Transparency Report

October 31, 2023

 Contents

Message from leadership 03

Our approach to quality 06

Cultures and values 09

Our people 18

Our approach 22

Monitoring 27

PwC Network 30

Legal and governance structure 32

Relevant audit clients and

34
Financial Information

Remuneration of partners and

36
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 2
 Message from leadership

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 3
 Message from leadership

Welcome to our 2023 Transparency Report

I am delighted to bring you the 2023 Transparency Report programme to deliver a next generation audit ecosystem -
for A. F. Ferguson & Co. Chartered Accountants (a human-led, tech-powered and data-driven. It will enable us
member firm of the PwC network). Throughout this report, to make continuous improvements to audit quality by
the terms “A. F. Ferguson & Co.”, “we”, “firm” and “our” further standardising, simplifying, centralising and
refer to A. F. Ferguson & Co. Chartered Accountants. automating our audit work, transforming the experience for
our stakeholders and our people.
We have prepared this Transparency Report, in respect
of the financial year ended 30 June 2023, in accordance PwC’s approach to building trust is designed to meet rising
with the requirements of The Statutory Auditors and Third expectations of transparency, accountability and
Country Auditors Regulations of the United Kingdom. stakeholder engagement. It combines expertise in audit,
tax and compliance activities with a drive to expand
While A. F. Ferguson & Co. is a multidisciplinary firm, this specialist capabilities in areas such as cyber security, data
report is primarily focused on our audit practice and privacy, ESG and AI. It also recognises the importance of
related services. The audit profession continues to be quality - and that reporting and compliance represent just
under significant public scrutiny and challenge. This one link in a chain that includes organisational culture,
Transparency Report is a statement to our stakeholders executive mindset, aligned standards, certified
of PwC’s commitment to quality and transparency. We professionals, stringent controls, tailored technologies and
understand the concerns and we support and are appropriate governance.
committed to changes that will improve audit quality. This
report also includes information about how the firm is Similar to building trust, delivering sustained outcomes
governed. requires us to work in an integrated way. Instead of taking
a traditional technology-driven approach to transformation,
At PwC, our purpose is to build trust in society and solve PwC focuses on the outcomes that our efforts are seeking
important problems. We’re a network of firms in 151 to achieve. To deliver the agreed outcomes, we then
countries with more than 364,000 people who are mobilise our expertise in areas including – among many
committed to delivering quality in assurance, advisory others – strategy, digital and cloud services, value
and tax services. We are committed to driving a strong creation, people and organisation, tax, sustainability
culture of quality and excellence that is core to our reporting, deals, business recovery services, legal and
purpose. compliance.

PwC’s global strategy, The New Equation, responds Our new strategy builds on our ongoing commitment to
to fundamental changes in the world, including quality.
technological disruption, climate change and
fractured geopolitics. The New Equation focuses on We are working towards a future that is human-led and
two interconnected needs that clients face: to build tech-powered. It is as important as ever that we attract
trust, which has never been more important, nor and retain our top talent and that we utilise the technology
more difficult, and to deliver sustained outcomes in available to us to work efficiently and effectively. I am
an environment where competition and the risk always conscious that we remain current and it is
of disruption are more intense than ever and imperative that we maintain quality and embrace new
societal expectations have never been greater. technology, whilst also looking to realise the benefits for all
of our stakeholders.
As part of The New Equation strategy, the PwC
network is making an incremental US $3bn investment
in quality. This includes a $1bn investment in a five- year

A. PwC
F. Ferguson & Co. Chartered
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report pro Forma 4
 We remain committed to delivering consistently high We remain committed to our role as assurance providers
quality audits that meet the needs of investors, stakeholders helping people make decisions with more confidence in a
and the organisations we audit. rapidly changing world.

In today’s rapidly changing business landscape, adaptability

is paramount. Through our investment in cutting-edge digital
systems and tools, we are well positioned to assist our
clients and our firm to be able to effectively and
timely navigate the intricate risk landscape. Our people are
aided by the significant investments we have made to
enhance our delivery model to elevate our audit quality and
respond to the needs of our stakeholders. Technology is
evolving at a swift pace, and we continue to assess,
understand, and incorporate technological advancements
into our services. We are excited for the opportunities that
harnessing technology will allow us to explore and are Salman Hussain
committed to leveraging the power of transformation to
augment the quality of our services. Territory Senior Partner and Assurance Leader

A. PwC
F. Ferguson & Co. Chartered
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 Our approach to quality

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
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report pro Forma 6
 Our approach to quality
A specific focus on audit quality across the
Network

The PwC Network’s Assurance QMSE framework

Delivering high-quality work is at the heart of what we do To help us achieve these objectives, the PwC network
at PwC; it is what our stakeholders rightly expect of us. invests significant resources in the continuous
enhancement of quality across our network. This includes
To deliver services in an effective and efficient manner
having a strong quality infrastructure supported by the
that meets the expectations of our clients and other
right people, underlying tools and technology at both the
stakeholders, the PwC network has established the
network level and within our firm, and a programme of
Quality Management for Service Excellence (QMSE)
continuous innovation and investment in our technology.
framework which integrates quality management into how
The PwC network’s Global Assurance Quality (GAQ)
each firm runs its business and manages risk.
organisation aims to support PwC firms in promoting,
This framework introduces an overall quality objective enabling, and continuously improving Assurance quality
that is supported by a series of underlying quality through effective policies, tools, guidance and systems
management objectives and each firm’s system of quality used to further promote and monitor quality and to build
management (SoQM) should be designed and operated an appropriate level of consistency in what we do.
so that the overall quality objective, which includes
These elements have been integrated and aligned by our
meeting the objectives of ISQM 1, is achieved with
network to create a comprehensive, holistic and
reasonable assurance.
interconnected quality management framework that each
The International Standard on Quality Management 1 firm tailors to reflect our individual circumstances. Each
(ISQM 1) firm is responsible for utilising the resources provided by
ISQM 1 became effective 15 December 2022 and the network as part of our efforts to deliver quality to meet
required all firms performing audits or review of financial the expectations of our stakeholders.
statements, or other assurance or related service
engagements to have designed and implemented a
The Quality Management Process
SoQM to meet the requirements of the standard.
The PwC Network’s Assurance QMSE framework was The achievement of these objectives is supported by a
designed to enable our firms to meet the requirements of quality management process (QMP) established by our
ISQM 1. This includes design and implementation of the firm and Assurance leadership, business process
SoQM to comply with ISQM 1 to meet the effective date owners, and partners and staff. This quality management
and evaluation of the SoQM under the standard by 15 process includes:
December 2023.

“
● identifying risks to achieving the quality
objectives
● designing and implementing responses to the
assessed quality risks
Overall quality objective ● monitoring the design and operating
effectiveness of the policies and procedures
To have the necessary capabilities in our
through the use of process-integrated monitoring
organisation and to deploy our people to
activities such as real-time assurance as well as
consistently use our methodologies, processes
appropriate Assurance quality indicators
and technology to deliver services in an effective
● continuously improving the system of quality
and efficient manner to fulfil the expectations of
management when areas for improvement are
our clients and other stakeholders
identified by performing root cause analyses and
implementing remedial actions and
● establishing a quality-related recognition and
Integrated and aligned in the right way accountability framework to be used in
appraisals, remuneration, and career progression
The quality objectives focus on having the necessary decisions
capabilities and to deploy our people consistently using
our intellectual and technological resources to deliver This involves the integrated use of Assurance
audits in an effective and efficient manner that fulfils the Quality Indicators to aim to predict quality
expectations of our clients and stakeholders. Put simply, issues, Real Time Assurance to aim to prevent
designing our business and processes to deliver quality issues, Root Cause Analysis to learn
consistently high-quality audits. from quality issues and a Recognition and
Accountability Framework to reinforce quality
behaviours, culture and actions

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F. Ferguson & Co. Chartered
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 The key factors that impacted our system of
quality management
Our system of quality management (SoQM) must be designed, implemented and operating on an ongoing basis to
achieve the quality objectives.This ongoing process includes monitoring, evaluating, assessing, reporting, and being
responsive to changes in quality risks, driven by the firm’s internal and external environment. This is our Quality
Management Process (QMP). Our focus on quality management is therefore not to apply prescribed rules but rather to
design and implement risk responses which are fit for purpose to manage the risks we identify in our own risk assessment
and achieve the quality objective taking into consideration the conditions, events, circumstances, actions and/or inactions
that may impact our SoQM.
The past several years have seen unprecedented challenges and our firm’s SoQM under the QMSE framework has
helped us navigate and react to the impact that identified factors had on our ability to achieve the overall assurance
quality objective - to deliver quality audit engagements.
Our SoQM involves a dynamic risk assessment process that takes and analyses the information about these conditions,
events, circumstances, actions or inactions which may result in:
• New or changing quality risks to achieving one or more of the quality objectives
• Changes to the risk assessment of existing quality risks
• Changes to the design of the firm’s SoQM, including the risk responses
2023 key factors impacting our SoQM

This year, we have seen various factors impact our SoQM but in particular, some of the more meaningful conditions,
events, circumstances actions and/or inactions that have necessitated changes to our SoQM include:

• Resourcing and attractiveness of the profession: New hires and turnover across a period are two important
metrics used to check the availability in the firm.
• Macroeconomic and geopolitical environment including war in Ukraine: New clients which are impacted by the
Russia-Ukraine situation are flagged at the acceptance stage and any required actions can be taken by the
Acceptance Committee​
• Heightened regulatory risks: A mandatory process for independent review of financial statements was introduced
to ensure completeness of disclosures.
• Training Integrity: Training integrity is communicated to the staff and partners and is monitored via complaint
reportings and declaration in ACC.
• IESBA Code: The Independence team shares the latest guidance and relevant resources in regular email
communications to the firm.
In addition, the firm adheres to the following ISQM 1 design and implementation process.
1. Project governance: A Steering Committee was formed which was headed by TAL and included R&Q Leaders.
2. Execution: Functional Area Leaders (Human Capital, Independence, Learning & Education and IT) are
extensively engaged to assess the current business processes and map them​.
3. SoQM implementation: Final risk assessments and responses prepared by Functional Area Leaders (FALs) are
reviewed by R&Q to ensure they adequately respond to risks.​
4. Ongoing Risk Assessment: FALs reassess Risk and Response Templates (RRTs) for new risks.​
5. Self Assessment of SoQM: QR Leader and team are responsible for the overall QMS evaluation Process, a
separate testing team is appointed.
6. Full ISQM 1 Implementation: Gap analysis, Review of Network Resources, and assessment of Service Providers
is conducted.

Statement on the effectiveness of our internal control system

The partners of A. F. Ferguson & Co. believe that the quality control environment described above complies with all
applicable regulations and provides a reasonable basis for believing that audits carried out by A. F. Ferguson & Co.
consistently meet the required quality standards.

A. PwC
F. Ferguson & Co. Chartered
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report pro Forma 8
 Cultures and values

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 9
 Our culture and values

Definition and culture Measurement and transparency

At PwC, we define quality service as consistently meeting For all our businesses, each PwC firm – as part of the
the expectations of our stakeholders and complying with agreement by which they are members of the PwC
all applicable standards and policies. An important part of network – is required to have in place a comprehensive
our ability to deliver against this quality definition is system of quality management (SoQM); to annually
building a culture across a network of 364,000 people. complete a SoQM performance assessment; and to
This culture of quality emphasises that quality is the communicate the results of these assessments to global
responsibility of everyone. Continuing to enhance this leadership. These results are then discussed in detail
culture of quality is a significant area of focus for our with the leadership of each local firm and if they are not
global and local leadership teams and one which plays a at the level expected, a remediation plan is agreed with
key part in the measurement of their performance. local leadership taking personal responsibility for its
successful implementation.
As the services that our network provides change and
develop, and the needs and expectations of our
stakeholders also change, the PwC network is continually
reviewing and updating the scale, scope and operations
of our PwC firms’ systems of quality management and
investing in programmes to enhance the quality of the
services that the PwC network provides.

Act with integrity Make a difference Care

Work together Reimagine the possible

A. PwC
F. Ferguson & Co. Chartered
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 Our firm’s commitment to quality
Leadership and tone at the top

Our purpose and values are the foundation of our success. Our purpose is to build trust in society and solve important
problems, and our values help us deliver on that purpose. Our purpose reflects ‘why’ we do what we do, and our strategy
provides us with the ‘what’ we do. ‘How’ we deliver our purpose and strategy is driven by our culture, values and
behaviours. This forms the foundation of our system of quality management and permeates how we operate, including
guiding our leadership actions, and how we build trust in what matters - how we do business, with each other and in our
communities.
Trust in what matters
Today companies are judged on far more than financial outcomes. A company’s performance in areas like ESG,
cybersecurity, and more can affect its reputation, staff retention, access to capital, and ultimately enterprise value.
That’s why we’re evolving our assurance offering to provide confidence not just in companies’ financial statements but in
their impact on people and the planet as well.
When working with our clients and our colleagues to build trust in society and solve important problems, we:
• Act with integrity
• Make a difference
• Care
• Work together
• Reimagine the possible
This culture is supported by appropriate tone at the top through regular communication from leadership to all partners and
staff about the firm’s commitment to quality. Key messages are communicated to our firm by our Senior Partner and our
leadership team and are reinforced by engagement partners. These communications focus on what we do well and
actions we can take to make enhancements. We track whether our people believe that our leaders’ messaging conveys
the importance of quality to the success of our firm. Based on this tracking, we are confident our people understand our
quality objectives. Delivering service of the highest quality is core to our purpose and our Assurance strategy, the focus of
which is to strengthen trust and transparency in our clients, in the capital markets and wider society.

Aim to Predict: Assurance Quality Indicators

We have identified a set of Assurance Quality Indicators (AQIs) that support our Assurance leadership team in
the early identification of potential risks to quality, using metrics to aim to predict quality issues. This quality risk
analysis is an essential part of our QMSE, and the AQIs, in addition to other performance measures, also
provide a key tool in the ongoing monitoring and continuous improvement of our SoQM.

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F. Ferguson & Co. Chartered
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 Ethics, independence and objectivity

Ethics
At PwC, we adhere to the fundamental principles of ethics set out in the International Ethics Standards Board for
Accountants (IESBA) Code of Ethics for Professional Accountants (the Code), which are:
i. Integrity – to be straightforward and honest in all professional and business relationships.
ii.Objectivity – to not allow bias, conflict of interest or undue influence of others to override professional or business
judgements.
iii.Professional Competence and Due Care – to maintain professional knowledge and skill at the level required to
ensure that a client or employer receives competent professional service based on current developments in practice,
legislation and techniques and act diligently and in accordance with applicable technical and professional standards.
iv.Confidentiality – to respect the confidentiality of information acquired as a result of professional and business
relationships and, therefore, not disclose any such information to third parties without proper and specific authority,
unless there is a legal or professional right or duty to disclose, nor use the information for the personal advantage of
the professional accountant or third parties.
v.Professional Behaviour – to comply with relevant laws and regulations and avoid any action that discredits the
profession.
Our network standards applicable to all network firms cover a variety of areas including ethics and business conduct,
independence, anti-money laundering, anti-trust/fair-competition, anti-corruption, information protection, firm’s and
partner’s taxes, sanctions laws, internal audit and insider trading. We take compliance with these ethical requirements
seriously and strive to embrace the spirit and not just the letter of those requirements. All partners and staff undertake
annual mandatory training, as well as submitting annual compliance confirmations, as part of the system to support
appropriate understanding of the ethical requirements under which we operate. Partners and staff uphold and comply with
the standards developed by the PwC network and leadership in A. F. Ferguson & Co. monitors compliance with these
obligations.
In addition to the PwC Values (Act with Integrity, Make a difference, Care, Work together, Reimagine the possible) and
PwC Purpose, A. F. Ferguson & Co. has adopted the PwC network standards which include a Code of Conduct, and
related policies that clearly describe the behaviours expected of our partners and other professionals-behaviours that will
enable us to build public trust. Because of the wide variety of situations that our professionals may face, our standards
provide guidance under a broad range of circumstances, but all with a common goal-to do the right thing.
Upon hiring or admittance, all staff and partners of A. F. Ferguson & Co. are provided with the PwC Global Code of
Conduct. They are expected to live by the values expressed in the Code in the course of their professional careers at our
firm and have a responsibility to report and express concerns, and to do so fairly, honestly, and professionally when
dealing with a difficult situation or when observing conduct inconsistent with the Code. In addition, every partner and staff
are required to complete new hire training, which covers the ethics and compliance network standards, including ethics
and the Code of Conduct.

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 PwC has implemented a network-wide confidential ethics helpline for the reporting of questions or concerns related to
behaviours that are inconsistent with the Code of Conduct and related policies. Every PwC firm has a separate and
secure tier of the ethics helpline for their confidential matters and investigations. The ethics helpline is also available for
third parties, including clients. The ethics helpline allows our partners, staff and third parties to feel safe raising a
question or concern without fear of retaliation.
The PwC Code of Conduct and the ethics helpline are available on-line for all internal and external stakeholders at
https://www.pwc.com/ethics.
A. F. Ferguson & Co. has adopted an accountability framework to facilitate remediation of behaviours that are
inconsistent with the Code of Conduct.
Finally, the Organisation for Economic Co-operation and Development (OECD) provides guidance, including the OECD
Guidelines for Multinational Enterprises (the OECD Guidelines), by way of non-binding principles and standards for
responsible business conduct when operating globally. The OECD Guidelines provide a valuable framework for setting
applicable compliance requirements and standards. Although the PwC network consists of firms that are separate legal
entities which do not form a multinational corporation or enterprise, PwC’s network standards and policies are informed
by and meet the goals and objectives of the OECD Guidelines.

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F. Ferguson & Co. Chartered
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 Objectivity and Independence

As auditors of financial statements and providers of other In addition, there is a Network Risk Management Policy
types of professional services, PwC firms and their governing the independence requirements related to the
partners and staff are expected to comply with the rotation of key audit partners.
fundamental principles of objectivity, integrity and
These policies and processes are designed to help PwC
professional behaviour. In relation to assurance clients,
firms comply with relevant professional and regulatory
independence underpins these requirements. Compliance
standards of independence that apply to the provision of
with these principles is fundamental to serving the capital
assurance services. Policies and supporting guidance are
markets and our clients.
reviewed and revised when changes arise such as
The PwC Global Independence Policy, which is based on updates to laws and regulations, including any changes
the Code, including International Independence Standards, to the Code or in response to operational matters.
contains minimum standards with which PwC firms have
A. F. Ferguson & Co. supplements the PwC Global
agreed to comply, including processes that are to be
Independence Policy as required by local regulations
followed to maintain independence from clients, when
including Listed Companies (Code of Corporate
necessary.
Governance) Regulations, 2019, the Public Sector
The independence requirements of the United States Companies (Corporate Governance) Rules, 2013, Listing
Securities and Exchange Commission (SEC) are, in certain Regulations of Pakistan Stock Exchange and the
instances, more restrictive than the Global Independence requirements of the Companies Act, 2017 of Pakistan,
Policy. Given the reach of these requirements and their where they are more restrictive than the network’s policy.
impact on PwC firms in the network, the Policy identifies
key areas where an SEC requirement is more restrictive.
Provisions that are specifically identified as applicable to Independence-related systems and tools
SEC restricted entities must be followed in addition to, or As a member of the PwC network, A. F. Ferguson &
instead of, the Policy in the associated paragraph. A. F. Co. has access to a number of systems and tools
Ferguson & Co. has a designated partner (known as the which support PwC firms and their personnel in
‘Partner Responsible for Independence’ or ‘PRI’) with executing and complying with their independence
appropriate seniority and standing, who is responsible for policies and procedures. These include:
implementation of the PwC Global Independence Policy • The Central Entity Service (CES), which contains
including managing the related independence processes information about corporate entities including all
and providing support to the business. The partner is PwC audit clients and their related entities (including
supported by a team of independence specialists. The PRI all public interest audit clients and SEC restricted
reports directly to the Territory Senior Partner of the firm. entities) as well as their related securities. CES
assists in determining the independence restriction
status of clients of the PwC firm and those of other
Independence policies and practices PwC firms before entering into a new non-audit
The PwC Global Independence Policy covers, among service or business relationship. This system also
others, the following areas: feeds Independence Checkpoint and the
• personal and firm independence, including policies Authorisation for Services system;
and guidance on the holding of financial interests and • ‘Independence Checkpoint’ which facilitates the pre-
other financial arrangements, e.g., bank accounts and clearance of publicly traded securities by all partners
loans by partners, staff, the firm and its pension and practice managers before acquisition and is
schemes; used to record their subsequent purchases and
• non-audit services and fee arrangements. The policy is disposals. Where a PwC firm wins a new audit client
supported by Statements of Permitted Services or there is a change in the restriction status of a
(SOPS), which provide practical guidance on the security, this system automatically informs those
application of the policy in respect of non-audit holding relevant securities of the requirement to sell
services to audit clients and related entities; the security where required;
• business relationships, including policies and guidance
on joint business relationships (such as joint ventures
and joint marketing) and on purchasing of goods and
services acquired in the normal course of business;
and
• acceptance of new audit and assurance clients, and
the subsequent acceptance of any non-assurance
services to be provided to those clients.

A. PwC
F. Ferguson & Co. Chartered
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report pro Forma 14
 Independence training and confirmations
Independence-related systems and tools,
continued A. F. Ferguson & Co. provides all partners and practice staff with
annual or on-going training in independence matters. Training
• Authorisation for Services (AFS) which is a typically focuses on milestone training relevant to a change in
global system that facilitates communication position or role, changes in policy or external regulation and, as
between a non-audit services engagement relevant, provision of services. Partners and staff receive
leader and the audit engagement leader, computer-based training on A. F. Ferguson & Co.’s independence
regarding a proposed non-audit service, policy and related topics. Additionally, in-person training is
documenting the analysis of any potential delivered to members of the practise on an as-needed basis by
independence threats created by the service A. F. Ferguson & Co.’s independence specialists and risk and
and proposed safeguards, where deemed quality teams.
necessary, and acts as a record of the audit All partners and practice staff are required to complete an annual
partner’s conclusion on the permissibility of compliance confirmation, whereby they confirm their compliance
the service; with relevant aspects of the PwC firm’s independence policy,
• Joint Business Relationships (JBR) which is a including their own personal independence. In addition, all
global system used to clear joint (close) partners confirm that all non-audit services and business
business relationships from an independence relationships for which they are responsible comply with policy
perspective. JBR is used to facilitate PwC and that the required processes have been followed in accepting
firms' compliance with JBR requirements for these engagements and relationships. These annual
new and existing joint business relationships. confirmations are supplemented by periodic and ad-hoc
It assists independence specialists in engagement level confirmations for all audit clients.
gathering information to assess, from an
independence perspective, the permissibility
of proposed joint business relationships and
in monitoring the continued permissibility of
previously approved existing joint business
relationships; and
• Global Breaches Reporting System which is
designed to be used to report any breaches of
external auditor independence regulations
(e.g., those set by regulation or professional
requirements) where the breach has cross-
border implications (e.g., where a breach
occurs in one territory which affects an audit
relationship in another territory). All breaches
reported are evaluated and addressed in line
with the Code. .

A. F. Ferguson & Co. also has a number of

Pakistan-specific systems which include:
• A rotation tracking system which monitors
compliance with A. F. Ferguson & Co.’s audit
rotation policies for the PwC firm,
engagement leaders, other key audit partners
and senior staff involved in an audit.

A. PwC
F. Ferguson & Co. Chartered
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report pro Forma 15
 Independence monitoring and disciplinary policy

A. F. Ferguson & Co. is responsible for monitoring the effectiveness of its system of quality management in managing
compliance with independence requirements. In addition to the confirmations described above, as part of this monitoring,
we perform:
• Compliance testing of independence controls and processes;
• Personal independence compliance testing of a random selection of, at a minimum, partners and practice managers as
a means of monitoring compliance with independence policies; and
• An annual assessment of our firm’s adherence with the PwC network’s standard relating to independence.
The results of A. F. Ferguson & Co. monitoring and testing are reported to the firm’s management on a regular basis with
a summary reported to them on an annual basis.
A. F. Ferguson & Co. has an Accountability Framework and supporting disciplinary policies and mechanisms in place that
promote compliance with independence policies and processes, and that require any breaches of independence
requirements to be reported and addressed.
This would include discussion with the client’s audit committee regarding the nature of a breach, an evaluation of the
impact of the breach on the independence of the PwC firm and the engagement team and the need for actions or
safeguards to maintain objectivity. Although most breaches are minor and attributable to an oversight, all breaches are
taken seriously and investigated as appropriate. The PwC firm also follows supplemental local requirements relating to
the reporting of breaches. The investigations of any identified breaches of independence policies also serve to identify the
need for improvements in A. F. Ferguson & Co.’s systems and processes and for additional guidance and training.

Considerations in undertaking the audit

Our principles for determining whether to accept a new client or continue serving an existing client are fundamental to
delivering quality, which we believe goes hand-in-hand with our purpose to build trust in society. We have established
policies and procedures for the acceptance of client relationships and audit engagements that consider whether we are
competent to perform the engagement and have the necessary capabilities including time and resources, can comply with
relevant ethical requirements, including independence, and have appropriately considered the integrity of the client. We
reassess these considerations in determining whether we should continue with the client engagement and have in place
policies and procedures related to withdrawing from an engagement or a client relationship when necessary. The policies
and processes we have in place emphasise risk and quality considerations such that financial and operational priorities
do not lead to inappropriate judgements about whether to accept or continue a client relationship.
Client and Engagement Acceptance and Continuance
A. F. Ferguson & Co. has a process in place to identify acceptable clients based on the PwC network’s proprietary
decision support systems for audit client acceptance and retention (called Acceptance). Acceptance facilitates a
determination by the engagement team, business management and risk management specialists of whether the risks
related to an existing client or a potential client are manageable, and whether or not PwC should be associated with the
particular client and its management. More specifically, this system enables:
Engagement teams:
• To document their consideration of matters required by professional standards related to acceptance and continuance;
• To identify and document issues or risk factors and their resolution, for example through consultation by adjusting the
resource plan or audit approach or putting in place other safeguards to mitigate identified risks or by declining to
perform the engagement; and
• To facilitate the evaluation of the risks associated with accepting or continuing with a client and engagement.
PwC firms (including PwC firm leadership and risk management):
• To facilitate the evaluation of the risks associated with accepting or continuing with clients and engagements;
• To provide an overview of the risks associated with accepting or continuing with clients and engagements across the
client portfolio; and
• To understand the methodology, basis and minimum considerations all other PwC firms in the network have applied in
assessing audit acceptance and continuance.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 16
 Reinforce: Recognition and Accountability Framework

Our Recognition and Accountability Framework (RAF) reinforces quality in everything our people do in delivering on
our strategy, with a focus on the provision of services to our clients, how we work with our people and driving a high
quality culture. It holds Partners accountable for quality behaviours and quality outcomes beyond compliance. Our
RAF considers and addresses the following key elements:
• Quality outcomes: We provide transparent quality outcomes to measure the achievement of the quality objectives.
Our quality outcomes take into account meeting professional standards and the PwC network and our firm’s
standards and policies
• Behaviours: We have set expectations of the right behaviours that support the right attitude to quality, the right tone
from the top and a strong engagement with the quality objective
• Interventions/recognition: We have put in place interventions and recognition that promotes and reinforces positive
behaviours and drives a culture of quality
• Consequences/reward: We have implemented financial and non-financial consequences and rewards that are
commensurate to outcome and behaviour and sufficient to incentivise the right behaviours to achieve the quality
objectives

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 17
 Our people

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 18
 Our people
People strategy

Our people strategy was developed in support of our broader business strategy, The New Equation. We are focused on
being the world’s leading developer of talent and enabling our people with greater agility and confidence in a rapidly
changing world. Specific focus areas include creating a resilient foundation for times of change through supporting the
well-being of our people and enabling effective delivery; developing inclusive leaders for a shifting world; and enabling our
workforce for today’s realities and tomorrow’s possibilities.

