{ "docId": "019dd923-5ca1-7489-b63a-1fa9253061d3", "docSlug": "4c338f628428a490", "documentTitle": "Annual Report 2018", "authorId": "PwC", "authorName": "PwC", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.776, "pageNumber": 24, "pageCount": 136, "prevPage": 23, "nextPage": 25, "slideType": "key_messages", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "This is a page from an annual report, featuring a navigation sidebar and a multi-column text body.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b63a-1fa9253061d3/24", "deckHref": "/decks/019dd923-5ca1-7489-b63a-1fa9253061d3", "deckJsonHref": "/decks/019dd923-5ca1-7489-b63a-1fa9253061d3.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b63a-1fa9253061d3#slide-24", "components": [ { "bbox": null, "kind": "callout", "text": "We consider the views of our stakeholders and their stakeholders in all the choices we make. In doing so, we sometimes face dilemmas.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-d9f4-73c3-b02d-7a45252e82eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.235, "x": 0.768, "y": 0.185 }, "kind": "paragraph", "text": "To live up to our purpose, we must consider the impact of our services and service delivery on our clients, on our clients' stakeholders and on society. This means we have to reflect the societal context in delivering our services. For our Assurance practice that works directly for the public interest, but it is also true for Tax & Legal and Advisory. When we advise on an international tax structure, it is not good enough to look only at compliance with law and regulations. The societal perspective on the level of taxes paid and in what jurisdictions it is paid has become even more relevant. When we help our clients with their (digital) transformations, our purpose requires us to put the processes, systems and risks we advise on in a broader context through the eyes of our client's stakeholders. Only then can we create value for our clients and serve the public interest at the same time. We do not compromise on quality. We comply with laws and regulations and we have a Tax Code of Conduct that sets limits on what we advise. Sometimes, however, the acceptance or execution of a project may require more specific consideration. Consequently, we have several (sometimes mandatory) consultation procedures in place. For example, we have a Tax Policy Panel, which reviews proposed tax advice within the context of the Tax Code of Conduct and assesses the impact it could have on society at large.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1bea9c83-a55f-453e-813a-26528a22d546", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.235, "x": 0.417, "y": 0.167 }, "kind": "paragraph", "text": "In recent years, both we and the sector as a whole have invested in closing the performance gap in audit quality. We are spending more time on the audit and on the documentation in the files, and we have raised levels of consultation and learning within our organisation. Our efforts are primarily aimed at transforming ourselves into a purpose-led and values-driven organisation that puts our societal role at the centre of what we do. It has become increasingly clear that the right culture, mindset and behaviour are essential drivers of quality - not only for us as auditors but also as (tax) consultants. But we need to do more in order to restore public trust. We must be open and transparent about the dilemmas in our industry and within PwC. Like in many industries, our business model and the way we are organised involve risks that need to be mitigated. We acknowledge that the ways of working, both within our organisation and within the sector as a whole, can involve harmful incentives that may impact our audit quality and independent mindset. It is important that we identify these incentives and appropriately mitigate the risks that result from them. However, we must also acknowledge that mitigating measures themselves may involve new incentives and new risks. We need to have an honest dialogue in order to strike the right balance between these risks and the related mitigating measures.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2594dcf3-be21-4be0-a3ba-b35295781671", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.235, "x": 0.171, "y": 0.209 }, "kind": "paragraph", "text": "We consider the views of our stakeholders and their stakeholders in all the choices we make. In doing so, we sometimes face dilemmas. We are learning that we must be transparent about these dilemmas, about the way we approach them and how we deal with them. There are no easy solutions for the dilemmas we face, and that is why it is so important to have an open and continuous dialogue with our stakeholders. In this paragraph, we elaborate on a number of the key dilemmas we face.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "719710ef-fedc-43eb-8cf8-9e25562af644", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.235, "x": 0.663, "y": 0.145 }, "kind": "paragraph", "text": "Furthermore, to restore public trust in the profession, it needs to be clear to stakeholders what an unqualified auditor's report entails - but, importantly, also what it does not entail. The primary responsibility for continuity, fraud and compliance with laws and regulation rests with the entity's management and the supervisory board. It is the auditor's responsibility to identify and address risks related to continuity and material misstatement, whether unintentional or resulting from fraudulent reporting, misappropriation of assets or bribery and corruption. But, at the same time, undetected fraud or unexpected bankruptcy do not necessarily or automatically mean that the auditor's performance has been inadequate. We are actively contributing to the debate with internal and external stakeholders to address the expectation gap that may exist in these areas. We realise that we also have a responsibility within the sector at large, and in this context we are an active participant in the NBA initiative on the Change Agenda Audit ('Veranderagenda Audit'). We are also engaged in a more fundamental analysis of the business, partner and earnings models. Since the NBA published its green paper on structural models, the MCA and other stakeholders have urged us to get into this more deeply and identify ways in which we can further mitigate harmful incentives.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "816e4516-b98c-4fce-b60c-25aa59797fb8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.028, "w": 0.125, "x": 0.171, "y": 0.145 }, "kind": "title", "text": "Dilemmas", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4c669e3e-19b4-477b-8da7-3be0ad0f2772", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.016, "w": 0.145, "x": 0.417, "y": 0.145 }, "kind": "title", "text": "Sector-specific dilemmas", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5aaebe51-4ac6-49d2-800a-26eb39c4ff6f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.032, "w": 0.13, "x": 0.768, "y": 0.145 }, "kind": "title", "text": "Converging public and client interests by becoming purpose-led", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de1a89ff-6205-4b64-86e7-b8c6b7fd98d0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 71, "from": 14, "beatId": "bb779c68-468c-42bb-8e53-79a4f550b8cd", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Report of the Board of Management", "beatSlug": null, "evidence": "The report of the Board of Management provides detailed information on PwC's strategy, achievements, and financial performance.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }