Delivering audits of the highest quality Transparency report · Deloitte SEA, comprising practices in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore,

Delivering audits of the highest qualityTransparency reportThailand

December 2016

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Brochure / report title goes here | Section title goes here

Delivering audits of the highest quality | Transparency report

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A message from our leadership 04

About Deloitte Thailand 06

Our Quality Indicators 09

Ethics 10

Independence 11

Deloitte Thailand’s Anti-Corruption Statement 13

Client and engagement acceptance 14

Deloitte’s audit approach 15

Investing in our people and development 22

Hiring and retaining the best talent 23

Performance management and remuneration reinforce our values and accountability 26

Communication with clients 27


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A message from our leadership

Deloitte member firms are dedicated to delivering professional excellence and consistently performing audits which are of the highest quality. Our people are committed to serving investors and the capital markets, and to building confidence in the independent audit process.

At Deloitte, we actively promote a culture of openness through dialogue and active involvement by the firm leadership. We are committed to the highest levels of ethics, integrity and quality. This is evidenced by our business practices and client service standards, our leadership behaviour and shared values, and most importantly, by the quality of the people we employ.

Our purpose is to make an impact that matters to our clients, our people and our society. We serve our clients by bringing innovative insights and helping them to solve complex challenges. Our shared values - integrity, outstanding value to markets and clients, commitment to each other and strength from cultural diversity - guide the way we behave to make a positive, enduring impact.

In our first Deloitte Thailand transparency report, we provide information on the principles, policies, standards and actions we have implemented in our audit practice. We hope it will offer you a deeper understanding of our continued commitment to quality and our steadfast adherence to high ethical principles and professional standards.


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“At Deloitte, audit quality is our foundation and our number one priority. We have implemented policies and procedures to foster a culture based on quality and integrity”

Subhasakdi Krishnamra Country Managing PartnerDeloitte Thailand

“We consistently engage with our regulators and stakeholders on audit quality to emphasize our commitment to professional excellence in executing high-quality audits”

Permsak WongpatcharapakornAudit LeaderDeloitte Thailand

Subhasakdi KrishnamraCountry Managing Partner

Permsak WongpatcharapakornAudit Leader


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About Deloitte ThailandDeloitte Thailand is part of Deloitte Southeast Asia (SEA), a member firm of Deloitte Touche Tohmatsu Limited. Deloitte Touche Tohmatsu Jaiyos Co., Ltd. and each of its primary subsidiaries – Deloitte Touche Tomatsu Jaiyos Audit Co., Ltd., Deloitte Touche Tohmatsu Jaiyos Advisory Co., Ltd. and Deloitte Touche Tohmatsu Jaiyos Accounting Services Co., Ltd. – are private company limited registered under the laws of Thailand. These subsidiaries provide audit, risk advisory, tax, consulting and financial advisory services. Each of the subsidiaries operate as a separate legal entity with its own management to align with the way we conduct our business. Each of these subsidiaries is owned, directly or indirectly, by Deloitte Touche Tohmatsu Jaiyos Co., Ltd. and by the partners who actively participate in the practice.

Deloitte Thailand Structure

Board of Directors

Country ManagingPartner

Ethics OfficerReputation &Risk Leader

Firm

leve

lBu

sine

ss u

nits

ConsultingServices

Risk AdvisoryServices

Audit & AssuranceServices

Tax & LegalAdvisory Services

Financial AdvisoryServices

Operation Support:• Human Resources• Information

Technologies• Finance

Deloitte Touche Tohmatsu Jaiyos Co., Ltd. facilitates the coordination of the activities of its subsidiaries and has a management structure and a Board of Directors to provide governance across the organization. Deloitte Touche Tohmatsu Jaiyos Co., Ltd. does not provide services to clients; services are performed by each of the primary subsidiaries.

The Board provides oversight and guidance to the management regarding operation and long-term strategy. The Board also reviews and approves actions on a variety of governance, operational and administrative matters. Deloitte Thailand has the full support and commitment of its Board of Directors and management team for its focus and dedication to Audit Quality.


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Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd. is the subsidiary of Deloitte Touche Tohmatsu Jaiyos Co., Ltd. that provides audit, other attest services and audit advisory services to clients and is registered with the Federation of Accounting Professions under the Royal Patronage of His Majesty the King to perform audit services.

Business Unit Structure: Audit & Assurance Services

Audit & AssuranceLeader

Deputy Audit &Assurance Leader

Partners and audit professionals

Audit RiskLeader National Professional

Practice Director

Consumer &Industrial Products

Life Sciences& Health Care

FinancialServices Industry

Technology, Media andTelecommunications

Support teams:• Learning• Manpower• Counselling• Audit advisory

• Engagement quality control review• Accounting technical• Auditing technical• Collection

• Engagement quality control review• Acccounting & auditing technical

consultation• Audit Quality Monitoring

Energy &Resources

PublicSector


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Thailand

Myanmar

Philippines

Indonesia

Malaysia

Vietnam

Guam

Lao PDR

Singapore

Brunei

Cambodia

Working As One to deliver quality services in the regionDeloitte SEA, comprising practices in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, delivers measurable value to SEA’s fast growing companies.

We are one Deloitte for the SEA marketplace, and clients reap the benefit of our combined pool of expertise and specialist skills. Working As One, we provide excellent, seamless service across SEA.

We are also able to tap on the resources and expertise of Deloitte’s global expertise and resources. This includes the Global Center of Excellence for Audit Quality which supports Deloitte’s ambition to lead the profession in audit quality and provides centralised support to member firms.

Our commitment to qualityQuality is our shared number one priority and Deloitte Thailand has implemented policies and procedures to foster a culture based on quality. We believe that professional excellence is the foundation for achieving consistently outstanding audit quality.

Our people are dedicated to serving investors and the capital markets, and to building confidence in the independent audit process. Consistent with our commitment to professional excellence, we are guided by a disciplined approach to audit quality that encompasses the entire scope of organisational motivations and behaviours .


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Note:Engagement Quality Control Review (EQCR)Greater Than Normal (GTN)Public Interest Entity (PIE)Thai Standard On Quality Control 1 (TSQC1)The Securities and Exchange Commission of Thailand (Thai SEC)1 June 2014 to 31 May 2015 (FY15)1 June 2015 to 31 May 2016 (FY16)

6:1 (FY15 and FY16)

100%passing rate

for years 2015-2016

Thai SEC engagement

level inspections

TSQC1inspections

“Very good” for years 2015-2016

inspection

% of EQCR time involvement / total engagement hours for PIE and GTN risk engagements

0.8%(FY15

and FY16)

% of Partner & Manager

time involvement in engagement for PIE and

GTN engagements

21% (FY15 and FY16)

18% 19%

FY15 FY16

Staff turnover rate

Average training hoursper person

FY15 FY16

115105

Staff/ Partner & Manager headcount

Leve

l

Enga

gement

passed

Contr

ol

Quality

very go

od

Our Quality Indicators


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Ethics

An auditor’s personal ethical attributes, values and behaviour are crucial to professional excellence and the delivery of a high quality audit. At Deloitte, our professionals are expected to act with integrity in accordance with high ethical standards and we have also implemented policies and procedures to foster a culture of integrity and quality.

The Deloitte Global Principles of Business Conduct (“Global Code”) outlines the ethical commitments that each of us make. It is based on our Shared Values and reflects our core belief that, at Deloitte, ethics and integrity are fundamental and not negotiable. High ethical standards are maintained through a set of policies and programs that is common across all Deloitte practices in SEA including Thailand. Each and every Deloitte personnel is called upon to understand and comply with our Code that specifies expectations for all personnel regarding ethics and compliance standards. Our policies and procedures are aligned with the requirements and guidance of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) and the Federation of Accounting Professions of Thailand (FAP).

Our firm’s commitment to ethics and integrity is reinforced through communication tools, learning programs, compliance processes and measurement systems. We take ethical concerns seriously and have in place sanctions that may be applied for unethical behaviour.

