RSM International Transparency Report 2016

Global Report | 2017

Transparency Report 2017 Global vision backed by local knowledge

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

CONTENTS Message from the CEO Introduction The RSM Global Network

RSM INSIGHTS: Deglobalisation Quality People and Culture Structure and Functions

RSM INSIGHTS: Innovation Technical

RSM INSIGHTS: The Profession RSM Vision RSM Leaders and Representation

Jean Stephens Chief Executive Officer

MESSAGE FROM THE CEO Welcome to the 2017 RSM Transparency Report which provides top-level information on the structure and functions of our network and how our policies and procedures govern the provision of services our member firms provide to their clients.

We have also included three RSM Insights – topical reviews on current issues that are top of mind for middle market businesses today: Deglobalisation and how adaptation is key to survival; Innovation and the trending gig economy; and finally, we look how the profession must adapt to expanding use of data, both by clients and their auditors.

As a global network of independently owned and operated firms, RSM’s main purpose is to bring our firms around the world closer together to allow them to provide seamless cross-border services. This can only be achieved through uniting under the same high-quality standards, by staying true to our core beliefs of Understanding, Collaboration, and Ideas and Insight, and ensuring our clients consistently experience our client commitment – The Power of Being Understood.

After an extremely busy year in 2016 following the launch of our global unified brand in October 2015, this year has been focused on further embedding our name, logo and the values that underpin our brand within our markets, staff and communities. We have achieved a much greater sense of unification and enhanced the responsibility that we have for each other, our clients and others we engage with through our work.

6th

largest network of independent audit, tax and consulting firms in the world

41,400 STAFF

We have also focused on our understanding of those we serve. 2017 has presented many issues for middle market businesses from fluctuating exchange rates, cash flow issues, devaluations and uncertain economic and political climates, both locally and globally – these are all challenges that we are helping our clients overcome.

I would like to take this opportunity to express my gratitude and appreciation to Bob Dohrer, RSM’s Global Leader – Quality and Risk. Bob is respected across the industry for his experience and stature, demonstrated through his previous role of Chairman of the Forum of Firms and his current seat on the International Auditing and Assurance Standards Board.

Through his influence and direction, RSM has an asset that brings stability, focus and strategy to the network. Bob works closely with the RSM Transnational Assurance Services Executive Committee (TASEC), whose role it is to ensure our policies and procedures meet or exceed international and national standards.

However, there are of course many people within the network who contribute their time and expertise to the various leadership groups and committees and my sincere thanks go to all those professionals for their commitment to helping develop RSM.

$4.9bn fee income

800 120 OFFICES

COUNTRIES

Bob Dohrer RSM Global Leader - Quality and Risk

INTRODUCTION Clinging to traditional values while striving to move forward to meet the evolving needs of our stakeholders is a challenge the we at RSM cherish. Traditional values such as integrity, honesty, expertise and objectivity are hallmarks of our profession and values that RSM holds dearly. But while we hold firmly to these values we also realise that change is inevitable and if managed appropriately change is healthy and beneficial to all stakeholders.

With the changing needs of our stakeholders comes the need for innovation. At RSM, we believe that innovation is more than just ‘inventing things’; rather innovation is about culture and mindset and thus, at its core, innovation is really about our people. At the very core of our network, what we provide our clients is access to the skills, knowledge, expertise and enthusiasm of our people. At RSM we focus on recruiting, training and retaining member firm personnel who not only share our core values but who also embrace change and look forward with an innovative mindset.

In today’s world, information is power and the nature of the information organisations are now expected to make available is more diverse and prolific than ever before. Users today are interested in much more than just the balance sheet and income statement of a company; they want to know about the company’s position with respect to its social responsibility, how the company treats its employees, what the company’s carbon footprint might be, and so on. But even though the types of information desired may change, there is one desire that remains constant – the desire to have assurance about the accuracy and reliability of the information being used to make decisions. This constant desire to have assurance about the reliability of information is the intersection between our

profession’s past and its future. In other words, for RSM, this is the place where traditional core values and the future meet and where innovation must occur and we accomplish this by understanding the needs of our stakeholders.

At RSM innovation is happening on many fronts. New uses of technology and automation is a fact of life today and as such RSM is expanding its use by member firms of global audit software. This global audit software is based upon a major project involving member firms from around the world that are improving our core audit methodologies and incorporating the use of data analytics in our audit models. Innovation at RSM is happening in the expansion of new services ranging from international tax, to risk advisory services, to transaction advisory services. Our network leadership, from our RSM International Board of Directors to our CEO and Executive Office through our member firm managing partners, recognise the power of our people and the importance of creating a culture that promotes the very best in our people to come through to our clients.

At RSM we will always cherish and hold with the highest regard our traditional core values of integrity, honesty, expertise, objectivity and dedication to the public interest.

But we understand the need to evolve with our clients and other stakeholders while clinging to our core values and this creates an environment in which our people thrive and our stakeholders can expect the very best that we have to give: high-quality services delivered innovatively and backed by our core values.

THE RSM GLOBAL NETWORK OVERVIEW OF RSM INTERNATIONAL RSM is an international network of independent professional firms, formed in the early 1960s.

The 2016 survey of the International Accounting Bulletin ranks RSM as the sixth largest network of independent accounting and advisory firms. The network now comprises members and correspondents in 120 countries with more than 800 offices, 41,400 total staff, and combined revenues in excess of US$4.9 billion.

Many RSM member firms are among the top seven in their respective countries, and possess some of the best professional resources and experience available. The member firms have a broad client base from large listed and international companies to smaller, owner-managed businesses in the public and private sector. In addition to traditional assurance services, RSM possesses significant resources and experience in tax, transaction support, risk advisory, internal audit and corporate recovery and insolvency.

MEMBERSHIP IN THE FORUM OF FIRMS

OUR VALUES RESPECT

TREAT OTHERS AS WE WOULD LIKE TO BE TREATED

We display respect in each interaction with:

INTEGRITY

DO THE RIGHT THING

We stay true to our beliefs:

TEAMWORK

• in work groups • across member firms • across functions • amongst leaders

BE THE BEST IN EVERYTHING WE DO

We achieve distinction through:

STEWARDSHIP

• in decisions • in negotiations • in communications

WORK TOGETHER EFFECTIVELY

We cultivate genuine collaboration:

EXCELLENCE

• clients • employees • partners

• our standards • our operations • the work we deliver

BETTER OUR NETWORK, MEMBERS AND OUR PEOPLE

We make RSM a better place by:

• developing our people • building our brand • supporting our communities

RSM is a member of the Forum of Firms, an organisation formally established in 2002 as an association of international networks of accounting firms that perform transnational audits.

