Transparency Report
Year ended 30 June 2023
William Buck Transparency Report 2023 | 1
“William Buck is proud of our high-quality audit services to public interest entities. We continue to prioritise investment in our audit services.” Jamie McKeough Chair
2 | William Buck Transparency Report 2023
Contents Messages
Part A
Part B
05 Message from the William Buck Chair
10 Legal structure and ownership
32 Introduction
07 Message from the Audit Leaders
11 Praxity International Alliance
William Buck Group
13 Governance and leadership 16 Ethics, integrity and independence 18 Quality management 26 People, learning and culture 29 Effectiveness of William Buck’s system of quality management
William Buck Audit (VIC) Pty Ltd William Buck Audit (WA) Pty Ltd
33 Director remuneration model 34 Financial information for William Buck Audit (VIC) Pty Ltd 35 Financial information for William Buck Audit (WA) Pty Ltd 36 Audited bodies of William Buck Audit (VIC) Pty Ltd 37 Audited bodies of William Buck Audit (WA) Pty Ltd 38 External quality assurance reviews 39 Contact
William Buck Transparency Report 2023 | 3
Jamie McKeough Chair William Buck Group
4 | William Buck Transparency Report 2023
Message from the William Buck Chair For over a century, William Buck has been driven to make a positive impact on the lives of our people, clients and communities. Today, one of the ways we do this is by living our values of being collaborative, aspiring, relationship-driven and enterprising. These values guide the way we interact with each other, our clients and our key stakeholders. Our Code of Conduct is an extension of our shared values and articulates the ethical principles to which we hold ourselves accountable: integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. We recognise that integrity is a crucial aspect of building trusted relationships with our stakeholders and that honesty, transparency and accountability are key influencers of trust. We have continued to grow our business, including our audit practice, this year. In fact, we achieved record growth in our director numbers, which now stand at over 135, and have reached a milestone of over 1,000 professionals employed across the group. Many of our new directors were promoted from within, reflecting our strong learning and development framework and focus on forging pathways to progression. This is also evidence of our collaborative culture, which has seen the firm achieve several workplace awards and accolades this year including Prosple’s ‘Overall Workplace in Accounting & Finance’ and GradAustralia’s ‘Top Grad Employer’. We welcomed key leadership changes throughout the year, to further support our focus on succession and building a sustainable workforce. On 1 January 2023, Clyde Young stepped down from his seat on the Board and role as NZ Managing Director, with Darren Wright assuming these positions. We welcomed further changes from 1 July 2023 when NSW Managing Director Nick Hatzistergos and WA Managing Director Mark Collins were succeeded by Greg Travers and Conley Manifis respectively.
These changes will steward the William Buck Group into its next stage of growth and support continual evolution, enabling us to provide the best quality advice and support for our clients. In this Transparency Report for the year ended 30 June 2023, we demonstrate the quality management systems and governance structures we have implemented to enable our audit practitioners to deliver high-quality client services. We are proud of the commitments we have made to continuous improvements in audit quality and we welcome the opportunity to engage with our stakeholders on how we deliver high-quality audit services to our clients through the publication of our Transparency Report.
Jamie McKeough Chair William Buck Group
William Buck Transparency Report 2023 | 5
The Audit Leaders
Nicholas Benbow Audit Leader William Buck Audit (VIC) Pty Ltd
6 | William Buck Transparency Report 2023
Grant Martinella Chair Audit Focus Group
Conley Manifis Managing Director WA and Audit Leader William Buck Audit (WA) Pty Ltd
Message from the Audit Leaders William Buck has demonstrated ongoing growth and evolution in our audit and assurance practices across Australia and New Zealand in 2023. Our key objective is to deliver high-quality audit services to our clients to support the effective functioning of the financial reporting system, founded on ethics and integrity. One of the most significant developments in the audit profession this year was the implementation of the new quality management standards issued by the auditing and assurance standards boards in Australia and New Zealand. These standards have raised the bar for auditors to adopt quality management systems that enable the consistent delivery of quality audits. We have dedicated substantial resources to review and enhance our policies, procedures, and frameworks to enable full compliance. Our Group Risk team has been actively involved in monitoring the implementation of our quality management system, allowing us to promptly act on any improvement opportunities identified. Our Audit Methodology Committee (AMC) has been increasingly active. The AMC’s purpose is to enhance the quality and effectiveness of our audit procedures, systems and overall methodology. It achieves this by streamlining processes and providing our auditors with technical and practical insights to continually improve our service offering. Key to our strategy is automation and technology adoption which drives efficiency and effectiveness, offers valuable insights and allows us to allocate more time to critical risk assessment and complex audit matters. We have established an Audit Technology Group to explore new tools and innovations which will benefit both clients and professionals and support high-quality outcomes. Moreover, as the pandemic-related restrictions have been lifted, we have resumed in-person training sessions, conferences and secondment of auditors from the Praxity
International Alliance of which we are a member. This approach not only promotes immediate interaction and hands-on learning, fostering personal and professional growth, but also reinforces our commitment to knowledge sharing and continuous improvement. Our strength lies in our people and their growth remains central to our goal of delivering exceptional services to our clients and stakeholders. As we move forward in this dynamic landscape, we will continue to adapt to changing circumstances, uphold the highest standards of quality and seek innovative solutions. Thank you for your continued support and trust in our services.
Grant Martinella Chair Audit Focus Group
Nicholas Benbow Audit Leader William Buck Audit (VIC) Pty Ltd
Conley Manifis Managing Director WA and Audit Leader William Buck Audit (WA) Pty Ltd
William Buck Transparency Report 2023 | 7
Part A
William Buck Group
8 | William Buck Transparency Report 2023
William Buck Transparency Report 2023 | 9
Legal structure and ownership Established in 1895, William Buck has been helping people and their businesses for over 125 years. The William Buck Group has a combined turnover of over $177 million and has over 135 directors and a 1,000+ strong team across Australia and New Zealand. We have offices in Sydney, Parramatta, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Auckland and Tauranga. Although independently owned, our offices work together as a group. This philosophy allows us to seamlessly offer the same high-quality services and solutions across all our locations.
Legal structure William Buck is an association of six accounting and advisory member firms. Each member firm is owned and operated at the local level and is licensed to be a member of the Group through William Buck Limited (WBL).
10 | William Buck Transparency Report 2023
WBL is the custodian of William Buck’s intellectual property and engages specific personnel to manage the various elements of William Buck including quality management, risk, technical support, learning and development and marketing. WBL is an Australian Public Company limited by guarantee and its members are the Group member firms. A member firm of WBL cannot act as an agent of WBL or any other member firm and is only liable for its own acts or omissions and not those of WBL or any other member firm. WBL has no right or ability to control any member firm’s exercise of professional judgement. Statutory audits are conducted at the member firm level either through a partnership or authorised audit company. Each member firm engages with clients using consistent methodology, quality management policies and procedures and the same strict standards for ethics and independence.
Praxity International Alliance William Buck is a member of Praxity, the largest professional services alliance in the world. Praxity unites more than 71,000 people in independent professional audit, tax and advisory services firms in over 120 countries, who remain independent to best serve their clients. Praxity represents some of the strongest and most skilled minds in our profession. Participant firms are selected for their size, strength and leadership positioning with strategic geographic relevance. Nikolas Hatzistergos, Executive Chairman of William Buck NSW, is a member of the Praxity Management Board, Governing Council and Membership Committee. Praxity has a simple, cohesive, three-tier reporting and management structure, ensuring full transparency and proportional regional representation. It works effectively and efficiently.
Praxity’s Membership Committee scrutinises membership applications and then makes recommendations to the Board regarding applications and subsequent classifications. Membership Committee appointments are made by the Chair, with Management Board approval. Praxity has won Accounting Association of the Year in 2021, 2019, 2017, 2016 and 2014; Thought Leadership Initiative of the Year in 2020 and Campaign of the Year in 2018.
Three-tier reporting and management structure
1.
2.
3.
Annually, Praxity holds at least one General Meeting (AGM), where all participant firms vote on and approve standard matters including budgets, appointments of the Governing Council, the major policies and high-level strategic direction.
The Praxity Governing Council refines and focuses the Alliance’s strategic direction. Elected council seats are voted for by firms within the five regions. Governing Council members can serve two consecutive three-year terms.
The decision on whether to admit new participants, plus many other duties, rests with the nine Praxity Management Board members, who direct and manage the alliance’s activities. The Management Board is elected by and from the Governing Council.
William Buck Transparency Report 2023 | 11
The Group Board
Junaide Latif Managing Director Queensland
Darren Wright Managing Director New Zealand
12 | William Buck Transparency Report 2023
Jamie McKeough Chair and Managing Director South Australia
Lindsay Holloway Managing Director Victoria
Conley Manifis Managing Director Western Australia
Greg Travers Managing Director New South Wales
Governance and leadership William Buck has two key levels of governance that work in parallel with one another: brand governance and business governance. Governing the brand The WBL Board is responsible for the management of the William Buck brand. The Board consists of each member firm’s Managing Director. As at 30 June 2023, the WBL Board Members were: — Nikolas Hatzistergos, New South Wales
— Junaide Latif, Queensland — Jamie McKeough (Chair), South Australia — Lindsay Holloway, Victoria, and — Mark Collins, Western Australia.
— Darren Wright, New Zealand
The Board actively supports William Buck’s success through its commitment to providing high-quality services as mid-market specialists, embracing a culture of care, collaboration and innovation to deliver exceptional results as well as to drive personal and professional growth.
Director changes from 1 July 2022 The following directors retired as Managing Directors of their respective member firms and the WBL Board:
The Chair is determined annually through a vote by each WBL Board member and is ratified at the Annual General Meeting.
— Clyde Young, New Zealand (at 31 December 2022)
The WBL Board oversees the following:
— Nikolas Hatzistergos, New South Wales (at 30 June 2023)
— Risk and quality management. The activities of these functions are undertaken on behalf of the Board by Group Risk.
— Mark Collins, Western Australia (at 30 June 2023). The following directors were appointed as Managing Directors of their respective member firms and the WBL Board: — Darren Wright, New Zealand (from 1 January 2023) — Greg Travers, New South Wales (from 1 July 2023) — Conley Manifis, Western Australia (from 1 July 2023).
— Professional indemnity insurance management. — Learning and development. The activities of this function are undertaken on behalf of the Board by Group Learning and Development. — Brand and marketing strategy. The activities of this function are undertaken on behalf of the Board by the Group Marketing Team.
William Buck Transparency Report 2023 | 13
Governance and leadership (cont’d) — Technical support. The activities of this function are undertaken on behalf of the Board by Group Technical. — The activities of the Group focus groups. The goals of the focus groups are to leverage Group capability, build market presence and deliver high-quality solutions to clients. At 30 June 2023, the following Group focus groups were operating: — Audit*, Grant Martinella Chair — Taxation, Greg Travers Chair
— Business Advisory, Neil Brennan Chair — Wealth Advisory, Scott Girdlestone Chair — Corporate Finance, Mark Calvetti Chair — General Manager, Amanda Anderson Chair — Restructuring and Insolvency, Garth O’ConnorPrice Chair — IT, Kent Sharp Chair — People & Culture / HR, Vanessa Blackshaw Chair — Marketing, Eireann O’Brien Chair
Governing the business Each member firm’s Managing Director leads their firm’s business and marketing strategies in a manner that supports the WBL Board initiatives. This includes: — Quality management — Attraction and retention of quality personnel — Organic growth strategies — Acquisition strategies — Tailored client services — Industry specialisation
Each member firm’s Managing Director is supported by an executive Board. The role of the Managing Director is to effectively execute the Group’s and local firm strategy within their own firm, which encompasses decisionmaking on financial and operational matters, financial objectives, financial resource management and personnel management. Each member firm’s Managing Director reports formally to the WBL Board on a regular basis in a comprehensive and consistent format. Reporting includes: financial information, marketing and brand management activities, human resources, quality management issues and any potential professional indemnity issues.
— Development of new service offerings.
*The Audit Focus Group membership comprises the Audit leaders of each firm. The group meets at least quarterly and drives an agenda supporting the delivery of high-quality audits. An Audit Methodology Sub-Committee leads continuous improvement in the audit methodology and tools available to practitioners, while an Audit Technology Sub-Committee focuses on technology solutions.
14 | William Buck Transparency Report 2023
Governance and leadership (cont’d) The two levels of governance come together as follows:
William Buck Limited (WBL) Risk and Quality Management, including Technical Support
Learning and Development
Group Focus Groups
Brand Management and Marketing Strategy
WBL Board Members — Managing Directors of Member Firms
William Buck Member Firms
Business Unit Focus Groups
NSW
NZ
QLD
Audit & Assurance
Taxation
Business Advisory
SA
VIC
WA
Corporate Finance
Wealth Advisory
Restructuring & Insolvency
William Buck’s organisational structure and assignment of roles, responsibilities and authority is structured appropriately to facilitate the design, implementation and operation of the firm’s quality management system.
William Buck Transparency Report 2023 | 15
Ethics, integrity and independence Our clients put their trust in us and we have a responsibility to demonstrate appropriate behaviours that sustain this trust while upholding our proud reputation for quality and service excellence. Ethics and integrity Our Code of Conduct is an extension of our shared values and culture; where our people lead with expertise and passion, serve with purpose and professionalism and share their insights and expertise to help others. Our Code articulates the ethical principles to which we all must hold ourselves and they are non-negotiable. They are centered around integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. We launched an ethics eLearning module to all staff during the year to reinforce these expectations and remind us of the trust that businesses, governments and society place in our profession and our responsibility to always do the right thing. In addition, directors are attending a Leading with Integrity workshop to reinforce our ethical culture, discuss ethical decision-making and blind spots and how we continue to foster an ethical culture at William Buck.
16 | William Buck Transparency Report 2023
Integrity builds trust Influences of trust:
Honesty
Transparency
Accountability
Ethics, integrity and independence (cont’d) Independence
that emanate from servicing clients
Maintaining independence is key to compliance with the ethical principles of integrity and objectivity. William Buck has prescriptive policies and procedures concerning independence in all assurance and nonassurance business units, in all member firms. They are designed to identify potential conflicts of interest so that conflicts can be dealt with in line with the requirements of APES 110 – Code of Ethics for Professional Accountants (including Independence Standards) and the Corporations Act 2001. Our strong culture supporting the independence imperatives is underpinned by mechanisms to appropriately deal with directors and staff who do not comply with the requirements.
— Personal direct or indirect financial interests — The appropriateness of non-audit services to audit clients, and — The appropriateness of business relationships.
Annual compliance declaration All directors and staff are required to complete an annual compliance declaration to confirm their compliance with the William Buck Code of Conduct, independence and related policies and the applicable professional and legal requirements. New and returning directors and staff are required to confirm their independence as part of the onboarding process.
