RSM Transparency Report 2020

Delivering the Power of Being Understood.

Transparency Report March 2020

A world leader in audit, tax and consulting services.

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CONTENTS Message from the Global CEO

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Message from the Global Leader, Quality & Risk

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RSM global network

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RSM people and culture

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Governance, leadership and management

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Ethics and independence

16

Quality–related policies and requirements

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Activities to assess and monitor quality

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RSM Centres of Excellence

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A message from the CEO 2019 was a year of significant change - for our clients, for our industry and for RSM as a global network. The rapid increase in the sophistication and application of technology has created an environment in which change now occurs so rapidly that businesses are constantly faced with new challenges and opportunities.

At RSM, we are committed to helping clients overcome challenges and to take advantage of opportunities.

We do this by forming deep, long-lasting client relationships and providing relevant ideas and insight through our service offering. We empower our clients to move forward with confidence by delivering on our brand promise – The Power of Being Understood.

As a global network of independently owned and operated firms, RSM’s core purpose is to bring our 43,000 professionals closer together to provide seamless crossborder services to their clients. While our global policies and procedures are fundamental to us working cohesively, true collaboration only comes when the collective shares the same values and vision for the future. Our member firms are united under the same high-quality standards – this is what they sign up to when joining RSM. However, cultural fit and shared beliefs are just as important as our member firms’ commitment to our global expectations.

You can discover more about our core beliefs of Understanding, Collaboration, and Ideas and Insight in this report. These beliefs are central to The Power of Being Understood and are underpinned by our shared global values of respect, integrity, teamwork, excellence and stewardship.

At RSM, we believe in fostering a culture of innovation, and we were pleased that Paul Herring joined us in 2019 as our Global Chief Innovation Officer. Paul brings vast experience through

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RSM | Transparency Report 2019

his time working in a number of innovation, risk and IT senior leadership roles in global professional services environments.

Working with RSM’s Global Digital Advisory Committee, Paul will oversee two complimentary projects that have already begun in earnest: the Digital Transformation Programme and the Innovation Change Programme. These two projects are inextricably linked, with the success of one relying on the success of the other.

Audit has also been a key focus for our ongoing transformation, with 2019 marking the launch of RSM Orb, our new global audit methodology and supporting platform that scales according to client complexity and circumstance. Over the past five years, the RSM Orb development team, drawn from across the network, has developed our new global audit solution, which comprises a methodology, software and tools that are adaptable to local legal requirements and compliant with the International Standards on Auditing.

Along with the RSM Orb development team, there are many people within the network who contribute their time and expertise to our various leadership groups and committees – that help to steer and guide the provision of our services and the way our network operates. Our thanks go to all those professionals for their dedication and commitment to the ongoing development and sustainability of RSM. Jean Stephens Chief Executive Officer

Strong collaborative relationships based on a genuine understanding.

RSM | Transparency Report 2019

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A message from the Global Leader, Quality & Risk My first full year at RSM has been both exciting and busy. I had the opportunity to meet partners and other leaders from member firms at their regional meetings in Dubai, Bangkok, Bogotá, Johannesburg and Warsaw as well as at our World Conference in Rome. I have also had the privilege of spending time with our Next Generation Leaders at our leadership programme, RSM Academy, in the Netherlands. Throughout, I was struck by the genuine optimism for the future of RSM through new initiatives around digitalisation, innovation and people.

It has also been a year of great activity with the launch of our new audit solution, enhancements in our ethics and independence processes and the formation of a team to drive the development of data analytics solutions.

The quality of our work across every service line is fundamental to our business–it is the bedrock of our network and a common foundation across all of our member firms. We are focused on ensuring member firms have the common methods and processes needed to continuously enhance the quality of the services they deliver.

To further enable a consistently high standard of auditing across our member firms, during 2019 we rolled out RSM Orb, our Optimal Risk-Based audit solution. This is the culmination of a multi-year project to develop a riskbased audit methodology that prioritises quality and has embedded functionality to enable efficiency. The RSM audit methodology has long been based on International Standards on Auditing (ISAs) but now the text of those Standards has been incorporated within RSM Orb to make it easier for RSM engagement teams to apply the ISAs throughout the audit.