RSM is active in and fully supports the objective of the Forum of Firms which is to promote consistent and high-quality standards of financial reporting and auditing practices worldwide and to support convergence of national audit standards with the International Standards on Auditing. Susana MartÍnez of RSM Mexico currently represents RSM as member of the Forum of Firms’ Transnational Auditors Committee.

Bob Dohrer, RSM Global Leader – Quality and Risk, chaired the Forum of Firms from July 2010 with his second term ending in 2014. Commencing in 2015, Mr. Dohrer began serving his first term on the International Auditing and Assurance Standards Board (IAASB), the independent standard-setting board supported

by IFAC responsible for establishing international standards and guidance for auditing and other assurance services.

THE POWER OF BEING UNDERSTOOD The RSM network connects member firms through common methods and processes, including commonly agreed and applied quality standards. This connection provides comfort to RSM member firm partners and their clients that the quality of service and advice to referred clients will be to a consistently high standard – everywhere in the world.

We exist is to empower our clients to make confident decisions. To achieve this, we focus around a single, clarifying thought - the Power of Being Understood. This is the idea that sits at the heart of our brand and guides us in our decisions, behaviours, values and actions.

OUR PURPOSE Our purpose is to deliver The Power of Being Understood to our clients, colleagues and communities through:

COLLABORATION

We build strong, collaborative and lasting relationships with all our stakeholders by being accessible, responsive and adaptive.

IDEAS AND INSIGHT

UNDERSTANDING

We gain a deep understanding of clients’ needs, strategy and aspirations and strive to be an essential part of their business environment.

We provide every client with the benefits of tailored thinking and the insight of our more senior experts, both locally and globally.

THE CLIENT COMMITMENT From new trade rules to talent migration, from big data to cyber threats, the world is changing at an unprecedented pace.

But upheaval also means opportunity, if you’re prepared.

In this fast-paced environment, you need an adviser that thinks ahead and rapidly responds to your changing needs. At RSM, we build strong relationships based on deep understanding of what matters most to our clients.

It is our strong, collaborative approach that differentiates us. We will strive to truly understand you, your strategies and your aspirations and endeavour to be considered the adviser of choice to your business. By sharing the ideas and insights of our most senior professionals, we bring our expert local and global knowledge and resources to your environment, so you feel understood and empowered to move forwards with confidence.

This is the power of being understood. This is the RSM experience and our commitment to you.

RSM INSIGHTS Deglobalisation: A business myth fuelled by political gain?

Recent political events have shown that the business world is now moving in a different direction. But which direction?

Nationalism and populism seem to be gaining momentum among the populous but when it comes to trade, is deglobalistion real or a myth that is been fuelled by these unexpected political shifts? The known fact is that international trade will be affected by changes in national and international

trade deals, tax regulations and laws, but will businesses’ aspirations also shift from globalisation to localisation?

The answer to this is unclear. The political, financial and economic uncertainty will have a large and lasting effect on the middle market, and provide many businesses with unforeseen issues and challenges.

However, at RSM these challenges translate to opportunities.

We are using our knowledge and deep experience of both local and global issues, and our deep understanding of our clients’ business, how they operate and their aspirations, to help them find opportunity in change.

At RSM we are helping our clients navigate uncertainty in five core areas: TRADE | TAX | TALENT | TECHNOLOGY TRANSPARENCY

RSM’s expert global panel is using their knowledge and expert analysis of macroeconomics, international trade policy, cross-border relations and cultures, international finance, emerging markets and foreign exchange to help answer the questions middle market business are facing.

ARE BUSINESSES AND PEOPLE DIVERGING?

HOW SERIOUS IS THE NEED FOR INCREASED DATA PROTECTION AND STRICTER CYBER CONTROLS?

HOW COULD DEGLOBALISATION IMPACT THE GLOBAL FLOW OF CAPITAL?

HOW CAN THE MIDDLEMARKET SURVIVE IN THIS COMPLEX GLOBAL ECONOMY?

TRANSPARE NC

TRADE

Y TAX

WILL NATIONAL TAX POLICIES CONTINUE TO ADJUST TO GLOBAL COMPETITION?

HOW DO SOCIAL MOVEMENTS AND UPRISINGS AFFECT BUSINESS ENVIRONMENTS?

HOW WILL DEGLOBALISATION IMPACT CROSSBORDER TRADE?

TE

WHAT ARE THE DIFFERENCES BETWEEN THE EU AND THE US ON DATA PRIVACY AND RELATED ISSUES? ARE CHINESE BUSINESSES THE NEW CHAMPIONS OF DEGLOBALISATION?

OL OGY

EN

T

C

HN

L TA

HOW COULD DEGLOBALISATION AFFECT FOREIGN OWNERSHIP?

HOW WILL THE RESTRICTIONS OF MOVING GOODS AND PEOPLE AFFECT MY BUSINESS?

WILL I HAVE INCREASED BUSINESS COSTS ON TARIFFS, ADVICE, TALENT, RESTRUCTURING?

ADAPTATION REMAINS THE KEY TO SURVIVAL IN A COMPLEX GLOBAL ECONOMY The global economy is a complex and fragile thing. Most notably in 1982 the GDP growth rate of the global economy dropped to 0.3% of GDP1.

1982 GDP rate

growth

0.3% of GDP

Since then, the world has witnessed several ups and downs culminating in a global recession in 2009. Almost ten years on from the credit crisis, the global economy is maintaining respectable levels of growth with output projected to grow by 3.5% in 2017 and 3.6% in 20182.

3.5%

3.6%

2017 2018

A large part of this growth is driven by India, China and other emerging markets that are benefitting from global trade. In the developed world there is a greater level of scepticism about the impact of globalisation. This has manifested itself into dramatic political changes in the US

and UK. But in order to understand the business impact, we need to delve deeper.

The fact is that many companies are selling less in overseas markets compared with previous years. In 2016, the average level of corporate revenues generated abroad fell from 45% to 44% globally, the lowest level in five years, according to HSBC3. However, whilst these declines are broad, it is not something that has been replicated in every market. In Germany and Mexico, for example, growth has actually increased from foreign revenues. So are we seeing a genuine contraction in trade? The answer to that question is almost certainly no. The World Trade Organisation forecasts that global trade will expand by 2.4% in 2017 and between 2.1% and 4% in 2018.

2017

2.4%

2018

2.1-4%

Why is there a sense that deglobalisation is happening? The answer arguably lies in political upheavals like Brexit and the election of a US President who is sceptical of globalisation. Regardless of the political situation, there is a sense that the impact of globalisation is causing people to weigh its benefits and assess its impacts. For middle market businesses that need to stay ahead of the changing global economy, their task has become much harder.