We hire candidates who have diverse backgrounds and appropriate skills; have a questioning mindset and intellectual
curiosity; and demonstrate courage and integrity. Our hiring standards include a structured interview process with
behaviour-based questions built from The PwC Professional framework, assessment of academic records, and
background checks.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 19
 Inclusion and diversity
At PwC, we’re committed to being a leading organisation for inclusion and belonging with our people, clients, and
external stakeholders and a leading employee destination for diverse talent. We are focused on ensuring our ways of
working embrace diversity and fostering an inclusive environment in which our people are comfortable bringing their
whole selves to work and feel that they belong and can reach their full potential. As demonstrated through our core
values of Care and Work Together, we strive to more deeply understand and empathise with different backgrounds,
perspectives and experiences. We know that when people from different backgrounds and with different points of
view work together, we create the most value for our clients, our people, and society.

Recruitment
A. F. Ferguson & Co. aims to recruit, train, develop and retain the best and the brightest staff who share in the firm’s
strong sense of responsibility for delivering high-quality services. Our hiring standards include a structured interview
process with behaviour-based questions built from The PwC Professional framework, assessment of academic
records, and background checks.

Team selection, experience and supervision

Our audit engagements are staffed based on expertise, capabilities and years of experience. Engagement leaders
determine the extent of direction, supervision and review of junior staff.

Feedback and continuous development

Our team members obtain feedback on their overall performance, including factors related to audit quality, such as
technical knowledge, auditing skills and professional scepticism. Audit quality is an important factor in performance
evaluation and career progression decisions for both our partners and staff. Feedback on performance and
progression is collected via our Snapshot tool, a simple, mobile-enabled technology. Ongoing feedback
conversations help our people grow and learn faster, adapt to new and complex environments, and bring the best to
our clients and firm

Career progression
A. F. Ferguson & Co. uses The PwC Professional, our global career progression framework, which sets out clear
expectations at all staff levels across five key dimensions. The framework underpins all elements of career
development and helps our people develop into well-rounded professionals and leaders with the capabilities and
confidence to produce high-quality work, deliver an efficient and effective experience for our clients, execute our
strategy, and support our brand. Our annual performance cycle is supported by continuous feedback conversations
and regular check-ins with the individual’s Team Leader to discuss their development, progression and performance.

Retention
Turnover in the public accounting profession is often high because as accounting standards and regulations change,
accountants are in demand and the development experience we provide makes our staff highly sought after in the
external market. Our voluntary turnover rate fluctuates based on many factors, including the overall market demand
for talent.

Global People Survey

Each PwC firm participates in an annual Global People Survey, administered across the network to all of our partners
and staff. A. F. Ferguson & Co. is responsible for analysing and communicating results locally, along with clearly
defined actions to address feedback.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 20
 The PwC Professional

The PwC Professional supports the development and career

progression of our staff by providing a single set of
expectations across all lines of service, geographies, and
roles; outlining the capabilities needed to thrive as purpose-
led and values-driven leaders at every level.

Professional Development

We are committed to putting the right people in the right

place at the right time. Throughout our people’s careers,
they are presented with career development opportunities,
classroom, virtual classroom and on-demand learning, and
on-the-job real time coaching/development. Our flexible
training portfolio facilitates personalised learning with access
to a variety of educational materials , including webcasts,
podcasts, articles, videos, and courses.
Achieving a professional credential supports our firm’s
commitment to quality through consistent examination and
certification standards. Our goal is to provide our staff with a
more individualised path to promotion and support them in
prioritising and managing their time more effectively when
preparing for professional exams. Providing our people with Our training investment in people
the ability to meet their professional and personal
commitments is a critical component of our people
experience and retention strategy. Assurance Training FY23
Average hours achieved by partners and staff

Continuing education 71
We, and other PwC firms, are committed to delivering FY23 Total hours completed
quality assurance services around the world. To maximise
consistency in the network, the formal curriculum,
developed at the Network level, provides access to training
103,165
materials covering the PwC audit approach and tools-this
includes updates on auditing standards and their Assurance Training FY22
implications, as well as areas of audit risk and areas of Average hours achieved by partners and staff
focus for quality improvement.
This formal learning is delivered using a blend of delivery 55
approaches, which include remote access, classroom
learning, virtual classroom, and on-the-job support. The
curriculum supports our primary training objective of audit FY22 Total hours completed
quality, while providing practitioners with the opportunity to
strengthen their technical and professional skills, including 65,590
professional judgement while applying a sceptical mindset
The design of the curriculum allows us to select, based on
local needs, when we will deliver the training. Our Learning
& Education leader then considers what additional training
Mandatory
training
78%
is appropriate – formal and/or informal – to address any Of partners and staff have
attendance
additional specific local needs. completed all mandatory
training attendance in FY23

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 21
 Our approach

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 22
 Our approach

Our tools
Our approach
As a member of the PwC network, A. F. Ferguson & Co.
The quality and effectiveness of audit is critical to all of has access to and uses PwC Audit, a common audit
our stakeholders. We therefore invest heavily in the methodology and process. This methodology is based on
effectiveness of our audits, in the skills of our people, the International Standards on Auditing (ISAs), with
in our underlying methodology, the technology we use, additional PwC policy and guidance provided where
and in making the right amount of time and resources appropriate. PwC Audit policies and procedures are
available. We pay close attention to the internal designed to facilitate audits conducted in compliance with
indicators and processes that routinely monitor the all ISA requirements that are relevant to each individual
effectiveness of our risk and quality processes, and audit engagement. Our common audit methodology
provide timely information about the quality of our audit provides the framework to enable PwC firms to
work and any areas for improvement. consistently comply in all respects with applicable
professional standards, regulations and legal
requirements.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 23
 Tools and technologies to support our audit

Our technology Our next generation audit

Aura, our global audit documentation platform, is used As part of our commitment to building trust and delivering
across the PwC network. Aura helps drive how we build sustained outcomes, the PwC network is investing in a
and execute our audit plans by supporting teams in multi-year effort to deliver a new global audit platform to
applying our methodology effectively, by creating power our next generation audit, ultimately replacing our
transparent linkage between risks, required procedures, legacy technologies such as Aura and Connect. By
controls and the work performed to address those risks, as exploring and investing in new technologies and
well as providing comprehensive guidance and project redefining underlying audit processes, PwC will further
management capabilities. Targeted audit plans specify risk standardise, simplify, centralise, and automate our audit
levels, controls reliance and substantive testing. Real time work. PwC’s investment will accelerate ongoing
dashboards show teams audit progress and the impact of innovation and enable us to respond to changing
scoping decisions more quickly. stakeholders’ needs while taking advantage of emerging
technologies, providing a transformed audit experience
Connect is our collaborative platform that allows clients to
focusing on continuous quality enhancement. PwC’s
quickly and securely share audit documents and
vision for NGA is to provide efficient, robust and
deliverables. Connect also eases the burden of tracking
independent assurance and audit insights across
the status of deliverables and resolving issues by
financial and non-financial information, helping to build
automatically flagging and tracking outstanding items and
trust in what matters to our stakeholders. As PwC gains
issues identified through the audit for more immediate
momentum around the next generation audit programme,
attention and resolution. Clients are also able to see audit
we will continue to release new capabilities on an
adjustments, control deficiencies, and statutory audit
ongoing basis to enhance quality and the overall audit
progress for all locations- in real time.
experience.
Connect Audit Manager streamlines, standardises and
automates group and component teams coordination for
Reliability and auditability of audit
multi-location and statutory/regulatory audits. It provides a
single digital platform to see all outbound and inbound technologies
work and digitises the entire coordination process which
facilitates greater transparency, compliance and quality for Our firm has designed and implemented processes and
complex multi-location audits. controls to underpin the reliability of these audit
technologies. This includes clarification of the roles and
Halo, our data auditing tools, address large volumes of
responsibilities of audit technology owners and users. In
data, analysing whole populations to improve risk
addition, we have guidance focused on the sufficiency of
assessment, analysis and testing. For example, Halo for
audit documentation included in the workpapers related
Journals enables the identification of relevant journals
to the use of these audit technologies, including
based on defined criteria making it easier for engagement
consideration of the reliability of the solution, and the
teams to explore and visualise the data to identify client
documentation needed to assist the reviewer in meeting
journal entries to analyse and start the testing process.
their supervision and review responsibilities as part of the
Count, which facilitates the end-to-end process for normal course of the audit.
observing inventory counts, allows our engagement teams
to create and manage count procedures, counters to
record results directly onto their mobile device or tablet
and engagement teams to export final results into Aura.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 24
 Confidentiality and information security

The firm takes the protection of confidential and personal

data very seriously. Our focus on our clients requires a
holistic and collaborative approach to reducing security,
privacy and confidentiality risks with significant
investment in appropriate controls and monitoring.

Data Privacy

The firm maintains a robust and consistent approach to

the management of all personal data, with everyone in
our organisation having a role to play in safeguarding
personal data. We have continued to comply with
network data protection programme, and are committed
to embedding good data management practices across
our business.

Information Security

Information Security is a high priority for the PwC

Network. PwC firms are accountable to their people,
clients, suppliers, and other stakeholders to protect
information that is entrusted to them.
Failure to protect information could potentially harm the
individuals whose information PwC firms hold, lead PwC
firms to suffer regulatory sanctions or other financial
losses, and impact the PwC reputation and brand. The
Information Security Policy (ISP) outlines the minimum
security requirements with which every PwC firm must
comply.
PwC firm compliance with the ISP is measured through
quarterly data-driven assessments as a well as a yearly
evidence based assessment for each PwC firm.
Deviations that result from the assessment are prioritised
for remediation per timelines agreed with firm leadership.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 25
 Supporting engagement performance

Evolving delivery model Direction, coaching and Consultation culture

We continue to evolve the way we supervision Consultation is key to maintaining
deliver our services so our people Engagement leaders and senior high audit quality. We have formal
give our clients an even better engagement team members are protocols about mandatory
experience, further enhance the responsible and accountable for consultation, in the pursuit of quality.
quality of what we do and create providing quality coaching For example, our engagement teams
economic capacity to invest in the throughout the audit and supervising consult with appropriate groups in
future. the work completed by junior areas such as assurance, risk,
members of the team, coach the valuation, IFRS and other
team and maintain audit quality. specialities as well as individuals
Engagement teams utilise Aura within our Methodology group.
which has capabilities to effectively
monitor the progress of the
engagement to determine that all
work has been completed and
reviewed by appropriate individuals,
including the engagement leader.

Methodology Group Quality Review Partners (QRP) Differences of opinion

Our Methodology Group comprises Specific audit engagements are Protocols exist to resolve the
technical auditing and financial assigned a QRP as part of the situations where a difference of
reporting groups as well as risk and member firm’s system of quality opinion arises between the
quality. These specialists play a vital management as required by engagement leader and either the
role in keeping our policies and professional standards. These QRP, another Assurance partner.
guidance in these areas current by partners, who have the necessary
tracking new developments in experience and technical knowledge,
accounting and auditing and are involved in the most critical
providing those updates to aspects of the audit. For example,
professional staff. they may advise on matters of firm
independence, significant risks and a
team’s responses to those risks, and
specific accounting, auditing, and
financial reporting and disclosure
issues.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 26
 Monitoring

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 27
 Monitoring
Monitoring of Assurance quality

We recognise that quality in the Assurance services we In addition to the ongoing monitoring noted above, our
deliver to clients is key to maintaining the confidence of monitoring also encompasses periodic assessment of our
investors and other stakeholders in the integrity of our SoQM which includes the review of completed
work. It is a key element to our Assurance strategy. engagements (Engagement Quality Reviews - EQR), as
well as periodic monitoring of our SoQM by an objective
Responsibility for appropriate quality management lies
team within our firm. The results of these procedures,
with the leadership of A. F. Ferguson & Co. This includes
together with our ongoing monitoring, form the basis for
the design and operation of an effective System of
the continuous improvement of our SoQM. EQRs are
Quality Management (SoQM) that is responsive to our
performed under a network-wide inspection programme
specific risks to delivering quality audit engagements,
based on professional standards and PwC audit
using the network’s QMSE framework.
methodology.

EQRs are risk-focused reviews of completed

The overall quality objective under the QMSE
engagements covering, on a periodic basis, individuals in
framework is to have the necessary capabilities in our
our firm who are authorised to sign audit, non-audit
firm and to deploy our people to consistently use our
assurance or related services reports. The review
methodologies, processes and technology in the
assesses whether an engagement was performed in
delivery of Assurance services in an effective and
compliance with PwC Audit guidance, applicable
efficient manner to fulfil the valid expectations of our
professional standards and other applicable engagement-
clients and other stakeholders.
related policies and procedures. Each signer is reviewed
at least once every five years, unless a more frequent
review is required based on the profile of that signer’s
Our firm’s monitoring includes an ongoing assessment client engagements.
aimed at evaluating whether the policies and procedures
which constitute our SoQM are designed appropriately Reviews are led by experienced Assurance partners,
and operating effectively to provide reasonable assurance supported by objective teams of partners, directors,
that our audit, non-audit assurance and related services senior managers and other specialists. EQR reviewers
engagements are performed in compliance with laws, may be sourced from other PwC firms if needed to
regulations and professional standards (also referred to provide appropriate expertise or objectivity. Review
as our ongoing monitoring). This includes the use of Real teams receive training to support them in fulfilling their
Time Assurance. responsibilities, and utilise a range of checklists and tools
developed at the network level when conducting their
inspection procedures. The network inspection team
Aim to Prevent: Real Time supports review teams by monitoring the consistent
Assurance application of guidance on classification of engagement
findings and engagement assessments across the
We have developed a Real Time Quality Assurance network.
(RTA) programme designed to provide preventative
monitoring that helps coach and support The last EQR in Pakistan was held in August 2023
engagement teams get the ‘right work’ completed in and covered 10 audit and 3 non audit
real-time, during the audit. assurance engagements, of which 12 engagements
The RTA program which is a coaching program to (representing 92% of the reviewed engagements) had a
the teams was run in FY23 for 15 Pakistan rating of “Compliant” and 1 engagement (representing
engagements. There is good breadth of coverage 8% of the reviewed engagements) had a rating of "Non-
across all engagements leaders targeting the higher compliant“.
risk engagements based on client risk profile. The
reviews are performed by experienced managers, Additionally, the PwC Network undertakes periodic
senior managers and directors with relevant industry reviews to evaluate certain elements of PwC firms’
expertise. Issues identified through this programme systems of quality management. The Network also looks
are communicated to the practice through at the PwC firm leadership’s own assessment of the
mandatory training programme, briefings and effectiveness of their system of quality management and
additional guidance. The internal monitoring process their determination of whether the overall quality objective
of the program leveraged on current technologies has been achieved.
allowing for standardisation and automation.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 28
 The inspection results are reported to our firm’s
leadership who are responsible for analysing the results
of the inspections along with the findings identified from Learn: Root cause Analysis
all sources of information and implementing remedial
actions as necessary. In situations where adverse quality
matters on engagements are identified, based on the
nature and circumstances of the issues, the responsible We perform analyses to identify potential factors
partner or our firm’s Assurance leadership personnel may contributing to our firm’s audit quality so that we can
be subject to additional mentoring, training or further take actions to continuously improve. Our primary
sanctions in accordance with our firm’s Recognition and objectives when conducting such analyses are to
Accountability Framework. understand what our findings tell us about our SoQM
Assurance partners of our firm receive information on the and to identify how our firm can provide the best
results of the network inspection program, designed for possible environment for our engagement teams to
their use in assessing the scope of audit work they deliver a quality audit. We look at quality findings
determine needs to be performed and their reliance on from all sources including our own ongoing
work performed by PwC firms in connection with their monitoring of our SoQM as well as Network
audit of a client’s consolidated financial statements. inspection of our SoQM. We look at quality findings
from all sources including our own ongoing
monitoring of our SoQM as well as Network
inspection of our SoQM, audits both with and without
External Inspections deficiencies—whether identified through our own
internal inspections process or through external
inspections and other inputs such as our Global
A. F. Ferguson & Co., is eligible to undertake statutory People Survey and financial statement restatements
audit as prescribed under the relevant regulations by and accounting errors—to help identify possible
virtue of its registration with the Institute of Chartered distinctions and learning opportunities.
Accountants of Pakistan (ICAP). ICAP undertakes an For individual audits, an objective team of reviewers
inspection of the quality of A. F. Ferguson & Co.'s work in identifies potential factors contributing to the overall
all offices as statutory auditors after every two years. In quality of the audit. We consider factors relevant to
October 2019, ICAP issued a satisfactory rating for the technical knowledge, supervision and review,
Firm’s system of Quality Control and Engagement professional scepticism, engagement resources, and
Reviews. 20 audit engagements were selected by ICAP. training, amongst others. Potential causal factors are
The firm is registered with the Financial Reporting identified by evaluating engagement information,
Council, UK (FRC) as a Third Country Auditor (TCA). performing interviews, and reviewing selected audit
During the year ended 30 June 2021, the firm was subject working papers to understand the factors that may
to audit quality review of FRC in respect of annual audit of have contributed to audit quality.
financial statements of the relevant audit client. The final In addition, the data compiled for audits both with
report of FRC was received in September 2021 and no and without engagement-level findings is compared
significant finding was identified. and contrasted to identify whether certain factors
appear to correlate to audit quality. Examples of this
data include the hours incurred on the audit, the
number of years that key engagement team
members have been on the engagement, the
number of other audits that engagement partners
are involved in, whether the engagement was
subject to a pre-issuance review, and the timing of
when the audit work was performed.
Our goal is to understand how quality audits may
differ from those with engagement-level findings,
and to use these learnings to continuously improve
all of our audits. We evaluate the results of these
analyses to identify enhancements that may be
useful to implement across the practice. We believe
these analyses contribute significantly to the
continuing effectiveness of our quality management.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 29
 PwC network

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 30
 PwC network
Global network

Firms in the PwC network are members in, or have other The Territory Senior Partner of A. F. Ferguson & Co.
connections to PwCIL, an English private company maintains our relationships with the Network Leadership
limited by guarantee. PwCIL does not practise Team.
accountancy or provide services to clients. Rather its
European Union (EU) / European Economic Area
purpose is to act as a coordinating entity for PwC firms in
(EEA) Member firms
the PwC network. Focusing on key areas such as
strategy, brand, and risk and quality, PwCIL coordinates A list of audit firms and statutory auditors within the PwC
the development and implementation of policies and network from EU and EEA Member States can be found
initiatives to achieve a common and coordinated in Annexure – I to this report.
approach amongst individual PwC firms where
Total turnover achieved by statutory auditors and audit
appropriate. PwC firms of PwCIL can use the PwC name
firms from EEA Member States that are members of the
and draw on the resources and methodologies of the
PwC network resulting, to the best extent calculable, from
PwC network. In addition, PwC firms may draw upon the
the statutory audit of annual and consolidated financial
resources of other PwC firms and/or secure the provision
statements is approximately 2.8 billion Euros. This
of professional services by other PwC firms and/or other
represents the turnover from each entity's most recent
entities. In return, PwC firms are bound to abide by
financial year converted to Euros at the exchange rate
certain common policies and to maintain the standards of
prevailing as of 30 June 2023.
the PwC network as put forward by PwCIL.
The PwC network is not one international partnership. A
PwC firm cannot act as agent of PwCIL or any other PwC
firm, cannot obligate PwCIL or any other PwC firm, and is
liable only for its own acts or omissions and not those of
PwCIL or any other PwC firm. Similarly, PwCIL cannot
act as an agent of any PwC firm, cannot obligate any
PwC firm, and is liable only for its own acts or omissions.
PwCIL has no right or ability to control any PwC firm’s
exercise of professional judgement.

The governance bodies of PwCIL

are:

• Global Board, which is responsible for the governance

of PwCIL, the oversight of the Network Leadership
Team and the approval of network standards. The
Board does not have an external role. The Board is
comprised of 19 members. One is appointed as
external, independent directors, and the other 18 Board
members are elected by partners from PwC firms
around the world every four years.
• Network Leadership Team, which is responsible for
setting the overall strategy for the PwC network and the
standards to which the PwC firms agree to adhere.
• Strategy Council, which is made up of the leaders of
the largest PwC firms and regions of the network,
agrees on the strategic direction of the network and
facilitates alignment for the execution of strategy.
• Global Leadership Team, which is appointed by and
reports to the Network Leadership Team and the
Chairman of the PwC network. Its members are
responsible for leading teams drawn from PwC firms to
coordinate activities across all areas of our business.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 31
 Legal and governance structure

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 32
 Legal and governance structure

Legal structure and ownership of Governance structure of the A. F.

the A. F. Ferguson & Co. Ferguson & Co.

A.F. Ferguson & Co., is a partnership formed under the Every three years, the Council of Partners (all active
laws of Pakistan. It is a member firm of Partners) elects a Territory Senior Partner. The Territory
PricewaterhouseCoopers International Limited, each Senior Partner forms a National Board. Other committees
member firm of which is a separate legal entity. It has are formed for the proper functioning of the Firm. As of
offices in Karachi, Lahore and Islamabad. It is wholly June 30, 2023, the National Board comprised of 8
owned by the partners of the firm. It had 51 partners at members and was chaired by Territory Senior Partner. The
June 30, 2023. Council of Partners acts as the Oversight Board of the
Firm.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 33
 Relevant audit clients and
Financial Information

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 34
 Relevant audit clients and Financial Information

Relevant audit clients

During the period covered by this Transparency Report, Assurance revenues earned from all other clients
A. F. Ferguson & Co. has signed an audit report for Oil represented Pak Rupees 3,222.37 million for the year
and Gas Development Company Limited (OGDCL) that ended June 30, 2023.
has transferrable securities listed on a regulated market
Non-assurance services revenues earned from
in United Kingdom.
OGDCL represented Pak Rupees 13.44 million for the
year ended June 30, 2023.
Non-assurance services revenues earned from all
Financial information other clients represented Pak Rupees 4,240.65 million for
the year ended June 30, 2023.

The firm’s revenue from the relevant audit client as

mentioned above and all other clients for the year ended
June 30, 2023 are as follows:
Assurance revenues earned from OGDCL
represented Pak Rupees 11.67 million for the year ended
June 30, 2023.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 35
 Remuneration of partners and
rotation policy

Message Our Cultures Our people Our Monitoring PwC Legal and Relevant
from approach and values approach Network governance audit clients
leadership to quality structure and Financial
Information

Remuneration
of partners and
rotation policy

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 36
 Remuneration of partners and rotation policy

Remuneration of Partners Rotation Policy

A. F. Ferguson & Co. follows the policy concerning the

Partners are remunerated solely out of the profits of A. F.
rotation of key audit partners and staff as prescribed in
Ferguson & Co. Audit partners are not permitted to be
the Companies Act, 2017, Listing Regulations of Pakistan
incentivized, evaluated or remunerated for the selling of
Stock Exchange and the requirements of PwC network,
non-audit services to their audit clients.
which requires the companies in the financial sector to
The final allocation and distribution of profit to individual change their external auditors every five years and all
Partner is made, in accordance with the Partnership listed companies to rotate the engagement partner after
Deed applicable, once the annual financial statements every five years. For non-listed High Profile clients (HPC)
have been finalized. The Council of Partners approve the / Public Interest Entities (PIE), the maximum period of
process and oversees its application. involvement for the engagement partner is 7 years. For all
other entities other than listed, PIE and HPC, maximum
Each Partner's remuneration comprises of various
period of engagement partner involvement is 10 years.
elements agreed upon by the Partnership for that year.
There is no rotation requirement for Very Small Entity
(VSE) clients.

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 37
 Annexure I - EU EEA Member firms
The table below is a list of audit firms and statutory auditors within the network i.e. from EU or EEA Member
States as of 30 June 2023.

Member State Audit firm/statutory auditor

Austria PwC Wirtschaftsprüfung GmbH, Wien

Austria PwC Oberösterreich Wirtschaftsprüfung und Steuerberatung GmbH, Linz

Austria PwC Steiermark Wirtschaftsprüfung und Steuerberatung GmbH, Graz

Austria PwC Österreich GmbH, Wien

Belgium PwC Bedrijfsrevisoren bv/Reviseurs d'enterprises srl

Bulgaria PricewaterhouseCoopers Audit OOD

Croatia PricewaterhouseCoopers d.o.o

Croatia PricewaterhouseCoopers Savjetovanje d.o.o

Cyprus PricewaterhouseCoopers Limited

Czech Republic PricewaterhouseCoopers Audit s.r.o

Denmark PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab

Estonia AS PricewaterhouseCoopers

Finland PricewaterhouseCoopers Oy

France PricewaterhouseCoopers Audit

France PricewaterhouseCoopers Entreprises

France PricewaterhouseCoopers France

France M. Antoine Priollaud

Germany PricewaterhouseCoopers GmbH Wirtschaftsprufungsgesellschaft

Germany Wibera WPG AG

Greece PricewaterhouseCoopers Auditing Company SA

Hungary PricewaterhouseCoopers Könyvvizsgáló Kft.

Iceland PricewaterhouseCoopers ehf

Ireland PricewaterhouseCoopers

Italy PricewaterhouseCoopers Spa

Latvia PricewaterhouseCoopers SIA

Liechtenstein PricewaterhouseCoopers GmbH, Ruggel

Lithuania PricewaterhouseCoopers UAB

Luxembourg PricewaterhouseCoopers, Société cooperative

Malta PricewaterhouseCoopers

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 38
 Annexure I - EU EEA Member firms
Member State Audit firm/statutory auditor
Netherlands PricewaterhouseCoopers Accountants N.V.

Norway PricewaterhouseCoopers AS

Poland PricewaterhouseCoopers Polska sp. z. o.o.

PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt
Poland
sp. k.
Poland PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością sp. k.
PricewaterhouseCoopers & Associados-Sociedade de Revisores Oficiais do
Portugal
Contas Lda
Romania PricewaterhouseCoopers Audit S.R.L.

Slovakia (Slovak Republic) PricewaterhouseCoopers Slovensko, s.r.o.

Slovenia PricewaterhouseCoopers d.o.o.

Spain PricewaterhouseCoopers Auditores, S.L.

Sweden PricewaterhouseCoopers AB

Sweden Öhrlings PricewaterhouseCoopers AB

A. PwC
F. Ferguson & Co. Chartered
| The Transparency Accountants | Transparency Report 2023
report pro Forma 39
pwc.com

pwc.com

© 2023 PwC. All rights reserved. A. F. Ferguson & Co. is a member firm of PwC network. Each member firm is a
separate legal entity. Please see www.pwc.com/structure for further details.