Our Code unifies ethical commitments across the Deloitte SEA entities and provides the foundation and guidance on our decision making process and associated actions that may be taken.

Our Ethical Principles address three categories of Deloitte stakeholders – our clients, our people and our society.

We commit to serving clients with distinction

We commit to inspiring our talented professionals to deliver outstanding value

We commit to contributing to society as a role model for positive change

• Integrity • Quality • Professional behaviour • Objectivity • Competence • Fair business practices • Confidentiality and data protection

• Respect, diversity and fair treatment

• Professional development and support

• Anti-corruption • Responsible supply chain • Social responsibility

At Deloitte, our professionals are expected to act with integrity in accordance with high ethical standards

Our Ethical Principlesit starts with Intergrity


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Independence An important element of audit quality is the auditor’s independence of the entity being audited since auditors must be objective and exercise an appropriate level of professional scepticism. To ensure the independence of our firm and our professional staff, we have the following programs and processes:

• Individual compliance and monitoring – We have mechanisms in place that regularly reassess an audit professional’s independence so that appropriate action can be taken immediately should any violation of policy occur.

– Our independence requirements apply to all personnel, whether or not they are directly involved in delivering audit services.

– We obtain confirmations from all personnel on independence on an annual basis.

– We communicate our consultation policies for independence matters to all personnel and identify who they should contact for consultation.

– We provide independence learning which is compulsory for all our personnel. Independence, confidentiality and ethics learning programs are conducted in both e-learning and facilitator-led programs.

We have mechanisms in place that regularly reassesses an audit professional’s independence so that appropriate action can be taken immediately should any violation of policy occur.


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Our audit partners and professional staff inspected in the last 12 months complied with FAP's and IESBA's independence requirements set out in the Code of Professional Conduct and Ethics.

Deloitte fully complies with the FAP's and IESBA's independence requirements for the provision of permissible non-audit engagements to audit clients.

• Inspection of advisory services – To confirm that the advisory engagements undertaken for audit clients do not impact our independence, we have a program whereby we select a sample of engagements on a regular basis and inspect them to ensure that those services are permissible under the independence rules and that they have been approved by the audit partner and audit committee and that the documented terms of the engagement are consistent with the deliverables.

• Business relationship assessments and monitoring – Prospective business relationships are submitted for centralised clearance before they are accepted. In addition, our relationship with vendors and other parties are regularly assessed to confirm that these business relationships do not impact our independence on any audit engagements.

• Monitoring of independence systems and controls – Before engaging with an entity, we will confirm that it is not a restricted entity. To facilitate this process, our partners, senior managers and managers are required to enter their, and their immediate family members’, financial interests and brokerage accounts into a tracking system.

• Inspection of personal independence – To assess ongoing compliance with independence policies and procedures, we have established an inspection program of the financial affairs of our partners and professional staff which determine whether the information that they maintain in our trading system is accurate and complete.

– To set the tone at the top, our leadership partners are tested on an annual basis with the remainder of our partners being tested at least once every five years. At least five percent of our professional managerial staff are inspected for compliance with independence policies and procedures on an annual basis.

– We take a serious view of breaches against independence policy requirements and impose sanctions for non-compliance.

NoteFederation of Accounting Professions of Thailand: FAP

International Ethics Standards Board for Accountants: IESBA


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Deloitte Thailand’s Anti-Corruption statement

Thailand’s Collective Action Coalition Against Corruption (CAC) is an initiative by the Thai private sector to tackle corruption via collective action. The CAC aims to encourage companies to implement anti-corruption policies and mechanisms to create an ecosystem of clean business.

We have been a full member of the CAC since April 2015 and we are committed to the CAC declaration on anti-corruption and have put in place good business principles and controls against bribery.

We strongly believe in doing business with integrity and supporting the fight against all kinds of corruption. Our partners and employees are expected to conduct themselves with honesty, fairness and high ethical standards. They are also expected to abide by all anti-corruption laws and avoid any impropriety or conflict of interest.

We have in place an Anti-Corruption Policy that applies to all our partners and employees who are required to read, understand and adhere to the policy.