HOW MIDDLE MARKETS CAN ADAPT Whilst a great deal of attention falls on the largest companies, it is the middle market that provides the largest proportion of growth and employment4.

These companies are notoriously difficult to characterise but they all share a common characteristic of employing hundreds of people and achieving revenues in the millions. Many of these firms have grown from small entities, but others are a result of mergers and acquisitions. Whatever their origin, these firms have an advantage over both their smaller and larger corporate cousins as they are more adaptable to change.

Adaptability is the secret to success on the world stage, but companies need to develop this attribute. For example, a middle market business may have the money to invest, but it may not have the right tools or talent. Regional red tape and stringent monetary policies can create significant tax liabilities and make it difficult to remove money from the overseas markets. The companies that we work with have been able to adapt by holding onto their centralised office structure whilst simultaneously allocating resources to markets that are deemed the greatest priority to their business. The majority of middle market organisations have nimble supply chains and fewer internal processes to follow.

All of this is co-ordinated by a much flatter operational structure as opposed to a traditionally hierarchical system that is familiar to large corporate businesses.

None of these advantages means that their standards should be any less than their larger peers. As companies grow on the global stage, they need to make sure they are implementing their strategy and upholding common standards of performance.

1

Global GDP growth (annual %), The World Bank http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

2

World Economic Outlook Update, July 2017, IMF https://www.imf.org/en/Publications/WEO/Issues/2017/07/07/world-economic-outlook-update-july-2017

3

HSBC analysis of global stock indexes

American middle market companies represent the world’s fourth largest economy, accounting for $3.8 trillion in GDP during 2013, Next Point Capital http://www.nexpointcapital. com/middle-market-americas-economic-engine/ 4

STRATEGISING WITH DATA A brand will only succeed if it is has a strong strategy that is embedded within the values and ethos of the

company or information related to how the company treats its employees.

As companies grow outwards, so too do their footprints. As a result, it is becoming more important for auditors of this expanded corporate reporting to understand the impact a business has on its environment. Auditing is no longer a transactional experience as auditors now play a key role in helping companies in illuminating data for stakeholders so they can make use of it. It is this shift in focus that can benefit companies that design their strategies to operate efficiently in an increasingly complex environment where there is often a shift in economic activity in or between regions. Agility is the key to success.

THE FUTURE

company. The same can be also said of a company’s investment plans, which also need to reflect the growth plans of the company. For example, is it better to hire more talent now or hold back on investment until major technology investments have been made? A proven business model will help a company navigate these challenges, but it can only do that if it has a strategy that is built around an understanding of the environment in which the business operates. As a consequence of this, companies have an insatiable appetite for actionable data insights.

We have seen this become more apparent in the corporate reporting process also, where firms are demanding more and more data sources as corporate reporting expands from traditional financial reporting to CSR. For example, investors and other sources of funding might want data about the carbon footprint of a

5

It is the companies that can adapt to the shifting lines of world trade that will

2025

India

7.7% annually

Uganda

growth hubs in East Africa and new segments of South East Asia, led by Indonesia and Vietnam. The research also speculates that India and Uganda will top the list of the fastest growing economies to 2025, at 7.7% annually5. It is changes like these that will shape the future of the global economy and the middle market will need to respond to this change.

Prioritising key markets will become even more important for middle market companies. It may be that the company of the future will become a globe trotter – shifting its workforce and operations every ten years as demand for its goods and services shifts too. New technologies will also play a part in smoothing the path for global companies, as transport becomes faster and software and AI becomes ever more sophisticated. Decision-making too will become easier, as better ways of collecting and processing data are already empowering businesses. This is why the global companies of the future are going to be globe-trotting adaptors rather than static cross-border operators of the past. In their turn, audit firms and networks will also need to allocate local resources when and where needed to create value for the globe-trotting companies of the future.

Article from rsm.global

thrive in the future. According to the Center for International Development at Harvard University, economic projections are optimistic about new

The Atlas of Economic Complexity, Center for International Development at Harvard University, http://atlas.cid.harvard.edu/rankings/growth-predictions/

QUALITY RSM began as an audit network and during its development has focused on building a high-quality practice able to serve clients’ audit and other needs. Uniquely, RSM commenced a long-term programme in 1993, years before similar Forum of Firms initiatives, to ensure consistent audit practices and standards among RSM firms throughout the world. This programme has continued to develop and expand and has successfully delivered global methodologies, policies and practices, including: Quality Assurance and Risk Containment Audit Methodology Model Audit Programmes and Paperless Audit System Ethics and Independence Anti-Bribery and Corruption Web-based Conflicts of Interest and Independence System International Tax Methodology Internal Audit Methodology Member firm inspection and monitoring programmes G lobal, network-wide inspection, observation and monitoring programme These methodologies, policies and practices are compliant with international standards (where applicable) and have been developed by specialists and leaders at member firms, and the RSM Executive Office, under the oversight of the RSM Transnational Assurance Services Executive Committee (TASEC) and the RSM International Board of Directors over many years. TASEC is formed of senior assurance partners and other leaders from key member firms and is responsible for the development and maintenance of all quality-related technical policies and practices throughout the network.

TASEC monitors compliance with its policies through internal and global inspection programmes, which monitor each firm’s quality control. TASEC evaluates new member firm due diligence reports to ensure the highest quality standards are applied when admitting new member firms. The Committee reports their membership recommendations to the Chief Executive Officer and the RSM International Board of Directors including action plans for new member firms to achieve quality targets within agreed timescales.

Quality will remain the common foundation which will allow us to develop and expand the range and depth of services offered to our growing client base.

PEOPLE AND CULTURE RSM has expectations for member firms to help ensure that there are consistently high standards of behaviour throughout the network. These expectations describe how we conduct ourselves in our professional dealings, and how our member firms connect with each other and with their clients. This is not a set of rules, but rather a set of benchmarks to align all members of the international network behind a common vision to achieve our global strategic objectives. Member firms agree to specific requirements in their membership agreement with regard to expected member behaviours, but we also encourage firms to maintain their own personality while still serving the needs of the network at the highest level.

At RSM we establish close and enduring relationships between member firms and with clients while maintaining objectivity and independence when required in all services provided. We have an in-depth understanding of our clients’ values, their working culture and their other requirements. At RSM, every team is led by senior personnel who deal directly with the client and act as their point of contact with the rest of the network. We also utilise global and regional engagement leaders and believe this is vital for client service, particularly when dealing with multiple locations or services. We focus on relationships because we believe it is the key to client service and future firm growth.

Through global and regional conferences, training programmes and our Centres of Excellence structure, we encourage people from across the world to network with each other, and form and develop close relationships. Our culture is strong because we do business together and this facilitates seamless service to clients across borders.

