BDO’s Approach to Audit Quality
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BDO USA is excited to release a new report designed to share insights into how our firm is focused on aligning our rapid growth and our expanding public company practice with our foundational values and core purpose and directing the way we maintain and uphold audit quality.
As an accounting and financial services firm that has been serving the public for over 100 years, BDO USA is committed to our core purpose of helping people – our clients, our professionals, our communities – thrive every day. Our commitment to this central purpose is evident in our culture, our values, our relationships, and in how we conduct our audit engagements.
Capital market reliance placed on financial reporting demands a committed focus by audit firms to the performance of quality audits. BDO is accomplishing this through an internal framework that takes into account dynamic external
factors including: the business, regulatory, and competitive environments in which we and our clients operate; accounting and financial reporting complexities; expectations of investors and other stakeholders, including those charged with governance; along with continual need for innovation and sustainability related to environmental, social and financial responsibilities that support capital markets. How our firm then readies itself internally
to address these external factors is demonstrated through the execution of our firm’s “CLIMB” strategy centered on our C
ulture and unity; L
eadership and accountability; I
arket prominence; and B
est in class:
Our report outlines the specific investments and activities that BDO is undertaking to address each of the CLIMB areas:
- Culture and unity focuses on the keys to recruiting, developing, and cultivating top talent and providing an environment of continuous learning and opportunities for professional development.
- Leadership and accountability focuses on the drivers of audit quality inclusive of the structure and oversight of our national audit practice and emphasis on independence and ethics as cornerstones of accountability.
- Innovation focuses on the design and enhancements being made to our global audit methodologies; tools; and policies and the establishment of national functional resources to support the growing technical demands of our audit practice and adapt quickly to needs of our clients and evolving requirements of regulators and other stakeholders.
- Market prominence focuses on the growth and depth of experience that our professionals bring to bear in serving our clients both domestically and internationally and ensuring that we are active participants in the profession as both contributors and advocates for audit quality.
- Best in class focuses on the calibration of audit quality through a variety of activities including:
- accepting and retaining highly ethical clients;
- closely monitoring the supervision and review processes of our engagements;
- encouraging consultation with specialists and the exercise of professional skepticism and judgment;
- investing in and taking seriously the lessons learned through robust internal and external inspection programs and quality assurance reviews;
- actively promoting the auditing profession through participation in professional task forces to address risks and providing outreach to students considering a career in auditing;
- engaging in frequent communications and providing education and resources to those charged with governance at our clients and contacts including board of directors and financial reporting and accounting staff and executives; and
- rewarding our professionals’ behavior that supports audit quality and being recognized by the marketplace for creating a culture and environment which supports both our professionals and our clients.
We invite you to read our Approach to Audit Quality
and get to know BDO, as we share insights that reflect our firm’s core values, people, and framework for continuous improvement and embedding quality in all that we do.