An environment of open consultation has been established over many years such that directors and staff from member firms consult on: — Independence issues (potential, actual or perceived)
Independence framework
Group-wide conflict checking
Formal client acceptance process in all business units
Restricted entities listing – Group wide
Requirement to consult prior to acceptance of non-audit services where conflict is identified
Independence Policy
Annual declaration of compliance with William Buck’s policies and procedures in relation to ethics and independence. Completed by all directors, staff and contractors
Relevant to audit only include: — Independence sign-off at the planning and completion phases of the audit for all audit engagements — s307C Independence declarations for Corporations Act 2001 engagements — Audit director rotation policies
William Buck Transparency Report 2023 | 17
Quality management Compliance with quality management standards Adopting an effective system of quality management is paramount to delivering quality services. During the period, Group Risk and the Audit Focus Group reviewed our policies, procedures and processes to enable compliance with the new and revised quality management standards issued by the auditing and assurance standards boards in Australia and New Zealand. This involved setting clear quality objectives, proactively identifying the risks to achieving the objectives and mapping our policies, procedures and processes that help minimise those risks from occurring. Where appropriate, we enhanced our systems. We also updated our resources, such as the Engagement Quality Review and quality management checklists in the audit tool, to enable compliance.
The quality management standards issued are: — ASQM 1 Quality Management for firms that perform audits or reviews of financial reports and other financial information, or other assurance or related services engagements/ PES 3 Quality Management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements. — ASQM 2/ PES 4 Engagement quality reviews, and — ASA 220 Quality Management for an audit of a financial report or other historical financial information / ISA (NZ) 220 (Revised) Quality Management for an audit of financial statements.
System of quality management The components of our system of quality management are illustrated below: Risk asssessment process
Governance and leadership
Relevant ethical requirements
rces sou Re
and technology tion a rm fo In
Acceptance and continuance
A quality audit
Engagement performance
Client acceptance and continuance
Monitoring and remediation process
18 | William Buck Transparency Report 2023
Quality management (cont’d) Responsibility and accountability Each member firm’s ultimate responsibility and accountability for the quality management system lies with the Managing Director. They possess an understanding of the quality management standards and are tasked with evaluating and ensuring the system’s effectiveness in achieving its objectives. Operational responsibility for the system of quality management is assigned to the Audit Leader of each member firm. The Audit Leader is accountable for designing, implementing and operating the system while also maintaining an in-depth understanding of the quality management standards. Importantly, the Audit Leader maintains a direct line of communication with the Managing Director, fostering seamless coordination and oversight. Operational responsibility for specific aspects of the system of quality management, such as the monitoring process, is assigned to Group Risk which communicates results to the Audit Leaders, Managing Directors and WBL Board.
Leading from the top As outlined in our strategic plan, delivering highquality services to our clients is a top priority for us. We recognise that delivering quality audit services not only strengthens our relationships but also upholds the public interest and supports the effective functioning of the financial reporting system. By prioritising quality, we safeguard William Buck’s brand and reputation while providing value to our clients. The WBL Board therefore plays a vital role in promoting a culture of quality across all member firms and their audit practices, as their actions and attitudes set a consistent and clear message about the importance of quality in all engagements.
The WBL Board’s commitment to quality is demonstrated as follows: — Leading by example: The WBL Board embodies a strong commitment to quality in their own actions and behaviours. It makes decisions that reflect its commitment to maintaining high standards in all engagements, and members serve as role models for the entire firm, as outlined in the WBL Board Charter. — Leader communication: Our leaders, including the Chair, Chief Operating Officer and Chief Risk Officer, actively communicate and reinforce the significance of quality through various communication channels. — Commitment to continuous improvement: The WBL Board, together with Group Risk, Group Technical, Group Learning and the Audit Focus Group, champion our investment in evolving the audit methodology, tools and other resources needed to support and continuously improve audit quality. — Dedicated resources: The Group allocates resources to allow our quality frameworks to remain current. During the year, this included investing in additional audit specialist technical expertise to enhance the capability to support audit quality programs. — CARE Values The WBL Board, guided by the William Buck values of CARE—Collaborative, Aspiring, RelationshipDriven and Enterprising—demonstrates a commitment to quality. Upholding these values, the WBL Board sets the tone at the top, fostering a culture of innovation, strong relationships and collaboration, all aimed at delivering quality services and exceptional client service.
William Buck Transparency Report 2023 | 19
20 | William Buck Transparency Report 2023
Quality management (cont’d) Client acceptance and reacceptance Client acceptance and reacceptance considerations are the first key step in delivering audit quality. Client acceptance procedures are conducted prior to formally accepting a client and then reacceptance is performed annually prior to commencing the current year’s engagement.
William Buck has rigorous policies, procedures and approval processes in place which are conducted prior to accepting clients to be associated with the William Buck brand. This process involves a comprehensive assessment using a scorecard-based framework. This framework assigns scores to different risk factors, guiding the level of consultation and involvement required from the Managing Director and Group Risk.
Key aspects of client acceptance and reacceptance risk assessment criteria Conflicts of interest & independence assessment
— Group-wide conflict checks performed to identify any potential conflicts of interest. — Any proposed non-assurance services are assessed to ensure no impairment to audit independence and if necessary, safeguards are put in place or engagements declined. — Determine whether financial interests and other relationships of the engagement team, and where relevant, the wider firm, exist.
Client risk assessment
— Integrity of the client, including the reputation of principal owners, key management, and those charged with governance. — Nature of the client’s operations and industry characteristics.
Engagement risk assessment
— Team member capability and available time. — Adequacy of fee to ensure a quality audit can be conducted. — Expertise of specialists when proposed to be used.
The risk-based audit approach We adopt a risk-based audit approach as a fundamental principle in conducting our audit engagements. This approach involves the engagement team obtaining an understanding of various aspects of the audited entity and its environment. By gaining this insight, we can identify and assess areas where potential risks may exist.
Understand the entity
Identify risks
We tailor our audit procedures to specifically respond to the risks identified, focusing the audit effort on the areas of greatest significance. By taking a risk-based approach, we optimise the allocation of our resources and enhance the quality and effectiveness of the audit process.
Assess risks
Respond to risks
William Buck Transparency Report 2023 | 21
Quality management (cont’d) Professional scepticism and professional judgment The mindset of professional scepticism, coupled with sound professional judgment, is a fundamental behavioural requirement for all audit professionals. At William Buck, we recognise the critical importance of fostering this mindset and we actively promote and reinforce it through our comprehensive approach which encompasses policies, procedures, training and ongoing evaluation of our audit personnel.
Professional scepticism involves a questioning mind as well as a critical assessment of audit evidence. Professional judgement is the informed decision-making process that applies training, knowledge and experience in the circumstances of an audit engagement. By integrating professional scepticism and judgment into our practices, we enhance the quality and effectiveness of our audit engagements.
Supervision and reviews The engagement director takes overall responsibility for managing and achieving high standards of quality on their engagements. They must have the appropriate competence, capability and authority to lead the engagement.
Our policies and procedures in relation to audit supervision and review that apply to all audit engagements are outlined below.
Review conducted
The review is conducted by
Purpose of the review
At least one level of detailed review
A member of the engagement team that has more experience than the person who completed the work
Consideration of:
Director
Consideration of, at a minimum:
Overriding review
— The work has been completed appropriately in line with the audit plan and meets the requirements of the auditing standards and where relevant, professional pronouncements and legislation. — Significant matters have been raised for further consideration. — There is a need to revise the nature, timing and extent of work performed. — The work performed supports the engagement output and is appropriately documented. — The engagement was appropriately planned in accordance with legal and/or professional requirements. — Significant matters or judgements, including those relating to difficult or contentious matters. — Appropriate consultations have taken place and the resulting conclusions have been documented and implemented. — The output, including formal written communications to management, those charged with governance or regulatory authorities. — The work done and evidence obtained is sufficient and appropriate to support the engagement output. — The objectives of the engagement procedures have been achieved.
22 | William Buck Transparency Report 2023
Quality management (cont’d) Engagement Quality Reviewer An Engagement Quality Reviewer (EQR) provides an objective evaluation of significant judgements made by an engagement team and conclusions reached in formulating the relevant report. An EQR is assigned to all Public Interest Entities. Additionally, an EQR is assigned to other high-risk audits, as deemed necessary in line with the Group’s Quality Management Manual. Key aspects considered by the EQR include: — Fulfillment of the relevant ethical requirements relating to independence. — Appropriate conclusions made by the audit team in relation to matters of significant judgment, with appropriate documentation and conclusions in the work papers.
— Any communication from internal monitoring programs. — Appropriateness of the financial statements and audit report, including the description of key audit matters if applicable. — Whether appropriate consultation has taken place on difficult or contentious matters, along with the resulting conclusions. EQRs are experienced and independent audit directors or principals, possessing the competence, capabilities and authority to make an objective evaluation of the engagement team’s significant judgments and conclusions. These EQRs are required to be registered company auditors with sufficient time to conduct the review effectively.
Collaborative consultation culture William Buck fosters a collaborative consultation culture, recognising that it is a fundamental element of professional practice. All staff are encouraged to consult on challenging or contentious matters, particularly those that fall outside their personal experience or require setting precedents. This collaborative process involves
the use of appropriate research resources, collective experiences and discussions with individuals possessing specialised expertise. This contributes to improved decision making and the delivery of quality solutions to complex challenges.
William Buck Transparency Report 2023 | 23
Quality management (cont’d) Review conducted
When review is required
The review is conducted by
Financial statements preissuance
Listed and higher public interest Group Technical entities are reviewed annually if certain criteria are met, otherwise every alternate year.
To assess the financial statements for compliance with the Financial Reporting Framework.
Audit opinions
All engagements where an Experienced emphasis of matter, material Director Panel, uncertainty or modification is Group Technical being considered. Otherwise, all long form audit reports for new clients and new or revised key audit matters.
To consider and review the appropriateness of the proposed audit report and the wording of the modification, material uncertainty or emphasis of matter.
Consultations
Mandatory consultations are required in specific circumstances following the Consultation Policy. In addition, teams also consult on a professional judgement basis.
To support engagement teams to adopt the correct interpretation for difficult or contentious issues.
Group Technical, Corporate Finance, Tax, other experts
Purpose of the review
Our consultation culture Consultation is key to delivering high quality audits. In addition to formal consultation requirements, we have a strong consultative culture where directors regularly consult with other practitioners or the technical team outside of the policy requirements.