RSM operates a ‘contributed hours’ concept. This concept means RSM member firms are requested to provide a certain number of hours every year, depending on their size, to initiatives such as training, our due diligence and inspection programme, articles for publications and Centres of Excellence. Asking member firms to contribute their time to the network means member firms are personally committed to the success of RSM. Our people make us strong and it is their time and expertise that helps RSM continue to grow.

“

Our people are our biggest asset

”

STRUCTURE AND FUNCTIONS Our international structure is aimed at executing the RSM strategy and providing member firms with the platforms to develop business together. The structure also reflects our geographic coverage ensuring representation from all key regions.

INTERNATIONAL BOARD OF DIRECTORS The members of the Board are appointed through a nomination process ensuring regional representation is achieved. The Board sets the international strategy of RSM and acts in the interests of all member firms. The Board has four committees: Board Strategic Risk Committee, Governance Committee, Audit Committee and Remuneration Committee.

CHIEF EXECUTIVE OFFICER (CEO) AND RSM GLOBAL EXECUTIVE OFFICE (EO) TEAM The CEO and EO have global functions and responsibilities and are primarily based in London. These include: Brand development, corporate messaging International client needs and business development International referral protocols Geographic coverage Budget and funding Market movements and competitor analysis RSM Academies and other training initiatives RSM Connect and capabilities database Support to the technical committees and regional councils Within the EO, the RSM Global Leader – Quality and Risk has responsibility for the quality of assurance and other services provided by member firms. These responsibilities specifically include: Meeting membership obligations of the Forum of Firms RSM quality assurance policies, procedures and inspections Audit methodology and technology platform Global ethics and independence policies Anti-bribery and corruption policies International audit training and CPD guidance

RSM INTERNATIONAL STAFF STRUCTURE Chief Executive Officer: Jean Stephens

Assistant to CEO

Chief Financial Officer

Administrative Support (x2)

Marketing and Business Development

Regions

Technical

Operations / Member Resource

Global Marketing Consultant

Regional Leader, Latin America: Brendan Quirk

Global Leader, Quality & Risk: Bob Dohrer

Manager, Corporate Development

Head of Marketing

PR & Communications Manager

Communications Executive

Senior Global Brand Manager

Digital Marketing Executive

Design Assistant

Senior Manager Global Business Development

Business Development Operations Assistant

Regional Coordinator

Regional Leader, Asia Pacific: Neil Hough

Regional Coordinator

Regional Leader, Europe: Anand Selvarajan

Regional Coordinator

Senior Manager, Audit Methodology

Project and Event Coordinator

Senior Manager, Global Inspections

Referrals Database Administrator

Manager, Independence

Administrative Support

Manager, Training

IT Coordinator

Manager, Technical

Risk Advisory and Corporate Development Executive

Regional Leader, Africa: Clive Betty

Inspection Coordinator

Regional Leader, MENA: Bassam Dahman

Technical Consultant, IFRS Specialist

North America International Office

RSM INSIGHTS Innovation: The gig economy isn’t holding back and the middle market shouldn’t either In July 2017, UK Prime Minister, Theresa May, launched a government review into working practices in the modern economy in the UK, otherwise known as the ‘gig economy’. There has been a rise of short-term contracts and flexible working and, as a result, the Taylor Review called for work in the UK economy to be equal for all employees, whether in the gig economy or not.

With companies like Deliveroo and Uber bedding into our lives, it is obvious that the gig economy has revolutionised the way people are working and therefore the way workplaces are structured. The Taylor Review forces businesses to think about how gig economy workers should be recognised in law.

Whilst the Taylor Review has hit the headlines in the UK, this is not an issue that the UK is facing alone. The independent gig economy in both the US and EU is thriving. A McKinsey study on the gig economy found that 20-30% of the labour force in both the US and the EU is made up of independent workers who are self-employed or do temporary work. It is clear that globally there is a need to move beyond the employed/self-employed dichotomy, and find a way to respond to the changing workforce.

20-30%

LABOUR FORCE

made UP OF

INDEPENDENT

workers

Elsewhere, research from the University of Oxford and the University of Pretoria looked at the gig economy in Kenya, Nigeria, South Africa, Vietnam, Malaysia, and the Philippines. They found that gig economy workers in these countries were forced to constantly reduce their wages as a result of a massive labour oversupply, as the uptake was massive.

Governments around the world are starting to respond to these changes.

In April 2017, the European Commission established the European Pillar of Social Rights, which expressed the need to look at ways to better align social security systems with the new forms of work. Similarly, in the US, Democratic Senators Mark Warner and Suzan DelBene introduced the first federal bill addressing the gig economy earlier this year, which aims to create a portable benefits model that would provide benefits to the independent workforce.

The gig economy presents opportunities and challenges for middle market businesses specifically. Their nimble nature means they can prosper in this changing economy. Middle market companies tend to be smaller and can benefit from a flexible workforce – they can lean on this pool of self-employed workers when they need extra resources to fuel growth.

However, the lack of an appropriate legal status for such independent workers poses a challenge to businesses and leaves workers open to exploitation.

The middle market needs to be wary and ensure they are not penalised for false employment categorisation, for example. While large, multinational corporations have the resources to protect themselves from such eventualities middle market companies may not.

This new way of working also raises big questions around tax. While the gig economy is moving forward, it is clear that the tax system is not keeping up.

There is a need to equalise the tax paid by those who are employed and selfemployed. Under the gig economy, selfemployed workers and corporations could end up paying less tax. Whether the Norwegian model of a shareholder income tax or the Irish model of a low corporate tax rate is adopted, tax systems around the world need to respond to the changing economy.

Middle market businesses need to be proactive and prepare for changes to tax and employment law before they come into effect. The gig economy is impacting our economy and there is no sign it is slowing. Middle market businesses need stay ahead of the curve, using their strengths to their advantage where large corporations cannot, by reacting and revisiting their business practices to adhere to this new way of working.

Article from rsm.global

RCH

SEA

RSM INNOVATION COMMITTEE The RSM Innovation Committee is tasked with monitoring technological advancements and related opportunities for innovation in our client service and network operations.

However, the true purpose of the Committee is to look at ways RSM firms can foster an environment that is conducive to innovation. In short, how can RSM firms adapt and improve their culture to encourage innovation from the ground up.

This is driven by our ambition to remain relevant to our existing clients, prospects, markets and our profession by being ahead of the curve when it comes to using the most up-to-date technologies and work methods.

“

How can RSM firms adapt and improve their culture to encourage innovation from the ground up?