New features and functionality have been added to the audit

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software to improve the flow of our audit process, aiding both navigation and the review process. The use of a common audit solution throughout the RSM network will aid consistency and high quality in both domestic and global audits.

To roll out RSM Orb, the network engaged in a significant worldwide training programme. Train-the-trainer sessions were held in regional centres that were attended by over 500 partners and staff from member firms. These delegates then trained their local firms and offices in RSM Orb. This classroom based training was supplemented with short guidance documents and videos that have been produced to remind delegates of key elements.

In addition to quality, the development of RSM Orb has other benefits for our network: Collaboration, one of RSM’s key values, is made much easier in RSM Orb when we have one way of doing things which we all understand and buy into.

RSM Orb will help enhance our market proposition as we now go to market with a truly global audit offering.

Prospective and current clients of member firms are demanding consistent performance across their global service providers and the new audit methodology will serve to meet those client demands.

Our people also benefit from RSM Orb because not only are they equipped with state-of-the-art tools, but those auditors who take part in our global mobility programmes will also be using familiar software and tools wherever they are in the world.

At the same time as launching RSM Orb, we formed a new group to review and address the opportunities and challenges presented by developments such as data analytics and artificial intelligence. This group will make recommendations for how we respond to these challenges and how RSM Orb may be adapted to incorporate solutions.

Ethics and independence underpin quality and shape the value and impact of the work our member firms deliver. We keep our ethics and independence policies and processes under continuous review to ensure they meet member firm needs driven by regulatory requirements. During 2019, our policies were reconsidered to ensure they reflected the revised and restructured International Code of Ethics for Professional Accountants, and monitoring processes were further enhanced.

2019 has been a year that has seen our profession challenged; public trust in audit is at a low level, the value and future of audit is being questioned, stakeholder expectations have changed, and technology is reshaping business and how we do our work. We have a long track record of active engagement with policy makers and regulators and remain committed to contributing and supporting developments to restore trust, underpin relevance and promote quality. These are challenging times, but I am excited and optimistic about the future.

Marion Hannon RSM Global Leader, Quality & Risk

RSM | Transparency Report 2019

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RSM global network

RSM is the brand name used by members of the RSM international network of independent professional services firms.

RSM member firms are all separate legal entities practising in their own right. The network is not itself a separate legal entity in any jurisdiction and membership of the network does not make any firm responsible for the services of other firms.

RSM International is a private company limited by guarantee.

It is the network umbrella company and does not provide services to clients.

Member firms are driven by a common vision of providing high quality professional services both in their domestic market and in serving the international professional service needs of their client base.

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.

As at December 2019, RSM is the sixth largest network of independent accounting and advisory firms, comprising members and correspondents in 120 countries with 810 offices, 43,000 total staff, and combined revenues in excess of US$5.74 billion of which approximately US$2.5 billion was derived from audit services.

Membership in the Forum of Firms RSM is a member of the Forum of Firms, 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. Marion Hannon currently represents RSM as a member of the Forum of Firms’ Transnational Auditors Committee.

GLOBAL REVENUE

US$ 5.74 bn PEOPLE

43,000 OFFICES

810 COUNTRIES

120+

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RSM | Transparency Report 2019

RSM global structure

Our global structure is aimed at executing RSM strategy and facilitating member firms to develop business together.

To facilitate the communication and coordination of actions and to share information and best practices to better acquire, retain and serve clients RSM is organised into five regions.

Committees

Board of Directors

Leadership Groups

The regional structures facilitate cross border collaboration.

Regional structures include Regional Councils and Regional Leaders, who are supported by Regional Coordinators.