Differences of opinion
Audit director rotation
Any difference of opinion between engagement team members are referred to the engagement director. Differences of opinion between the engagement director, Group Technical and/or other specialists are escalated to the Audit Leader, the Chief Risk Officer or Managing Director, depending on the circumstances. The engagement output is not issued until the difference is resolved.
Regular rotation of the engagement director and EQR roles is also seen as a fundamental pillar to audit quality. Fresh eyes bring a fresh perspective and this is a key ingredient to overall audit quality.
24 | William Buck Transparency Report 2023
The William Buck director and EQR rotation policy is in line with the requirements of APES 110 – Code of Ethics for Professional Accountants (including Independence Standards) and the Corporations Act 2001. A rotation register is maintained by each Audit Leader to ensure that rotation is appropriately managed at the member firm level.
Quality management (cont’d) Information and communication Internal communication We understand the importance of effective communication in supporting audit quality and use a range of communication channels to deliver or reinforce key messages. These include Group Risk newsletters, Focus Group meetings, director forums, firm webinars, technical information sessions and training modules. We also hold an annual group-wide director conference, and an in-person meeting of audit directors beforehand, to facilitate networking and sharing of knowledge. Moreover, given the size and nature of William Buck, direct interactions enable us to build strong relationships based on trust, with leadership and personnel within the firm. This comprehensive approach to internal communication nurtures a well-informed and cohesive workforce, driving success and growth. External communications We value open and transparent communication with our clients. Our commitment to consistent, frequent and transparent communication is instrumental in building and maintaining trust with our clients. Communicating to management and those charged with governance
Significant matters that need to be raised with management and/or those charged with governance are communicated in writing. This includes the audit plan before commencing the audit. At the completion phase, we communicate any key findings and provide our audit response to significant risk areas and recommendations on any deficiencies noted.
Our goal is to proactively share industry insights and best practices, empowering our clients to make wellinformed financial decisions and stay compliant with evolving requirements.
Internal quality monitoring William Buck is committed to a monitoring and remediation process to provide relevant, reliable and timely information about the design, implementation and operation of the system of quality management. The monitoring activities provide a basis for the identification and remediation of deficiencies. The monitoring activities are conducted both at a firm-wide and engagement level. Each audit director is subject to the William Buck internal peer review process at least once every three years. The process is a rigorous one and is led by Group Risk, which: — Selects engagements — Selects reviewers — Maintains the review program which focuses on the requirements of the Code of Ethics for Professional Accountants (including Independence Standards), auditing standards and applicable legal and regulatory requirements — Moderates results — Assesses whether remedial action is required, such as changes to the audit plan in future periods, changes to policy or training — Report the results to member firms, WBL Board and the Audit Focus Group
Given open communication is a key foundation to the William Buck audit methodology, it takes place continuously, such that management and those charged with governance are kept up to date with progress and there are no surprises.
— Works with member firms through the Audit Focus Group to determine the root cause of quality issues identified and to take appropriate actions to continuously improve quality, and
Financial Reporting Webinar
— Communicates the thematic results of the peer reviews to audit staff across the Group.
We conduct an annual Financial Reporting Webinar. This webinar aims to keep our clients well-informed about the latest developments in financial reporting.
Continuous improvement We have a focus on continuous improvement of the audit methodology and processes to enhance audit quality. William Buck Transparency Report 2023 | 25
People, learning and culture Our ethos is to make a positive impact on the lives of our people, clients and communities. Our people
Learning and development
For our people, we aim to do this by fostering a strong, nurturing culture that provides unparalleled support and celebrates diversity and authenticity.
Our strong commitment to learning and development is another way we support our people while enhancing our sustainability and enabling succession. We also believe that continuous learning is key to a fulfilled professional and personal life.
Our culture This culture is underpinned by our CARE values of Collaborative, Aspiring, Relationship-driven and Enterprising. These values guide the way we interact with each other and clients, and our approach to all that we do. A testament to our culture, we were awarded the Voice Project Best Workplace Award in 2022 for outstanding performance in work practices and employee engagement. We engaged the Voice Project to facilitate our firmwide Employee Engagement Survey and the award resulted from well above industry results. By creating an inclusive and diverse workplace where our people can be at their best, William Buck delivers greater value for our clients and communities in which we operate. Our group engagement survey results help guide our initiatives by listening and responding to our people while our results indicate that our people feel a sense of psychological safety – an important marker that our people feel they can ask for help, discuss hard issues and that they are supported when things don’t go the right way. All of this means we have a robust and constructive environment in which better outcomes are reached, together.
26 | William Buck Transparency Report 2023
William Buck invests significantly in the continued professional development of directors and staff across the Group. We believe in providing our people with challenging and rewarding careers which results in outstanding quality service to clients. In addition to our group wide and local face to face learning programs, our directors and staff learning is complimented by access to GO1, a world leading digital learning library offering professional development, wellbeing and compliance courses. They can access a range of topics within the Learning Management System that links directly to the GO1 content. Topics include but are not limited to: time management, leadership, team building, general personal development and health and wellbeing. Learning pathways have been curated for graduate, intermediate, senior and manager roles. The learning pathways are mapped to the William Buck capability framework and designed specifically to develop our people and build capability for future roles.
“Grad College has provided me with an abundance of valuable skills and knowledge that I have been able to effectively implement and utilise in real-world scenarios.” Chrystal Alfred Grad College 2023 Participant William Buck Transparency Report 2023 | 27
People, learning and culture (cont’d) Professional, client service and leadership training to our directors and staff to support their growth and development as professionals. Our professional development program centres on both technical and non-technical skills and is aligned with the Group’s capability framework.
Keeping directors and staff up to date with developments in applicable legal and regulatory requirements, relevant ethical requirements as well as the accounting and auditing standards. On-the-job coaching to support the practical application of learning and to develop professional expertise.
Audit and accounting technical training In addition to the Group-wide induction training which addresses ethical, compliance and independence obligations, audit personnel embark on a career-long comprehensive training regime. The development opportunities are clearly defined in the role-specific Audit Learning Pathway which outlines the development opportunities to enhance skills at each level in an auditor’s career at William Buck. The curriculum under this program includes: — William Buck’s audit methodology under a staged approach over several years, dependent on experience — Professional ethics and independence — William Buck’s audit documentation platform — Accounting standards update — Professional, client service and leadership development.
28 | William Buck Transparency Report 2023
The William Buck audit learning journey consists of a Graduate Program focusing on soft skills and audit technical training, an Intermediates Blended Learning Program focusing on technical content delivered online and virtually as well as a virtual or in-person Senior Auditors Program building upon capability as careers progress. Audit personnel receive ad-hoc training based on specific needs or because of legal or regulatory change. William Buck requires that professional personnel meet the CPD requirements of their professional body. William Buck also provides and encourages its directors and staff to attend professional development and training through external providers. We believe that this ensures broader perspectives are obtained and enhances the quality of William Buck people.
Effectiveness of William Buck’s system of quality management The description of the system of quality management for the year ended 30 June 2023 included in this report explains how William Buck complies with relevant ethical, professional, regulatory and legal requirements. Based on the results of the internal monitoring programs and the outcomes from recent external monitoring activities, the WBL Board concludes that the system of quality management provides the firms with reasonable assurance that the objectives of the system of quality management are being achieved.
Given William Buck’s commitment to continuous quality improvement, the system of quality management allows us to identify areas that can be focused on for improvement.
Jamie McKeough Chair William Buck Group William Buck Transparency Report 2023 | 29
Part B
William Buck Audit (VIC) Pty Ltd William Buck Audit (WA) Pty Ltd
30 | William Buck Transparency Report 2023
William Buck Transparency Report 2023 | 31
Introduction The contents of Part B of the William Buck Transparency Report are in accordance with the firm-specific elements of Part 2 of Schedule 7A of the Corporations Amendment Regulation 2012 (No.5). At 30 June 2023, William Buck Audit (VIC) Pty Ltd and William Buck Audit (WA) Pty Ltd are the only William Buck member firms that need to lodge a Transparency Report under the criteria of s332A(1) of the Corporations Act 2001. Information on the audit-specific elements for other member firms will be provided when the s332A(1) criteria are met.
32 | William Buck Transparency Report 2023
William Buck Audit (VIC) Pty Ltd and William Buck Audit (WA) Pty Ltd are Authorised Audit Companies as defined under Division 1 of Part 9.2A of the Corporations Act 2001. Contents of Part B of the 2023 Transparency Report are to be read in conjunction with Part A. Together the full report addresses all elements of Part 2 of Schedule 7A of the Corporations Regulations 2001.
Director remuneration model The director remuneration model for William Buck Audit (VIC) Pty Ltd and William Buck Audit (WA) Pty Ltd rewards directors on the basis of quality performance, responsibility, experience and respective contributions of directors. The performance and contribution of each director is assessed on an ongoing and annual basis and they receive a level of remuneration in accordance with their performance and contribution.
— Development and care of professional and administrative staff
The key components of the criteria which directors are assessed upon are:
— Business development*
— Leadership — Technical competency — Ethical conduct
— Client service — Practice management
— Commitment to continuing professional education — Commitment to quality assurance — Building brand and firm value, and — Community commitment.
*W illiam Buck Audit (VIC) Pty Ltd and William Buck Audit (WA) Pty Ltd Directors are not incentivised or remunerated in any form for cross-selling of non-assurance services to audit clients.
William Buck Transparency Report 2023 | 33
Financial information for William Buck Audit (VIC) Pty Ltd 2023 Fees for Listed Entity Audits (exclusively audit services) Fees for non-audit services for Listed Entity Audits*
$3,150,077 $396,803
Total fees to Listed Companies
$3,546,880
Total fees for all audits
$8,643,349
*The fees for non-audit services are provided by related entities of William Buck Audit (VIC) Pty Ltd.
34 | William Buck Transparency Report 2023
Financial information for William Buck Audit (WA) Pty Ltd 2023 Fees for Listed Entity Audits (exclusively audit services) Fees for non-audit services for Listed Entity Audits* Total fees to Listed Companies Total fees for all audits
$408,493 $30,420 $438,913 $2,863,713
*The fees for non-audit services are provided by related entities of William Buck Audit (WA) Pty Ltd.
William Buck Transparency Report 2023 | 35
Audited bodies of William Buck Audit (VIC) Pty Ltd The following William Buck Audit (VIC) Pty Ltd audits meet the criteria of s332A(1) of the Corporations Act 2001: A-Cap Energy Ltd
Iltani Resources Limited
Prescient Therapeutics Limited
a2a GN Limited
IPB Petroleum Limited
QuickFee Limited
Alvo Minerals Limited
IRIS Metals Limited
Ronin Resources Limited
Auric Mining Limited
Island Pharmaceuticals Ltd
SECOS Group Limited
Cann Group Limited
Jayex Technology Limited
SenterpriSYS Limited
ChemX Materials Limited
Keybridge Capital Limited
Sequoia Financial Group Limited
Cohiba Minerals Limited
KneoMedia Limited
Southern Cross Gold Ltd
Connexion Telematics Ltd
Knosys Limited
Stellar Resources Limited
Copper Strike Limited
Lakes Blue Energy NL
Taiton Resources Limited
ColourTV Limited
Leeuwin Metals Ltd
The GO2 People Ltd
Damstra Holdings Limited
Lumos Diagnostics Holdings Ltd
The Sustainable Nutrition Group Ltd
De.mem Limited
Montem Resources Limited
Unico Silver Limited
ECS Botanics Holdings Ltd
MRG Metals Limited
Vertex Minerals Limited
Evergreen Lithium Limited
Nagambie Resources Ltd*
Victor Group Holdings Ltd
Exopharm Limited
Novatti Group Limited
VIP Gloves Ltd
Flynn Gold Limited
Noxopharm Limited
Wellnex Life Limited
FOS Capital Ltd
Nyrada Inc Opyl Limited
West Wits Mining Limited
Heavy Rare Earths Limited
Perpetual Resources Limited
Wingara AG Limited
HitIQ Ltd
Powerhouse Ventures Ltd
*No longer a client.
36 | William Buck Transparency Report 2023
William Buck Transparency Report 2023 | 36
Audited bodies of William Buck Audit (WA) Pty Ltd The following William Buck Audit (WA) Pty Ltd audits meet the criteria of s332A(1) of the Corporations Act 2001: Basin Energy Limited Beacon Minerals Limited Constellation Resources Limited Eagle Mountain Mining Limited GCX Metals Limited Great Northern Minerals Limited IXUP Limited M3 Mining Limited NGX Limited Odyssey Gold Ltd Peregrine Gold Ltd Province Resources Ltd Solstice Minerals Limited Triton Minerals Ltd Westar Resources Limited
William Buck Transparency Report 2023 | 37
External quality assurance reviews William Buck Audit (VIC) Pty Ltd and William Buck Audit (WA) Pty Ltd were subject to the following regulator and professional body reviews during the period:
Entities authorised to review
Reviews conducted during the year
ASIC
One engagement file completed in the current period for William Buck Audit (VIC) Pty Ltd.
CAANZ/ CPA
One review completed in the current period William Buck Audit (WA) Pty Ltd.
Office of the Auditor General for Western Australia (OAG)
No review conducted.
38 | William Buck Transparency Report 2023
Contact New South Wales
Queensland
South Australia
Sydney Level 29 66 Goulburn Street Sydney NSW 2000
Brisbane Level 22 307 Queen Street Brisbane QLD 4000
Adelaide Level 6 211 Victoria Square Adelaide SA 5000
Parramatta Level 7 3 Horwood Place Parramatta NSW 2150
Gold Coast Wyndham Corporate Court Centre Suite 8A Level 8/1 Corporate Court Bundall QLD 4217
GPO Box 11050 Adelaide SA 5001
PO Box 19 Parramatta NSW 2124 T (61 2) 8263 4000 F (61 2) 8263 4111 nsw.info@williambuck.com
Victoria Melbourne Level 20 181 William Street Melbourne VIC 3000 T (61 3) 9824 8555 F (61 3) 9824 8580 vic.info@williambuck.com
GPO Box 563 Brisbane QLD 4001 T (61 7) 3229 5100 F (61 7) 3221 6027 qld.info@williambuck.com
Western Australia Perth Level 3 15 Labouchere Road South Perth WA 6151 PO Box 748 South Perth WA 6951 T (61 8) 6436 2888 F (61 8) 6436 2889
T (61 8) 8409 4333 F (61 8) 8409 4499 sa.info@williambuck.com
New Zealand Auckland Level 4 21 Queen Street Auckland 1010 New Zealand Tauranga The Kollective 145 Seventeenth Ave 3112 New Zealand T (64 9) 366 5000 F (64 9) 366 5001 info@williambuck.co.nz
wa.info@williambuck.com
This report contains general information about the William Buck Group and its member firms as is required by the Corporations Act 2001 and Corporations Amendment Regulation 2012 (No.5) and as such should not be read as professional services or advice. Liability limited by a scheme approved under Professional Standards Legislation.
William Buck Transparency Report 2023 | 39
williambuck.com