The Committee is made up of individuals from our member firms and the Global Executive Office: Bob Dohrer - Chair - Global Executive Office David Carlisle - Global Executive Office Eric Chen - Hong Kong Belinda Freeman - Global Executive Office Pepe Gomez - Puerto Rico Julia Lerner - Russia Mike Niemans – Netherlands Dave Scudder – US Adrian Tan - Singapore Scott Vanlandingham - US

TECHNICAL RSM COMMITTEES RSM has established the following committees, leadership and advisory groups, made up of professionals from member firms around the world. These include: Transnational Assurance Services Executive Committee – responsible for setting the audit methodology and other audit-related policies and oversight of all RSM global inspection and monitoring programmes IT Committee – actively engaged in the review, analysis and support of the IT infrastructure, data privacy and security Global Tax Leadership Group – supports and develops quality control standards, marketing, business development and global collaboration Global Risk Consulting Committee – supports and develops quality control standards, marketing, business development and global collaboration Global Financial Due Diligence Leadership Group – supports cross-border collaboration for financial due diligence assignments Operational Risk Committee – responsible for overseeing the development and management of operational risks for the network Innovation Committee – responsible for developing and promoting an innovative culture contributing to the growth and long-term development of the network RSM CENTRES OF EXCELLENCE (COE) CoE play a critical role in our international business development efforts and also serve to enhance member firm core competencies in services delivered. The CoE are groups of professionals from various member firms who aim to establish standard practices, ensure seamless regional delivery and align our resources to enable targeting of midsize and larger, more sophisticated companies. Based on the needs of the network, the CoE are globally coordinated and organised on a regional basis.

TRANSNATIONAL ASSURANCE SERVICES EXECUTIVE COMMITTEE (TASEC) As an executive committee of the RSM Board of Directors, TASEC is responsible for developing, promulgating and monitoring compliance with all standards issued by the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA). TASEC is also charged with monitoring the operation of quality assurance activities conducted by the Executive Office, including the approval of due diligence reports for the admission of new member firms, the approval of member firm inspection reports, and action plans to address deficiencies noted during the global inspection programme.

AUDIT RESPONSIBILITY TRANSNATIONAL ASSURANCE SERVICES EXECUTIVE COMMITTEE

Bob Dohrer Global Leader Quality and Risk

Hiromi Kaneko Independence

Steve Whitcher Audit Methodology

Joelle Moughanni IFRS

Other responsibilities of TASEC include developing, promulgating and monitoring compliance with the: Requirements of the RSM Audit Manual and RSM Model Audit Programmes Non-service line specific and assurance services requirements of the RSM Quality Assurance and Risk Containment Policies Requirements of the RSM Ethics and Independence Policies Requirements of the RSM Anti-Bribery and Corruption Policies Requirements of the Policies and Procedures for the Global Inspection Programme and Member Firm Inspection Programme Requirements of the RSM Assurance Services Training and Continued Professional Development Policies When appropriate, TASEC also recommends sanctions against member firms and professionals as a result of non-compliance with the Committee’s directives. The RSM Board of Directors ultimately acts on any such recommendations.

Kevin Chowdhay Global Inspections

Tessa Rowland Training

According to its charter, TASEC consists of five to nine members of suitably qualified and experienced audit partners or audit directors from member firms. The chair of TASEC is selected by the International Board of Directors from the members of the Committee and serves for a term of three years and can be renominated at the end of the three-year term.

MEMBER FIRM ADMISSIONS RSM seeks to admit new member firms that share the RSM vision, mission, strategy and values. Each prospective new member firm is subjected to a due diligence process, the outcomes of which form the basis for deciding whether or not to admit the firm as a member firm of RSM. The due diligence engagements are conducted by qualified independent partners and senior personnel from current RSM member firms under the direction of RSM Executive Office personnel and the RSM Global Leader – Quality & Risk. The results of a due diligence engagement for a prospective new member firm are reviewed by TASEC and the RSM Global Leader – Quality & Risk. The Chief Executive Officer then makes a membership recommendation to the RSM International Board of Directors, who ultimately approve or deny admittance of new member firms.

Thinking ahead and responding rapidly

In the new member firm due diligence process, potential new member firms are evaluated against RSM criteria for membership, which include among others: T he prospective member firm’s reputation for quality and high ethical standards Compliance with local/national standards and requirements, and if those local/national standards are not converged with standards established by International Federation of Accountants (IFAC) independent standard-setting boards, the prospective member firm’s commitment and capability of meeting international standards and requirements The prospective member firm’s commitment and capability in adopting RSM global policies, procedures, methodologies and tools The prospective member firm’s agreement to participate in the RSM global inspection programme All RSM member firms are subject to expectations defined in the RSM membership agreement, addendums to the membership agreement, and licensing agreements for branding and use of the RSM name. All RSM member firms are required to align with RSM policies, procedures, methodologies and tools.

INDEPENDENCE AND ETHICS POLICIES RSM maintains Independence and Ethics policies to provide reasonable assurance that member firms, partners and professional employees comply with the independence and ethical requirements of the following: International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants Local professional organisations Local security exchange regulators Other relevant regulatory authorities RSM International Every member firm has a partner (or equivalent position) responsible for independence, whose responsibility it is to augment these policies, as necessary, to the specific requirements of their member firm to reflect additional local ethical codes or regulatory requirements that establish higher standards than those reflected in the basic RSM independence and ethics policies. Any amendments made to the RSM basic policies to include additional local requirements

must be submitted to the Executive Office for review, and must be approved by the Global Leader – Quality & Risk.

Partners or professional employees who have a question regarding the RSM independence and ethics policies are required to consult promptly with their member firm’s partner responsible for independence. If the member firm partner responsible for independence has a question regarding these policies, he or she consults with the Executive Office.

Member firms are required to maintain a listing of all clients to which the RSM Ethics and Independence policies apply.

The list is made available to all member firms partners and professional employees. Additions and deletions to the list are made available, when they occur, to all member firm partners and professional employees.

Partners and professional employees are required to annually complete an independence compliance questionnaire confirming that he or she: Has read the RSM Ethics and Independence policies Has read his or her member firm’s Ethics and Independence policies Understands their applicability to his or her activities Is, and has been for the past year, in compliance with those policies Any qualifications to such confirmation are fully explained in writing and corrective action taken by the member firm.

INDEPENDENCE, RELATIONSHIP AND CONFLICT OF INTEREST TRACKING RSM maintains an online independence, relationship and conflict of interest tracking tool called the Global Relationship Tracker (GRT). This tool holds data of all assurance or nonassurance clients of member firms, including specifically the following categories of member firm clients: Public Interest Entities, including listed entities Private Equity Groups or Funds Private entities with ownership or affiliates located in another jurisdiction or country, including ultimate parent companies, intermediate parent companies, sister companies, subsidiaries or affiliates Additionally, all clients that are subsidiaries or affiliates of groups meeting the above criteria are required to be included on the GRT.