Service Groups and CoEs

Member firms and our people

Sector Groups

Regional Councils

Regional Leaders and teams

Board SubCommittees

Key

TASEC

Communication lines Reporting lines

CEO and GEO RSM | Transparency Report 2019

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RSM people and culture

An important part of delivering quality is building a culture that promotes ethical values and, a clear focus on quality.

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 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.

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RSM | Transparency Report 2019

Through global and regional conferences, training programmes, our global mobility secondment programme and our Centre of Excellence structures, we encourage people from across the world to network with each other and form and develop close relationships to facilitate seamless service to clients across borders.

RSM operates a contributed hours concept. This all means RSM member firms are expected 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 and activities. Asking member firms to contribute their time to the network means member firms are personally committed to the success of RSM.

The Global People First Advisory Committee acts in a consultative capacity to member firms and is focused on assisting firms to create a culture that puts our people first.

In putting our people first, we create an environment that is positive, encouraging and inclusive - centered around continuous professional and personal development, where talent is identified, developed and valued. The RSM people first culture will focus on inspiring, encouraging and empowering our people to explore new ideas, to be granted the permission to learn, unlearn and re-learn in order to innovate and find new improved ways of working together. Current members are from member firms in South Africa, US, UK, Australia, and Norway.

The committee is supported by GEO staff.

RESPECT

INTEGRITY

TEAMWORK

EXCELLENCE

STEWARDSHIP

treat others as we would like to be treated

do the right thing

work together effectively

be the best in everything we do

better our network and members, and develop our people

We display respect in each interaction with:

We stay true to our beliefs in:

We cultivate genuine collaboration:

We achieve distinction through:

We make RSM a better place by:

Clients Employees Partners

Decisions Negotiations Communications

In work groups Across member firms Across functions Amongst leaders

Our standards Our operations The work we deliver

Developing our people Building our brand Supporting our communities

RSM | Transparency Report 2019

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Governance, leadership and management RSM International Board of Directors (“the Board”) The RSM International Board of Directors is the governing body of RSM International. Its objectives and responsibilities include: Creating, approving and overseeing implementation of The Power of Focus, the international strategy for the network Oversight of matters relating to membership of RSM, including admitting new members and expelling members Oversight of the ethical and effective leadership of the network Approving RSM International’s budget, operational plan and member firm fees Safeguarding the company’s assets and satisfying itself that the company has adequate systems and control processes Strategic risk management of RSM International and oversight of risk management policies and best practices Overseeing a process to ensure adherence to quality standards by member firms Assessing and determining the CEO’s remuneration Overseeing the composition and performance of the Board

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RSM | Transparency Report 2019

As at the date of this report the Directors of RSM International are: Mike Kirley, US, Chair Brian Eaton, South Africa Joe Adams, US Wong Poh Weng, Hong Kong Stefan Walter, Austria Guillermo Erhard, Mexico Cherif Hammouda, Egypt James Komninos, Australia Angela Simatupang, Indonesia Jorge Perez, Argentina Jean-Michel Picaud, France The Directors are appointed through a nomination process ensuring regional representation.

Directors are appointed for a period of 3 years, after which they become eligible for re-election for a further 3-year period. The Chair is also elected for a 3-year term and may be re-elected for up to two further three-year terms. Neither the Chair nor Directors are remunerated.

To assist in discharging its responsibilities, the Board has established five sub committees:

Committees

Purpose

Governance

Assist the Board in the discharge of its responsibilities relating to: Oversight of RSM membership matters Assessment of the processes, practices and the results relating to the Company’s governance Oversight of relevant existing governance documents

Nominations

Oversight of the administration of the Board appointment process

Audit

Assist the Board in the discharge of its responsibilities relating to: The safeguarding of the Company’s assets The operation of adequate systems and control processes The preparation of accurate financial reporting information and statements in compliance with all applicable legal and regulatory requirements and accounting standards

Remuneration

Assess and recommend to the Board the remuneration of the CEO and other senior management

Risk

Provide additional analysis to the Board regarding the strategic risk management of RSM International and to determine that risk management best practices and policies are established The Board’s Risk Committee collaborates with the Operational Risk Committee comprised of the CEO, Global Leader Quality & Risk and other Global Executive Office staff.