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Client and engagement acceptance

We follow stringent policies and procedures to assess the risks related to an assignment before agreeing to accept a prospective client and engagement. Our objective is to accept only engagements with an acceptable engagement risk level.

In assessing the acceptability of an engagement, we consider client and professional service risks, which generally include the following factors:

Our engagement risk assessments are an ongoing process. They begin with the engagement acceptance and continue throughout the engagement. We also incorporate risk assessment tools and programs in our audit approach and documentation to facilitate a comprehensive risk assessment when planning our audit after agreeing to accept the engagement.

Our engagement risk assessments are an ongoing process that begins with the engagement acceptance and continues throughout the engagement.

Prior knowledge and experience

Business relationships

and related parties

Financial results

Organisational and management structure

Nature of the business

Business environment

Management characteristics and integrity


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Deloitte’s audit approach Through strong partner leadership, upfront planning and a focus on significant risks, Deloitte delivers a “no surprises” quality audit.

Our audit methodology is a partner-led, risk-based model built on professional judgment which supports a quality, efficient and effective audit. This is because we believe that early involvement by partners gives clients the assurance that the audit will be effective and focus on the areas of greatest importance. It will also quickly identify and resolve pressing matters. Through strong partner leadership, upfront planning and a focus on significant risks, Deloitte delivers a “no surprises” quality audit.

Our audit approach includes requirements and guidance to assist in the planning and performance of audit engagements and is based on the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) of IFAC. The Thai Standards on Auditing (TSA) are aligned with the ISAs.

Common documentation and enabling software technology are tools that enhance the consistent implementation of our audit approach and promote effectiveness and efficiency.


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• The source data used • The assumptions and methods used and, if appropriate, their consistency with those used in the prior period

• The results of the expert’s work in light of the engagement team’s overall knowledge of the business and of the results of its audit procedures.

Engagement documentationDeloitte Thailand maintains policies and procedures to

support the assembly and archiving of audit files. The audit engagement team will submit the audit files for archiving generally within the shorter of (1) 60 days from the date of the report or (2) the period set out in applicable professional standards and regulatory and legal requirements.

Our policies and procedures address the retention of documents (in paper and electronic form), including those that address the confidentiality, safe custody, integrity, accessibility, and retrievability of archived documentation.

Engagement team reviewsReviews of the audit documentation will be performed

by members of the engagement team who have more experience than the preparer. In some cases, elements of audit documentation may be reviewed by several team members.

Audit proceduresOur engagement teams develop the audit plan to address the

risks associated with the entity, the audit engagement, and the financial statements as a whole. Throughout the audit, engagement teams will continually assess risk and how audit findings bear on the audit procedures. Should any issue arise during the course of the audit, our partners and professional staff will modify the audit procedures to address such issues.

To address the risks of material misstatement, we may adopt a control reliance audit approach or adopt a substantive approach which comprise tests of details and substantive analytical procedures.

Use of expertsWhile the audit engagement partner retains responsibility for

all aspects of the engagement, there are instances when the engagement team utilises an expert. In such instances, the engagement team will evaluate whether the expert has the necessary competence, capabilities and objectivity.

In evaluating whether or not the expert’s work constitutes appropriate audit evidence in support of the financial information, the engagement team considers:

Understanding the entity and its environment

A good understanding of the entity and its environment, including its internal controls, is vital to performing an effective audit. Our engagement teams develop this understanding and assess risks of material misstatement in a number of ways and this includes analysing financial information to identify trends and unusual balances and holding in-depth discussions with management and those charged with governance. We consider the inherent nature of each financial statement component and its associated risks, evaluate the design of relevant internal controls and determine if they have been implemented. We also assess the extent to which technology is used in the financial reporting process, and, if applicable, review internal audit findings.

Based on the nature of the entity’s information systems and the extent to which technology plays a role in the transaction processing and financial reporting processes, information technology specialists may be involved in the audit engagement where necessary.

Main elements of our audit approachThe main elements of our audit approach include the following:


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Assignment of partners and professional staff to audit engagementsWe have policies and procedures in place to ensure that partners and professional staff assigned to audit engagements are able to carry out their roles and responsibilities competently and proficiently.

An audit engagement partner is appointed for each audit engagement and his or her responsibilities which are defined in the firm’s policies, are communicated to him or her. Key individuals of the client’s management team and those charged with governance are informed about who their audit engagement partner is as well as his or her role.

The engagement team will be developed based on the size, nature and complexity of the client’s operations but will usually comprise an audit engagement partner, audit director, audit manager, field senior and other staff who will carry out the following roles: • The audit engagement partner will direct and supervise the engagement team and will be responsible for the conduct of all audit services.

• The audit director/ manager will provide primary supervision and direction to the professional staff in the execution of the audit plan and in the performance of the audit engagement.

• The field senior is responsible for the day-to-day supervision and guidance of the other members of the engagement team.

The audit engagement partner considers many factors to determine that the engagement team collectively has the appropriate capabilities, competencies, and time to perform the audit engagement and these include: • The size and complexity of the entity’s business • The applicable financial reporting framework used in preparing the financial statements • Applicable independence considerations, including any possible conflicts of interest • The qualifications and experience of professional staff

% Partner-manager time involvement in engagement

Audit partner rotationOur rotation policies require that the engagement partner (Thai SEC signing partner) for the audits of listed entities are rotated after five consecutive years of service. For other key audit partners involved in the audits of listed companies and other public interest entities, the rotation requirement is seven years. A time-out period of at least two years is required before those partners are permitted to return to serve the listed entities.

Our partners performing the engagement quality control review (EQCR) for listed companies and other public interest entities are required to rotate every seven years and are subject to a two year time-out period. The required periodic partner rotation is an important practice that helps us maintain our objectivity, fresh perspective and professional skepticism on audit engagements.

FY15 FY16

% Partner-manager time involvement in engagement 21% 21%

(FY15: start from 1 June 2014 to 31 May 2015 and FY16: start from 1 June 2015 to 31 May 2016)


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Robust quality control practicesOur structured Engagement Quality Control Review (EQCR) process is a key component of our audit process. Our policy defines the scope, objectives and procedures that should be performed on all audits of financial statements as well as on all other audits and reviews of historical financial information and other assurance and related services engagements. A quality control review is performed for audit engagements and related assurance service engagements with limited exceptions.

We have a centralised team comprising partners, directors and specialists who perform quality control reviews. The quality control reviewers are partners or directors who are not members of the engagement team and who have no direct involvement in the engagement. They have the appropriate experience and knowledge about applicable accounting and auditing standards and regulations, as well as the entity’s industry, economic environment and accounting principles.

Quality control reviews for public interest entities are carried out under the direction and supervision of an EQCR partner. The audit plan of public interest entities and high risk engagements will be reviewed by the quality review team before the commencement of audit substantive work. The feedback from this team will impact the performance ratings and ultimate compensation of professional staff and partners.

A root cause analysis will be carried out on the quality review team’s findings to understand the issues which arise and to evaluate whether additional guidance or training are needed on key areas.

% EQCR time involvement/Total engagement hours

One of the firm’s strategy in enhancing our audit quality includes placing our senior and experienced partners and directors in the quality control functions. At least 12% of the firm’s audit partners and directors are involved in the firm’s quality control functions to continuously equip them with tools, knowledge and resources to consistently deliver a quality audit.

FY15 FY16

% EQCR time involvement/Total engagement hours 0.8% 0.8%


We are committed to invest in resources and tools to continuously enhance the quality of our talent and audit practice. Our investment in various quality control functions include risk management; independence and ethics; learning and development; and technical and quality assurance. We have trained and developed full time subject matter experts in each of these areas who are fully dedicated to assist the firm in raising the bar on quality.


