporting requirements: a description of the audit firm's policy concerning the rotation of key audit partners and staff.
26 272021 Transparency Report |
Deloitte Global Ethics and Integrity Imperative 2021 Transparency Report |
Appendices
Deloitte Global Ethics Appendices
and Integrity Imperative
Deloitte is committed to conducting business with honesty, distinctive quality, and high
standards of professional behavior.
Deloitte’s Global Principles of Business Conduct (“Global Code”) outlines Deloitte’s ethical
commitments as a network and expectations for Deloitte’s approximately 345,000 people, giving a
strong, principled foundation. The Deloitte Integrity Imperative amplifies the Global Code across the
network by empowering leaders to set a strong tone from the top; encouraging people to speak up
when they witness anything that runs counter to the Global Code; and helping Deloitte act quickly
and appropriately in the face of misconduct.
The Deloitte Global Ethics team and member firm ethics
officers work closely with senior Deloitte leaders to build Global Principles of Business Conduct
and enhance the foundations of the network’s ethics
program, which is comprised of the following elements:
Global ethics policies including policies
on Non-Retaliation and Anti-Discrimi-
nation and Anti-Harassment
Reporting channels and incident
management protocol
Elements of the
Deloitte ethics program
Program measurement through
annual ethics survey
Annual assessment and recurring
practice-review program
Ethics learning programs
and communications
28 292021 Transparency Report |
Appendix A | EU/EEA audit firms 2021 Transparency Report |
Appendix A | EU/EEA audit firms
Appendix A | EU/EEA audit firms EU/EEA Member State14
France (cont.)
Name of audit firms carrying out statutory audits in each Member State15
Audalian Commissaire
BEAS
Disclosure in accordance with Article 13.2 (b)(ii)-(iv) of the EU Audit Regulation13
Cisane
EU/EEA Member State (Article 13.2 (b)(iii) EU Audit Regulation: the countries in which each audit firm that is a Constantin Associés
member of the network is qualified as a statutory auditor or has its registered office, central administration or
principal place of business). DB Consultants
ECA Audit
Name of audit firms carrying out statutory audits in each Member State (Article 13.2 (b)(ii) EU Audit Regulation:
the name of each audit firm that is a member of the network). Jacques Serra et Associés
Laurens Michel Audit
EU/EEA Member State14 Name of audit firms carrying out statutory audits in each Member State15
Opus 3.14 Audit Et Conseil
Austria Deloitte Audit Wirtschaftsprüfungs GmbH
Pierre-Henri Scacchi et Associés
Deloitte Burgenland Wirtschaftsprüfungs GmbH
Revi Conseil
Deloitte Niederösterreich Wirtschaftsprüfungs GmbH
Germany Deloitte GmbH Wirtschaftsprüfungsgesellschaft
Deloitte Oberösterreich Wirtschaftsprüfungs GmbH
Deutsche Baurevision GmbH Wirtschaftsprüfungsgesellschaft
Deloitte Salzburg Wirtschaftsprüfungs GmbH
SüdTreu Süddeutsche Treuhand GmbH Wirtschaftsprüfungsgesellschaft
Deloitte Tirol Wirtschaftsprüfungs GmbH
Greece Deloitte Certified Public Accountants SA
Deloitte Wirtschaftsprüfung Styria GmbH
Hungary Deloitte Könyvvizsgáló és Tanácsadó Kft.
Belgium Deloitte Bedrijfsrevisoren / Réviseurs d’Entreprises BV / SRL
Iceland Deloitte ehf.
Bulgaria Deloitte Audit OOD
Ireland Deloitte Ireland LLP
Croatia Deloitte d.o.o. za usluge revizije
Italy Deloitte & Touche S.p.A.
Cyprus Deloitte Limited
Latvia Deloitte Audits Latvia SIA
Czech Republic Deloitte Audit s.r.o.
Liechenstein Deloitte (Liechtenstein) AG
Denmark Deloitte Statsautoriseret Revisionspartnerselskab
Lithuania Deloitte Lietuva, UAB
Estonia AS Deloitte Audit Eesti
Luxembourg Deloitte Audit
Finland Deloitte Oy
Malta Deloitte Audit Limited
France Deloitte & Associés
Netherlands Deloitte Accountants B.V.
Deloitte Marque & Gendrot
Norway Deloitte AS
Poland Deloitte Audyt spółka z ograniczoną odpowiedzialnością spółka komandytowa
Deloitte Audyt spółka z ograniczoną odpowiedzialnością
Portugal Deloitte & Associados, SROC S.A.
13
EU Regulation 537/2014 on specific requirements regarding statutory audit of public-interest entities
14
EU transparency reporting requirement: the countries in which each audit firm that is a member of the network is qualified as a statutory Romania Deloitte Audit SRL
auditor or has its registered office, central administration or principal place of business.
Slovakia Deloitte Audit s.r.o.
15
EU transparency reporting requirement: the name of each audit firm that is a member of the network.
30 31You can also read