RSM | Transparency Report 2019

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Governance, leadership and management To ensure quality matters receive the time and attention necessary to drive uniform high-quality professional services the Board established the Transnational Assurance Services Executive Committee (TASEC ).

TASEC ‘s responsibilities include: Promulgation and monitoring of compliance with all standards issued by the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants Establishing policies and guidelines for both the RSM member firm inspection programme and the RSM global inspection programme Monitoring the management of quality assurance activities conducted by the RSM Global Executive Office Review of due diligence reports for the admission of new member firms Approval of global and member firm inspection reports, and action plans to address deficiencies identified from the global inspection programme Oversight of the development, promulgation and monitoring of compliance with the requirements of: » RSM Orb » RSM Quality Assurance and Risk Containment Policies » RSM Ethics and Independence Policies » RSM Anti-Bribery and Corruption Policies » P olicies and Procedures for the Global Inspection Programme and Member Firm Inspection Programme » R SM Assurance Services Training and Continued Professional Development Policies

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RSM | Transparency Report 2019

When appropriate, TASEC, upon recommendation of the GEO, also recommends sanctions against member firms as a result of non-compliance with the RSM policies, requirements and the Committee’s directives. The Board ultimately acts on any such recommendations.

The composition of TASEC is designed to ensure representation from across the RSM regions. According to its charter, TASEC consists of five to nine members of suitably qualified and experienced audit partners or equivalent from member firms. The chair of TASEC is selected by the Board from members of the Committee and serves for a term of three years and can be renominated at the end of the threeyear term. Current members of TASEC are from member firms in France, US, UK, Mexico and Australia. The Chair is from the member firm in South Africa.

Chief Executive Officer (CEO) The Chief Executive Officer (CEO) is appointed by and accountable to the RSM International Board.

The CEO has overall responsibility for leading on the execution of the network’s five year strategy, The Power of Focus, and to develop and grow RSM for its members. On an annual basis the CEO prepares and presents to the Board for approval an annual operational plan which outlines the key global activities to deliver against the strategy. The CEO works closely with the Board, regions, member firms, leadership teams and external advisors to deliver on the responsibilities of the role to execute on the operational plan and long-term strategy.

The CEO also leads the RSM Global Executive Office, based in London.

RSM Global Executive Office (GEO) The GEO is a global function primarily based in London. Its responsibilities include:

RSM Orb Global ethics and independence policies

Execution of the global strategy, The Power of Focus Financial health of RSM International Operation of the Global Member Firm Inspection Programme including compliance with network ethics and independence policies Development and maintenance of RSM Orb and oversight of member firm implementation Brand development and corporate messaging

RSM World Conference | Rome 2019

International client needs and business development International referral protocols Geographic coverage RSM Academies and other training initiatives RSM’s global intranet, RSM Link, and capabilities database Support to the technical committees and regional councils Within the GEO, the RSM Global Leader, Quality & Risk has oversight for the quality of assurance and other services provided by member firms. These responsibilities specifically include:

Implementation of RSM Orb

Meeting membership obligations of the Forum of Firms RSM quality assurance policies, procedures and inspections

RSM Academy | Netherlands 2019

RSM | Transparency Report 2019

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Ethics and independence

Ethics and independence policies RSM maintains ethics and independence policies which all member firms are required to adopt. These policies 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) International Code of Ethics for Professional Accountants (including International Independence Standards) Local professional organisations Local security exchange regulators Other relevant regulatory authorities RSM International policies, guidance and requirements

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). Member firms are required to use GRT to list assurance or non- assurance clients in the following categories: 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.

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 minimum RSM ethics and independence policies. Any amendments made to the basic RSM policies to include additional local requirements must be submitted to the GEO for review and must be approved by the Global Leader, Quality & Risk. Partners or professional employees who have a question regarding the RSM ethics and independence policies are required to consult promptly with their member firm’s partner Independence partner. If the member firm partner responsible for independence has a question regarding these policies, he or she consults with the GEO.

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

Partners and professional employees are required to annually complete an independence compliance questionnaire confirming that he or she:

Member firm partners and professional employees are also 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.

Has read the RSM ethics and independence policies Has read his or her member firm’s ethics and independence policies Understands the 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 a member firm.

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RSM | Transparency Report 2019

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 Ethics and Independence 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.

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 GEO.

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. The ICP 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 GEO and the Chair of the Board are requested to consider the potential impairment of independence or conflict of interest. The member firms provide the GEO 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. The GEO and the Chair of the Board will 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.

RSM | Transparency Report 2019

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Quality–related policies and requirements Client acceptance/continuance

RSM Orb

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.

Quality is the absolute cornerstone for RSM. To reinforce the message that audit quality is of the utmost importance in RSM the GEO working together with several larger member firms has developed and rolled out RSM Orb our risk-based audit solution. It is comprised of four elements:

These client acceptance criteria include:

Proprietary Global Audit Methodology

The client acts with integrity

Global Audit Manual

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

RSM template housed in licensed software

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 partner, 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.

Guidance In accordance with our strategy to achieve common methods and processes across the network RSM Orb is required to be used by all member firms for all audits with year–ends of 31 December 2019 or later. To assist local implementation, RSM Orb is translated into Spanish, French, German, Russian and Chinese.

RSM Orb is user friendly, easy to navigate and understandable.

RSM Orb includes requirements for engagement quality control reviews and mandatory consultations with a member firm’s Head of Audit, Head of Ethics and Independence (or their designees) or another suitably qualified partner, as appropriate.

RSM Orb 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 Member firms tailor RSM Orb to include additional requirements arising from local laws and regulations in each jurisdiction.

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RSM | Transparency Report 2019

Activities to assess and monitor quality Global inspection and RSM member firm monitoring programmes 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 and other professional services practices are relevant, adequate, operating effectively, are aligned with RSM expectations and all requirements established by the International Federation of Accountants (IFAC) standard- setting 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:

A 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 International 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 Global Executive Office personnel and the Global Leader, Quality & 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.

The RSM International Board has the authority to impose sanctions on a member firm to ensure compliance with professional requirements and RSM methodologies, policies and procedures.

The extent of the firm’s alignment with RSM policies and procedures The 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

RSM | Transparency Report 2019

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Activities to assess and monitor quality Other quality activities Member firm admissions RSM seeks to admit new member firms that share the RSM vision, purpose, strategy and values. Each prospective new member firm is subjected to a due diligence review, the outcome of which forms the basis for deciding whether or not to admit the firm as a member firm of RSM. The due diligence reviews are conducted by qualified independent partners and senior personnel from current RSM member firms under the direction of GEO personnel and the Global Leader, Quality & Risk. The outcome of the due diligence review is considered by TASEC. The CEO then makes a membership recommendation to the RSM International Board of Directors, which ultimately decides on admission of the firm to RSM.

Special Reviews A special review of a firm member firm is undertaken on instruction of the CEO when significant matters arise in relation to quality or other member firm matters. The reviews are conducted by appropriately independent partners and senior personnel from other RSM member firms under the direction of GEO personnel and the Global Leader, Quality & Risk. The Board has the authority to impose specific requirements, sanctions or to terminate the firms membership

Secondments Larger firms in the network are occasionally requested by TASEC to second resources to assist firms with which RSM has a long relationship and are of strategic importance to the network.

Such secondments are to enable firms improve compliance with International Standards on Auditing and other requirements such that they may be considered for membership of the network.

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RSM | Transparency Report 2019

RSM Centres of Excellence RSM Centres of Excellence (CoE), service line groups and sector groups CoEs, service line and sector groups serve to enhance member firm core competencies in services delivered and play a critical role in our international business development efforts.

The groups are resourced by professionals from various member firms who aim to establish common practices, facilitate seamless regional delivery and align our resources.

COEs are particularly focused on building and developing capabilities and as such improving the quality of services internationally.

The purpose of service line groups is to promote consistent services, share best practices and to explore ways in which our collective expertise can be used.

Sector groups seek to ensure engagement teams across member firms understand the implications of sector issues that impact clients and apply deep expertise whether it be through delivering audit, tax or consulting services.

RSM CoE Global IFRS CoE Global International Tax CoE Global Risk Advisory CoE

RSM service line groups Global Financial Due Diligence Group Global Legal Group

RSM sector groups Automotive Financial services Real estate

Other relevant activities A Data Analytics Working Group comprised of individuals from member firms who are actively using or piloting data analytics solutions has been established to explore data analytics solutions for audits suitable for use across the network. A key focus is continued enhancement of audit quality. The group reports to TASEC. The Global Digital Advisory Committee acts in an advisory capacity to member firms and the Board. As well as providing impetus to digital activities it aims to ensure strategic technology initiatives that support key business requirements are aligned with network and member firm needs.

RSM | Transparency Report 2019

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Global combined revenues for year ending December 2019 classified according to the International Accounting Bulletin World Survey.

By region

($m) 2019

($m) 2018

Variance ($m)

Variance (%)

37.0

38.0

-1.0

-2.6

Asia Pacific

625.1

589.4

35.7

6.1

Europe

998.6

1,161.2

-162.6

-14.0

Latin America

126.2

133.9

-7.7

-5.7

44.1

43.4

0.7

1.6

North America

3,908.4

3,403.5

504.9

14.8

Total

5,739.4

5,369.4

370.0

6.9

($m) 2019

($m) 2018

Variance ($m)

Variance (%)

Audit and accounting

2,561.8

2,486.6

75.2

3.0

Tax

1,820.3

1,629.4

190.9

11.7

Consulting

1,245.9

1,162.0

83.9

7.2

111.4

91.4

20.0

21.9

5,739.4

5,369.4

370.0

6.9

Africa

Middle East

By service line

Other Total

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RSM | Transparency Report 2019

RSM REPRESENTATION RSM has member and correspondent firms in the following countries, reflecting our regional structure.

AFRICA Angola Botswana Eswatini

Ethiopia Ghana Kenya

Malawi Mauritius Mozambique

South Africa Tanzania Uganda

Zambia Zimbabwe

China Hong Kong, SAR China India Indonesia

Japan Malaysia Myanmar New Zealand

Pakistan Philippines Singapore South Korea

Sri Lanka Taiwan Thailand Vietnam

Channel Islands Croatia Cyprus Czech Republic Finland France Georgia Germany Gibraltar

Greece Hungary Ireland (Republic) Isle of Man Israel Italy Kazakhstan Kosovo La Reunion

Luxembourg North Macedonia Malta Mayotte Netherlands Norway Poland Portugal Romania

Russia Serbia Slovakia Spain Sweden Switzerland Tajikistan Ukraine United Kingdom

Costa Rica Dominican Republic Ecuador El Salvador

Guatemala Honduras Nicaragua Panama

Peru Uruguay Venezuela

Kuwait Lebanon Morocco Mauritania Oman

Palestine Qatar Saudi Arabia Senegal Tunisia

ASIA PACIFIC Afghanistan Australia Bangladesh Cambodia

EUROPE Albania Andorra Austria Azerbaijan Belarus Belgium Bosnia & Herzegovina Bulgaria

LATIN AMERICA Argentina Bolivia Brazil Colombia

MIDDLE EAST & NORTH AFRICA Bahrain Benin Burkina Faso Chad Egypt

Gabon Guinea Iraq Ivory Coast Jordan

United Arab Emirates

NORTH AMERICA & CARIBBEAN Bermuda Canada Cayman Islands Mexico Puerto Rico

Turks & Caicos United States of America

RSM representation as at 31 December 2019

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RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practices in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. The RSM 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, 2020