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Tone at the top

Partner / Manager involvement in engagements

Tenure of audit partners, directors, managers

Delivery of sufficient / appropriate learning

Internal, external and regulatory inspections

Staff turnover

Expert / Specialist involvement in engagements

Technical resources

Audit Quality Indicators (AQIs) An integral component of supporting audit quality improvement efforts, the audit quality “indicators” and/or “predictors” provide measurable data on the auditors’ ability and commitment to deliver quality audits.

These audit quality indicators help us monitor and measure improvement in audit quality, and to identify factors that may contribute to or cause practice review and/or external inspection findings.

Our AQIs include the following:


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Audit Imperatives Our Audit Imperatives assist in our execution of the highest-quality audits. They include critical actions and considerations that can be taken on all engagements to achieve the highest standard of professional excellence. With thoughtful and robust implementation of the Imperatives, our people demonstrate a commitment to quality to fulfill our responsibility to investors, capital markets, and other users of the financial statements.

Remain objective and skeptical throughout the audit - challenge areas involving management judgment or transactions outside the normal course of business.

Obtain a thorough understanding of process flows for significant accounts and related disclosures. Identify relevant controls, evaluate their design, determine their implementation, and, when applicable, including (Public Company Accounting Oversight Board) PCAOB audits, sufficiently test relevant controls.

Develop and execute a comprehensive audit project plan to optimise the timing of procedures throughout the audit cycle and innovate audit service delivery.

Apply expertise in areas involving specialists through the tailoring of audit responses specific to the entity.

Remain resolute on directing, supervising, and reviewing the work of component auditors.

Advance professional development through enriching our staff skillset and the skillset of others.

Perform robust risk assessment procedures to appropriately identify and assess the risks of material misstatement and design and execute further audit procedures to respond to the identified risks application of the risk assessment procedures.

We all own quality – individually and together.

Improve proficiency in developing and executing audit plans sufficiently precise to address management override of controls.

2

1

3

4

56

7

89


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Maximising the use of technology to improve our auditTechnology is employed in every aspect of our business and we use state-of-the-art tools to improve our productivity. Our proprietary Engagement Management System (EMS) technology incorporates a cutting edge web-based software platform to enhance coordination and optimise collaboration among our team and with our clients.

This platform allows us to maintain effective control over large complex audits and ensure that the latest technical and industry content are embedded in our audit. As our audit software has the latest accounting and auditing standards as well as other relevant regulatory and reporting requirements, our teams are able to instantly access the technical tools they need to do their job.

We also apply analytics in our audits to further improve quality & efficiency, as well as to add value to our clients through insights identified in this process. We use analytics throughout the audit process, such as risk assessment during the planning phase of the audit, testing controls and identifying trends and patterns (and outliers from those patterns) far more efficiently and across the entire population rather than a sample data. This helps to identify areas of greater audit interest for us to focus our audit on. Analytics can also help to automate certain audit procedures, perform more in-depth substantive analytical review procedures and proof-in-total to derive greater assurance and hence, improving the overall audit quality.

Inspection in place to strive for continuous quality enhancementOur audit practice, including individual audit engagement files, are regularly monitored and inspected by ourselves as well as third parties such as regulators. The objective of these reviews is to identify areas where audit quality may be enhanced, and when such opportunities are identified, we move quickly to implement them.

• Internal inspectionsPractice reviews are performed annually by a specialist team under the supervision of a senior Deloitte partner from Southeast Asia and with oversight from a partner independent of Deloitte Thailand and Southeast Asia. The review scope includes an evaluation of the firm’s system of quality controls and the quality of the audit work performed on the selected engagements. Deloitte’s policy is for all partners to be reviewed over a three year period.

• External inspectionsOur audit practice is subject to external inspections by the Securities and Exchange Commission of Thailand (Thai SEC) to assess and evaluate the firm-level quality controls to determine whether they comply with the Thai Standard on Quality Control 1 (“TSQC1”), which is equivalent to the internationally known ISQC1. Thai SEC will also review engagement files from newly applied or renewed Thai SEC registered auditors to assess whether audits are executed in accordance with both Deloitte policies and Thai Standards of Auditing.

Proper handling of complaints and allegationsOur policies and procedures are designed to provide reasonable assurance that we deal appropriately with complaints or allegations that work performed failed to comply with professional standards or regulatory and legal requirements.