The Executive Office, under the direction of the RSM Global Leader – Quality and Risk, is responsible for overseeing the timely maintenance of the GRT (including communication of additions and deletions to the list), and for overseeing the adequate functioning of the policies and consultation process with respect to all of the clients on the GRT list.

Member firm partners and professional employees are required to consult the GRT and take such other precautions that are considered necessary in the circumstances to ensure compliance with the RSM Independence and Ethics policies with respect to financial, business, family or employment interests. Member firm partners or professional employees who grant discretionary investment authority to third parties are required to ensure compliance with these policies by the investment manager.

Member firm partners and professional employees are responsible for consulting the GRT and taking such other precautions that are considered necessary in the circumstances to ensure compliance with respect to identifying potential conflicts of interest in the services member firms provide to clients or prospective clients, particularly international groups.

Annually, member firms are required to perform procedures sufficient to assess the completeness and accuracy of their client information required to be included on the GRT and report accordingly to the Executive Office.

CONFLICT RESOLUTION PROCESS When a member firm partner or professional employee identifies a potential impairment of independence or conflict of interest with respect to a client or prospective client of another member firm through GRT searches and other conflict of interest checks, the international contact partner (ICP) of the member firm is required to be informed and communicates the relevant details of the client (or prospective client) and engagement to the ICP or other contact person of the other member firm(s). The contact persons of the member firms involved, in consultation with their partners responsible for independence, then assess the facts and circumstances relating to the potential impairment of independence or conflict of interest and apply the appropriate safeguards, which may include withdrawal from an engagement or opportunity.

If member firms are unable to agree appropriate safeguards, the Executive Office and the chair of the RSM International Board of Directors are requested to consider the potential impairment of independence or conflict of interest. The member firms provide the Executive Office with the necessary information regarding the relevant facts and circumstances, which will be used to assess the potential impairment of independence or conflict of interest with reference to seven assessment criteria. The Executive Office and the chair of the RSM International Board of Directors will

48%

30%

20%

2%

AUDIT

TAX

CONSULTING

OTHER

then, after considering the request and information provided, make a recommendation as to the resolution of the potential impairment of independence or conflict of interest.

AUDIT QUALITY Quality is the absolute cornerstone for RSM. To reinforce the message that audit quality is of the utmost importance in RSM, the Executive Office develops and maintains global resources and tools for member firms, including: An audit methodology delivered via technology and software that is used globally An audit methodology manual and quality assurance and risk containment policies that are designed in accordance with international auditing, quality control, independence and ethics standards A comprehensive proprietary intranet service where information is housed for member firms covering topics such as auditing, financial reporting, ethics and independence requirements and training on all topics, processes and protocols enabling consultation with the Executive Office with regard to audit, independence and ethics matters The overall responsibility for effective and high-quality functioning of the member firm’s assurance practices lies with the RSM Global Leader – Quality and Risk. TASEC provides development of strategy and direction for the assurance practices which is then implemented through the RSM Global Leader – Quality and Risk and the Executive Office team. The heads of audit from member firms are also called upon to form task forces and to seek input with respect to specific needs and projects undertaken by the Executive Office.

The Global Leader – Quality and Risk is also supported in strategy implementation by assurance functional leaders for audit methodology and technology, International Financial Reporting Standards, global inspection and monitoring programmes and assurance services training.

CLIENT ACCEPTANCE/CONTINUANCE Providing high-quality assurance services requires that RSM member firms accept only clients who share RSM’s core values and beliefs. Member firms are required to only enter into relationships with clients who fit key RSM acceptance criteria and who are prepared to pay a fair fee for high value work.

These client acceptance criteria include: The client acts with integrity The member firm complies with RSM Ethics and Independence policies and is not entering into any client relationship or engagement which would be prohibited under those policies The member firm understands the client’s needs and service requirements The member firm has the necessary capabilities available, including sufficient resources and expertise to perform the work required by the client and to render the necessary reports and other deliverables within the reporting time frames During the client acceptance process, the prospective engagement, or lead assignment partner, also assesses the level of risk attached to the engagement and determines whether special staffing, supervision and review requirements apply. A second partner is assigned to concur with a conclusion to accept any engagement or a client relationship that meets certain risk profiles, including certain high-risk industries.

GLOBAL AUDIT METHODOLOGY RSM member firms have agreed to comply with the requirements of the RSM Audit Manual and the mandatory Model Audit Programme Sheets (MAPS). The RSM Audit Manual provides a risk-based methodology and includes providing member firm engagement teams with guidance with respect to appropriate responses to identified risks of material misstatement. The requirements within the RSM Audit Manual are required to be used by RSM member firms when conducting audits of financial statements.

The RSM Audit Manual complies with the requirements of the following: International Standard on Quality Control issued by the International Auditing and Assurance Standards Board (IAASB) International Standards on Auditing issued by the IAASB International Auditing Practice Statements issued by the IAASB RSM Quality Assurance and Risk Containment Policies

RSM member firms apply the requirements and guidance contained in the RSM Audit Manual through the use of model audit programme sheets and also through a proprietary automated audit programme template called RSM Paperless.

This programme is designed to operate on the CaseWare technology platform, which includes automated trial balance and working paper generation functionality.

A major project is currently underway to assess and revise the RSM audit methodology. In addition to scrutiny of bedrock audit principles such as the audit risk model and materiality, the project also focuses on an enhanced professional judgment framework, including appropriate use of professional scepticism and responsibilities for fraud. Use of innovative data analysis techniques in providing more effective audits is also a major piece of the audit methodology project. Lastly, the project involves determination of the most effective and efficient technology platforms to support the delivery of the RSM audit methodology by member firms.

GLOBAL IFRS RESOURCES Ensuring that IFRS capabilities are a core skill for member firms is the responsibility of the Executive Office’s IFRS specialist and lead technical consultant under the direction of the RSM IFRS Advisory Committee and with the support of the RSM IFRS Centre of Excellence. The RSM IFRS Advisory Committee comprises several member firm representatives possessing high level IFRS expertise. The responsibility of the IFRS Advisory Committee is to provide direction and strategy with respect to IFRS services to the Executive Office as well as serving as the top IFRS consultant body within RSM. The RSM

Centre of Excellence comprises representatives from each member firm who possess IFRS expertise in particular facets of IFRS. The IFRS Centre of Excellence, under the direction of the IFRS Advisory Committee, promotes global quality and consistency of IFRS services through the following activities: Operation of an IFRS help desk Development and delivery of IFRS training programmes and material, involving RSM IFRS Lead Member Firms covering timely and relevant IFRS topics Publishing technical alerts and monthly bulletins and other technical resources and tools RSM is also active in the development of IFRS on a profession-wide scale by contributing global comment letters on proposed new standards and participating in the review process for new training on IFRS offered by standard-setting bodies

IFRS

PROFILES

124

JURISDICTONS

GLOBAL INSPECTION AND MONITORING PROGRAMMES In our relentless pursuit of quality, RSM has developed both individual member firm inspection and monitoring programmes, as well as RSM’s global inspection and monitoring programme. Under the joint operation of these programmes, RSM member firms are provided with the necessary information with regard to the design, implementation and operating effectiveness of their quality control practices surrounding their assurance practices as well as other service lines.

Each individual RSM member firm is required to establish a monitoring process designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control over its assurance practice are relevant, adequate, operating effectively, are aligned with RSM expectations and all requirements established by the International Federation of Accountants (IFAC) standardsetting boards including: International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Statements, and Other Assurance and Related Services Engagements International Standard on Auditing (ISA) 220, Quality Control for an Audit of Financial Statements IESBA Code of Ethics for Professional Accountants Further objectives of an RSM member firm inspection programme are to provide an evaluation of: The extent of the member firm’s alignment with RSM policies and procedures The member firm’s adherence to local/national professional standards and applicable local/national legal and regulatory requirements Whether the firm’s quality control system has been appropriately designed and implemented, so that reports that are issued by the firm or engagement partners are appropriate in the circumstances Areas where further actions are needed by either the firm or RSM in order to take corrective actions or make improvements to the firm’s quality control system A further distinct benefit of the inspection process is that it provides the opportunity to identify areas for improvement in engagement management and the client service production and delivery system.

Under RSM’s global inspection programme, RSM periodically oversees and/or participates in all member firm inspection programmes on a cycle not exceeding three years.

Such inspections are referred to as globally coordinated inspections. RSM globally coordinated inspections are conducted by independent qualified partners and senior personnel of other member firms under the direction of the Executive Office personnel and the RSM Global Leader – Quality and Risk. The RSM global inspection programme is also designed to meet the membership obligations of the Forum of Firms, of which RSM is a member network.

RSM’s Transnational Assurance Services Executive Committee (TASEC) is responsible for establishing policies and guidelines for both the RSM member firm inspection programme and the RSM global inspection programme.

The RSM Executive Office is then responsible for the implementation and operation of the global inspection programme. The RSM International Board of Directors has the authority to impose sanctions on a member firm to ensure compliance with professional requirements and RSM methodologies, policies and procedures.

RSM INSIGHTS Profession: What’s driving change in the audit profession?

If you have ever purchased a new car, the chances are you will have only noticed superficial changes between an older and newer model.

In a similar fashion, an audit may look the same on the surface but the detail belies a whole range of transformations and changes. If we unpick the detail, there are two key developments that are changing the audit industry forever – the use of technology and the changing views of regulators towards technological change. These are the driving forces of the audit industry.

The primary factor propelling change in the audit profession is the expanding use of data, both by clients and their auditors. The role and use of big data has caused much needed disruption in the profession as the rapidly expanding use of data analytics recasts the role of auditors. Long gone are the traditionalists – they are making way for the digital transformers. As a great enabler, technology has created the space for advocates of data analytics to champion higher quality audit evidence than has been obtained in the past.

Audit firms that do not innovate in data analytics quickly enough to at least keep pace with their clients will risk becoming less relevant in the financial information supply chain.

BIG

DATA disruption

data

ANALYTICS

A second and related factor is the view of regulators with regard to innovative techniques being developed and applied by auditors. Regulators have to assess whether auditors have complied with professional standards, but there is little mention in the professional standards of innovative high-quality audit procedures such as data analytics. Whilst the professional standards do not prevent an auditor from performing innovative audit procedures, these specific procedures are not referred to in the professional standards and that leaves regulators and auditors in an uncertain place. This uncertainty is in some cases paralysing innovation in the profession.

This is a challenge that can be overcome by continuing the existing dialogue between the auditors and the regulators.

Ultimately a balance needs to be struck between maintaining the highest level of quality without losing sight of the benefits that innovations can bring to traditional auditing models.

A key part of transforming the audit environment for the better will be achieved by sticking to the very basic quality control considerations embodied in professional standards. Auditors must make an assessment of whether the source of the audit evidence is up to standard. As part of this, auditors need to look forward towards the deployment of new innovative techniques with a rigorous quality control process.

Quality is a key issue, especially in times of change when new techniques are altering the way an audit works. This is where another factor shaping the audit environment is becoming increasingly important. A Quality Management Approach (QMA) is starting to sweep across the industry. This approach recognises that certain building blocks need to be in place to satisfy quality standards. As part of this, an auditor can

adjust and tailor its approach to quality control to match its specific client base.

For example, an audit firm that has no clients in the insurance sector has no need for quality control procedures to ensure that its staff are appropriately trained in accounting standards specific to the insurance sector. This not only removes unnecessary barriers to innovation, but makes sure that clients receive the best service. At this stage, a QMA approach to quality control at the firm level is just being developed within the professional standards by IAASB task forces. Once this process is completed, firms will have confidence to fully flesh out their individual approaches.

In the future, a true QMA system will allow objectives, risks and responses to be scalable so that firms of all sizes are performing efficient high-quality audits. Audit clients that require less receive less, and clients that require more, receive more in terms of time and resources. However, before this approach can be developed, the IAASB standards will need to be assessed, revised and issued so that an effective QMA approach becomes a finalised system for auditing. While these developments may seem like they are arriving in a flurry, businesses need hardly notice them as the onus is on firms to adapt so they can deploy new techniques and processes. If the industry embraces the technological changes around new ways of applying that technology, companies will be better served.

Article from rsm.global

RSM VISION is to be the adviser of choice to middle market leaders globally.

QUALITY Our member firms are selected from among the very best independent professional services firms across the world and adhere to strict quality controls.

RSM International is a member of the Forum of Firms The Transnational Assurance Services Executive Committee (TASEC) oversees all audit methodology and polices in compliance with International Standards on Auditing Global and member firm inspection programme - member firms perform an internal inspection every year and have a globally coordinated inspection by other member firms at least every three years Active involvement in national and international regulatory bodies and committees Active interest in shaping the industry via representation, comment and feedback Member firms apply global ethics and independence policies in accordance with the IESBA code

PEOPLE To provide an unparalleled level of client service we need to recruit and retain the very best. This means providing opportunities for staff to grow both personally and professionally.

Regional and global training initiatives

Full compliance with applicable CPD guidelines

Webcast and training programmes including the RSM Academy (leadership development) and RSM ITAX Academy (international tax)

Active RSM Secondment Programme

All member firms maintain internal people initiatives to retain and develop talent

RSM Innovation Committee

TO ENSURE WE ALWAYS REMAIN FOCUSED ON WORKING TOWARD OUR VISION WE APPLY FOUR CRUCIAL SUCCESS FACTORS THAT WE CALL THE ‘FOUR CORNERSTONES’.

BUSINESS DEVELOPMENT Business development is critical to maintain our exceptional high standards of client service and to ensure firms are continually developing the skills and knowledge required to work with clients from emergent industries.

Globally co-ordinated business development tools and processes including utilisation of Global and Regional Engagement Leaders Regional structure for service line delivery and business development initiatives Regional Centres of Excellence for risk advisory, financial due diligence, international tax and IFRS Sector expertise and focus groups for financial services, automative and others Sharing knowledge and insight through RSM publications Annual programme of global and regional meetings for member firms to develop relationships, build trust and technical and cultural knowledge A commitment to growth for ourselves and our clients

BRAND | PROFILE The RSM brand is a promise to clients that we will listen and endeavour to understand their needs and determine how we can add value for their future success.

Member firms must adhere to our policies and procedures before they are permitted to use the RSM brand RSM Communications Guidelines and brand resources Lead sponsor of the European Business Awards and the RSM International Entrepreneur of the Year award High-level sponsorship of industry events around the globe Use of social media to connect more efficiently with our clients and other stakeholders Established PR programme to build the reputation of the RSM brand and gain third-party endorsement Global brand monitoring and client engagement research Global thought leadership research and economic insights for the middle market RSM global website platform

RSM LEADERS Global Financial Due Diligence Leadership Group Ewan Grant, Chairman, UK Terence Ang, Singapore Lee Castledine, UK Michael Grossman, US Jos Raben, Netherlands Bobby Rooney, US Glyn Yates, Australia Lauren Summers, RSM EO Support

International Board of Directors Mike Kirley, Chairman, USA Joe Adams, USA Brian Eaton, South Africa Guillermo Erhard, Mexico Jorge Pérez, Argentina James Komninos, Australia Laurence Longe, UK Luc Toelen, Belgium Lars Løyning, Norway Wong Poh Weng, Hong Kong Gu RenRong, China

IFRS Advisory Committee Bob Dohrer, RSM EO Simon Fisher, Kenya Gary Stevenson, Hong Kong Victor Gomez, Columbia Nicky Warburton, UK Richard Stuart, USA Joelle Moughanni, RSM EO Support

Regional Leaders Clive Betty, Africa Anand Selvarajan, Europe Bassam Dahman, Middle East & North Africa Neil Hough, Asia Pacific Brendan Quirk, Latin America

Global Risk Consulting Committee Oliver Bungartz, Germany Marcelo Conti, Brazil Jean-Marc Imbert, Australia Rob Kastenschmidt, USA Richard Smith, UK Lauren Summers, RSM EO Support

Transnational Assurance Services Executive Committee Jean-Charles Boucher, France Jonathan Ericson, UK Henk Heymans, South Africa Susana MartÍnez, Mexico Jim Morton, USA Ged Stenhouse, Australia Stephen Wong, Hong Kong Steve Whitcher, RSM EO Support

Global Tax Leadership Group Rudolf Winkenius, Chairman, Netherlands Aristides Batista, Panama Francesco Gerla, Italy Paul Heiler, Australia John Jones, South Africa Ross Wilkinson, UK Flame Zheng, China Rob Mander and Caroline Walenkamp, RSM EO Support

Information Technology Committee Simon Harding-Rolls, UK David Hilland, UK Paul Joseph, Australia Jeff Wobbema, USA Sanjay Sood and Richard Jennings, RSM EO Support

FINANCIAL INFORMATION Global combined revenues for year ending December 2016.

By region

($m) 2016

($m) 2015

Variance ($m)

Variance (%)

26.5

26.5

0

0%

617.4

596.7

20.7

3%

1,011.6

1,009.0

2.6

0%

Latin America

71.2

71.3

-0.1

0%

Middle East and North Africa

38.1

39.4

-1.3

-3%

North America

3,100.9

2,898.5

202.4

7%

Total

4,865.7

4,641.4

224.3

5%

2016

2015

Variance ($m)

Variance (%)

Audit and accounting

2,332.8

2,272.7

60.1

3%

Tax

1,455.7

1,353.8

101.9

8%

983.9

909.8

74.1

8%

93.3

105.1

-11.8

-11%

4,865.7

4,391.2

224.3

5%

Africa Asia Pacific Europe

By service line

Consulting Other Total

RSM REPRESENTATION RSM has member and correspondent firms in the following countries.

AFRICA Angola Botswana Ghana Kenya Malawi

Mauritius Mozambique Nigeria South Africa Swaziland

Tanzania Uganda Zambia Zimbabwe

ASIA PACIFIC Australia Bangladesh Cambodia China Hong Kong India Indonesia

Japan Malaysia Myanmar New Zealand Pakistan Philippines Singapore

South Korea Sri Lanka Taiwan Thailand Vietnam

EUROPE Andorra Austria Azerbaijan Belarus Belgium Bosnia & Herzegovina Bulgaria Channel Islands Croatia Czech Republic Denmark Finland France Georgia

Germany Gibraltar Greece Hungary Ireland (Republic) Isle of Man Israel Italy Kosovo Luxembourg Macedonia Malta Netherlands Norway

Poland Portugal Romania Russia Serbia Slovakia Spain Sweden Switzerland Tajikistan Turkey Ukraine United Kingdom

LATIN AMERICA Argentina Bolivia Brazil Chile Colombia Costa Rica

Dominican Republic Ecuador El Salvador Guatemala Honduras Nicaragua

Panama Peru Uruguay Venezuela

MIDDLE EAST & NORTH AFRICA Afghanistan Guinea Bahrain Iraq Benin Ivory Coast Burkina Faso Jordan Cameroon Kuwait Chad Lebanon Congo Brazzaville Mali Egypt Morocco

Oman Palestine Qatar Saudi Arabia Senegal Tunisia United Arab Emirates Yemen

NORTH AMERICA & CARIBBEAN Bermuda Mexico Cayman Islands Puerto Rico

Turks & Caicos Islands United States

Services in other countries are provided through contacts and support from RSM member firms.

RSM Global Executive Office 50 Cannon Street London EC4N 6JJ United Kingdom T: +44 (0) 20 7601 1080 E: rsmcommunications@rsm.global rsm.global

RSM is the brand used by a network of independent accounting and consulting firms, each of which practices in its own right. The network is not itself a separate legal entity of any description in any jurisdiction.

The network is administered by RSM International Limited, a company registered in England and Wales (company number 4040598) whose registered office is at 50 Cannon Street, London EC4N 6JJ. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug. Š RSM International Association, 2017

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING