A message from our leadership
We are pleased to present the 2022 audit quality report of Ernst & Young LLP (EY US or the Firm). Our commitment to audit quality is unwavering, and it motivates us to continuously improve. We invite you to read the highlights below and download the full report to learn more about the actions we have taken over the past year as well as our investments to enhance consistency and drive audit quality over the long run.
Audit quality: key focus areas
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- Reinforcing the cornerstones of our audit culture: independence and objectivity, integrity, professional skepticism and accountability
- Continuously innovating to attract, retain, develop, support and inspire our people
- Continuing to promote diversity, equity and inclusion
- Enhancing our audit approach to drive greater consistency
- Reinforcing the importance of project management
- Instilling a continuous improvement mindset on our audits
- Expanding our use of audit technology
- Expanding our use of data to manage risks in our audit portfolio
- Continuing to strengthen our system of quality control
- Focusing on ESG, cybersecurity and other emerging topics
A snapshot of key metrics
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10,750 US audit professionals, by rank, including 66% seniors and staff, 23% senior managers and managers, and 11% partners and managing directors.
US professionals by rank who are women
Partners and managing directors: 34%
Senior managers and managers: 48%
Seniors and staff: 50%
US professionals by rank who are racially and ethnically diverse
Partners and managing directors: 13%
Senior managers and managers: 28%
Seniors and staff: 36%
46% of our newly promoted US audit partners and managing directors are women. 25% are racially and ethnically diverse professionals.
Four of the seven partners who manage our audit practice at the regional level are women or racially and ethnically diverse.
Innovating and executing high-quality audits
1:6 ratio of Quality Network and Professional Practice partners and managing directors to audit partners and managing directors.
17.8% of US public company audit hours are generated by EY US specialists, including 10.7% by IT, 4.7% by Tax, 1.4% by Valuation and 1.0% by other specialists.
Highlights of the report
We embrace our responsibility to deliver audits that promote trust in the capital markets and investor confidence, and we strive to continuously improve audit quality.
Learn more about how we are reinforcing the cornerstones of our audit culture and strengthening our system of quality control.
We are laser-focused on fostering a continuous improvement mindset in our teams to drive consistency in how we apply our audit methodology, manage our audits, and use innovative technology to analyze data and focus on key risks in our audits.
Learn more about our digital audit approach and how we are equipping our teams with the right skills and tools to drive audit quality.
We are committed to maintaining an environment where our people can do their best work, including prioritizing in-person experiences and advancing diversity, equity and inclusion through initiatives focused on career access, mentorship and opportunities.
Learn more about how our focus on wellbeing and professional development enables our people to become transformative leaders.
We provide coaching, interpretive guidance and enablement, and technical support in the form of consultations to help our teams with difficult accounting, auditing, and SEC and other regulatory matters.
Learn more about how our Quality Network, Professional Practice group and other resources support our audit teams.
Monitoring the effectiveness of our actions and conducting robust root cause analyses of positive and negative audit performance are key components of our system of quality control. We review certain audits before we issue our auditor’s reports and conduct internal inspections of others after we issue our reports.
Learn more about how we monitor our audit practice to inform our efforts to continuously improve audit quality.
The PCAOB inspection process provides us with valuable information we use to drive continuous improvement in our audit approach and to strengthen our system of quality control.
Learn more about our PCAOB inspection results and the actions we are taking to drive audit quality.