Our overall quality control system was rated “Very Good” by Thai SEC in the 2010, 2013-2014 and 2015-2016 inspections.

Note: 1st Thai SEC Inspection (2010)2nd Thai SEC Inspection (2013-2014)3rd Thai SEC Inspection (2015-2016)

In 2015-2016, all audit partners selected for engagement-level inspection passed and approved by the Thai SEC.

Pr

actice

Reviews

Leve

l

passed

Enga

gement

passed

Control

Quality

very go

od

Pr

actice

Reviews

Leve

l

passed

Enga

gementpas

sed

Contr

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Quality

very go

od


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Investing in our people and development“One of the key priorities under our firm Talent strategy is to ensure we provide both professional development and personal growth opportunities to each of our people so they can develop a career that gives them the chance to gain the experience that they want.”

Subhasakdi KrishnamraManaging PartnerDeloitte Thailand


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Hiring and retaining the best talent

Our culture of quality starts with recruiting well-qualified talented people; providing them with extensive training and education on technical and regulatory matters, professional ethics, and independence; offering them attractive career opportunities; and developing them into world-class leaders.

Staff supervisionWe have established a system to monitor the number of audit professional staff that our managers and partners supervise. We believe that it is critical to ensure that our professionals are given adequate supervision to enable the smooth execution of the audit.

Audit quality is likely to increase with lower staff per partner / manager ratio while higher staff per partner / manager ratio may increase the risk of partners and managers not being able to provide sufficient focused attention on the audit engagement.

Partner-Manager Headcount to Field Staff Headcount

Developing and retaining our talentAt Deloitte, we recognise that our talent are at the heart of the firm and we are committed to recruiting, developing and retaining our talent. We aim to provide our people with the following experiences where:

FY15 FY16

Partner-manager to field staff ratio 1 : 6 1 : 6


A high performance culture

We ignite the passion of our people and challenge them to achieve their best by working alongside highly skilled professionals servicing prestigious clients spanning multiple industries.

Distinctive experience

We recognise that everyone is unique with individual needs and desires. We offer choices for them to define who they are and shape their career the way they want it to be.

Career vs JobWe offer a broad-ranged career portfolio that is flexible and diverse to support the development of our people.

As One Behaviour

We strengthen and bring together inspiring leaders and supportive teammates from diverse cultures, wide-ranging skillsets and backgrounds to deliver excellence through a shared identity.

Lifetime Affinity

We witness and celebrate their most significant achievements and key milestones, where they grow in both their professional and personal life.

FY15 FY16

% Staff turnover 18% 19%


Staff turnoverThe degree and nature of the changes to an audit team from year to year assist to measure the readiness and ability of the team to perform a quality audit.


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Our talent strategy is centred around four main strategic priorities:

Deloitte UniversityDeloitte is the only Big Four firm that has a university for leadership development. Yearly, Deloitte Thailand sends a group of professionals to the university to be trained on how to better develop strategic relationships with clients and reinforce their role as trusted business advisors, as well as to enhance their leadership capabilities.

Deloitte University Asia Pacific has recently been set up in Singapore and is committed to growing leadership skills at every level of the organisation. It provides corporate training for employees from the Asia Pacific region which includes team-based learning and business simulations.

Equipping our talentOur vision is to develop world-class leaders and professionals who are inspired to make an impact that matters. As such, we support our people in their learning and development journey and equip them so that they can bring up-to-date knowledge and skills to our clients to consistently deliver quality and exceptional services.

Our extensive curriculum caters to all levels, from new hires to partners, and covers technical accounting and auditing matters, as well as industry, regulatory, professional ethics, and independence issues. It includes a wide variety of topics and an in-depth exploration of the many areas of auditing, which will contribute to quality audit execution and reinforce the role of the auditor.

To ensure that our partners and staff maintain an adequate level of professional knowledge and skills to carry out their work competently and professionally, they must meet the minimum Continuing Professional Education requirements determined by the firm.

LeadershipEquip and empower our talent to become inspirational, strategic and globally-minded leaders who are well-connected to their people

GrowthProvide professional and personal growth opportunities that equip our talent to take their careers in the direction they choose

Appreciation Create an environment that ensures our talent feel appreciated and valued

Talent Delivery

Provide structure and support to create a unified experience throughout the Talent lifecycle


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FY15 FY16

Total training hours 74,800 113,200

Average training hours per person 105 115


Training hours

Mobility Program Being affiliated to Deloitte SEA firm gives our people more opportunities to gain international experience and to benefit from working on cross-border projects and experiencing different cultures.

The Deloitte Southeast Asia and Global Mobility Programs offers our professionals an opportunity to gain valuable regional and international experience, expand their network and develop insight into doing business in different cultures.


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Performance management and remuneration reinforce our values and accountability

Clear expectations are set out for partners and directors who are engaged in the delivery of audit services. Each of them is carefully evaluated on an ongoing basis against their goals on areas which include quality, client servicing, financial performance, people management, leadership, and the strategic impact they are making.

The partner performance management and earnings allocation practices focus on the following critical components: • Emphasis on shared values of integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity

• Compliance with applicable independence requirements

• Compliance with quality requirements • Support for professional development and succession

Performance Management Approach Our Performance Management Approach focuses on our people’s contributions to the business outcomes and provides a framework for rewarding, developing, and retaining our talents.

The 360 survey feedback programLeadership development and succession planning for top leadership roles is a key priority area for us and as such, we launched the 360 survey feedback program to provide our partners with constructive feedback on their strengths and specific development areas.

Our partners and directors are continuously evaluated on areas which include quality, client servicing, financial performance, people management, leadership.


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Communication with clients We strongly believe that audit quality is enhanced through a two-way communication between auditors and those charged with an entity’s governance, which is typically the audit committee in a public company.

We meet with each of our clients’ audit committees several times each year. During the planning and the execution of an audit engagement, we meet with the audit committee to discuss matters related to the scope and results of our audit that are, in our professional judgment, relevant to the committee’s oversight responsibilities.

Two-way dialogues enhance audit quality

We communicate information to enhance the audit committee’s understanding of our audit process and identify areas requiring the committee’s attention. Issues addressed through these communications include control deficiencies, significant accounting policies and our judgments regarding the quality and acceptability of the company’s application of its financial accounting policies.

We also communicate with the audit committee to obtain its pre-approval for audit services, non-audit services and other fees and to discuss our conclusions on permissibility of such services from an independence perspective.

2016 Client service satisfaction survey

From the survey result, clients rate ‘Independence and Objectivity’ our highest rated attribute with a

rating of 8.82 out of 10 and followed by 'Build Strong relationships with you and others in your organisation', 'Technical competency' and 'Ability to meet commitment' with ratings of 8.36, 8.35 and 7.99, respectively which are higher than prior year's ratings.

Client visit programAt the end of each fiscal year, our Managing Partner will usually schedule to meet with our key clients to conduct face-to-face client service assessments. The purpose is to ensure that we have provided quality service to our clients and to obtain feedback directly and independently without the involvement of the engagement partner.

Client service assessment surveyAs we are committed to delivering, sustaining and improving our service, we obtain regular and structured feedback from our clients.

Audit quality is enhanced through two-way communication between auditors and those charged with an entity’s governance.

Key strategic clients are selected to participate in surveys which are administered by the SEA Clients & Markets team. Clients will send their feedback directly to the Clients & Markets team which will then inform the engagement teams of the survey findings and share with them any areas which may need improvement.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

About Deloitte Southeast AsiaDeloitte Southeast Asia Ltd – a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises.

Comprising 290 partners and over 7,400 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region.

All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities.

About Deloitte ThailandIn Thailand, services are provided by Deloitte Touche Tohmatsu Jaiyos Co., Ltd. and its subsidiaries and affiliates.

© 2016 Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.

Documents

Delivering audits of the highest quality Transparency report · Deloitte SEA, comprising practices in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore,