Audit Transparency Report 2026

This report includes our audit quality scorecard results, commentary from our independent Audit Advisory Board, how we continue to deliver audit quality in how we work, insights into the modern audit and our work to support client conversations around audit quality.

Attached to this report is an appendix which covers how we are delivering on our commitment to audit quality. It sets out our policies, systems, processes and independence, as well as how we monitor our work and ensure our people have the support they need to thrive in the audit profession.

Technology is an increasingly important part of this. Our investment in our next‑generation assurance platform, Maestro, is AI-native and brings together risk assessment, data-driven analysis and secure communication in an environment built around PwC’s global audit methodology and professional standards. This tool will help teams analyse information more deeply, identify anomalies and sharpen risk assessment, supporting our audits to be better, faster and smarter.

But technology does not replace judgement or accountability. Its value lies in improving the quality, consistency and focus of the audit and creating more capacity for the work where auditors add the greatest value, such as understanding a business, assessing risk, challenging assumptions, considering contradictory evidence and discussing complex matters with management and audit committees. Professional scepticism, experience and judgement remain fundamental.

Quality depends on culture. We want our people to feel confident to challenge, consult, speak up and understand the importance of the information entrusted to them. Clear expectations around independence, confidentiality, professional judgement and the appropriate use of information are part of the way we work, alongside secure technology and the wider systems that support audit quality.

At the same time, we continue to learn. Insights from our audits, quality reviews and root cause analysis feed back into our methodology, training, tools and ways of working. The objective is not simply more process, but an operating environment where quality is embedded in everyday decisions and supported by clear accountability, appropriate expertise and consistent ways of working.

As part of this, we are supporting stronger conversations about audit quality beyond our own firm. We have refreshed a practical resource to help boards and audit committees ask the right questions, assess auditor performance and make informed decisions about audit quality.

The profession will continue to evolve as technology advances, standards change and stakeholder expectations grow. Our focus is on continuing to adapt while maintaining the fundamentals of audit quality. We are confident in our quality systems and processes, but not complacent.

Thank you to our people for their ongoing commitment to quality, and to our clients, stakeholders and our Audit Advisory Board for the perspectives and challenge that help us continue to improve.

Our audit quality balanced scorecard for the year ended 30 June 2026 provides a number of insights into audit quality at PwC New Zealand.

This year, PwC network internal inspections of PwC New Zealand audit files identified no non-compliant audit files (2025: none) and two audit files that were compliant with improvements required (2025: two). This is consistent with our objective of having zero non-compliant and minimal compliant with improvements required audit files.

Our positive PwC network internal inspection results also extended to PwC New Zealand’s non-audit assurance and non-audit, non-assurance engagement files.

Our experts and specialist teams continue to play a pivotal role in supporting audit quality. Audit teams can draw on their deep expertise when navigating significant or complex technical issues or higher‑risk areas. This collaborative approach helps ensure our audits remain robust and responsive in a challenging macroeconomic environment.

Our focus on quality is reflected in feedback from our people. In our Global People Survey 91% of respondents agreed that their teams engage diverse perspectives and consult with specialists, as needed, to perform quality work (2025: 93%).

The average score from our Leadership in Quality and Ethics Survey was 9.4 out of 10, showing that our leaders continue to set an appropriate tone at the top, focused on the importance of audit quality (2025: 9.4 out of 10).

Experienced team members, including our managers and engagement leaders, continue to deliver a significant proportion of audit hours at 25% of total audit hours incurred (2025: 25%). Our average staff retention rate has also remained stable at 82% (2025: 80%).

Our structured training programme continues to evolve in response to new tools and the changing skills required by our teams to deliver quality audits and support the expanding role of the auditor.

By Alison Posa, Chair

Audit quality lies at the heart of trust for clients and financial markets alike. Boards, investors and the wider public must be able to rely on the information that underpins their decisions, and they look to audit firms to provide that trust. The Audit Advisory Board’s role is to bring an independent outside perspective to a key question: how does PwC New Zealand ensure that trust is justified?

Our work during the year addressed that question in five ways.

1. Reviewing quality outcomes

We reviewed outcomes from external reviews, PwC network inspections and the firm’s internal reviews. Inspection results show quality targets were exceeded or met and performance continues to improve. The rigour with which root causes are identified and learnings incorporated shows a commitment to continuous improvement.

2. Understanding quality management processes

We discussed the processes PwC uses to manage quality, understanding whether they are robust, well integrated and consistently applied. A critical question for the future is how those processes incorporate Maestro, PwC’s new AI-native audit and assurance platform.

3. Focusing on leading indicators of quality

Inspection results describe the past, so we looked for signals of future quality. These included people survey feedback, independence processes and results, and the firm’s commitment to developing professionals who confidently exercise judgement, challenge assumptions and understand clients’ businesses.

As seen in the audit quality balanced scorecard, the people engagement score remains high at 81% (80% in 2025), and the results from the leadership in quality and ethics surveys are excellent at 9.4 out of 10 (9.4 out of 10 in 2025).

4. Meeting the teams

Quality is ultimately delivered by people. We heard from teams who contribute to audit quality and questioned them about their work, the challenges they face and the support they receive.

The way PwC delivers audits is changing, and technology and offshore Acceleration Centres are an important part of that. We examined how offshore Acceleration Centres are governed and how their work is integrated into the wider audit process. Maestro will enable deeper, more efficient analysis, allowing audit teams to sharpen their focus on insight and challenge while keeping human judgement at the centre of audit opinions. The Audit Advisory Board gained confidence that teams are energised by this opportunity and are receiving training and development designed to capture the quality gains from faster data analysis, deeper understanding and sharper risk assessment.

As in previous years, we were impressed by the talent in PwC’s audit and assurance practice.

5. Considering governance of the broader organisation

Audit quality depends on the organisation around it. We met with the Chief Risk Officer, Chief Executive and Chair, and held robust discussions on how the firm’s broader leadership and governance protect the processes that safeguard audit quality. We were encouraged by the openness of these discussions and the priority leadership places on quality.

Looking ahead

The environment for businesses and auditors will remain demanding. Rapid technological change, economic uncertainty and rising stakeholder expectations will continue to test the profession.

The Audit Advisory Board continues to see its role as supporting and constructively challenging PwC’s audit and assurance practice.

Increasingly, quality will be judged not only by whether PwC consistently delivers audits that exceed the expectations of regulators, investors and clients, but also by the trust it can inspire in the systems and processes of clients rapidly integrating AI into their businesses. As clients, financial markets and other stakeholders seek assurance beyond financial statements, including over sustainability information and the integrity of AI-enabled processes, PwC’s audit and assurance practice is well placed to meet these broader needs.

Once again, the practice can be justifiably proud of how it has met these challenges.

The way audits are delivered continues to evolve as businesses and finance functions become more digital, complex and data-rich.

Today’s audit brings together a broader range of capabilities than the people working directly on-site with a client. Our engagement teams work alongside Acceleration Centre colleagues, technology and data specialists, and experts in areas such as IT, tax and valuations.

These capabilities are increasingly integrated into the audit from the planning and risk assessment stage, rather than brought in only when a particular issue arises. This multidisciplinary approach helps teams identify and understand complex issues earlier and strengthens their ability to challenge management effectively.

Acceleration Centres are an important part of this operating model. Dedicated teams can perform appropriate standardised and repeatable audit activities consistently, while building deeper expertise in particular procedures. Working across locations and time zones also extends the capacity and responsiveness of the wider audit team. This allows local teams to spend proportionately more time understanding the business, assessing risk and addressing areas requiring significant judgement.

Technology is also deeply integrated into the audit workflow. Our investment in Maestro, PwC’s next generation assurance platform, brings together risk assessment, data-driven analysis and secure communication in an AI-native environment built around PwC’s global audit methodology and professional standards. It will help our teams interrogate data more deeply, identify anomalies and sharpen the focus of risk assessment.

Technology is not simply about delivering the same audit with fewer hours of human effort. Its value lies in strengthening quality and consistency, supporting deeper analysis and helping teams focus their time and attention on the areas that matter most. Delivering audits that are better, faster and smarter.

These changes create greater capacity for auditors to focus on complex matters, significant risks and areas requiring challenge and discussion with management and audit committees. They can also give audit committees greater visibility into the audit process and the areas receiving the greatest attention.

Outputs need to be interpreted and evaluated by experienced professionals, with engagement leaders retaining accountability for the audit opinion.

The modern audit is therefore more than a digital version of the traditional audit. It is a connected, multidisciplinary and increasingly technology-enabled model, with professional judgement, scepticism and accountability at its centre.

Building trust in an AI-enabled world

As organisations increasingly adopt AI, trust in how these technologies are governed and used is becoming an important business and assurance consideration. PwC New Zealand is bringing together existing capabilities and experience across AI governance, data, security, model risk and controls to respond to emerging assurance needs.

For our audit practice, this means understanding how AI is becoming embedded in clients’ business processes, systems and controls, and considering the implications for the audit where relevant. This builds on our investment in AI capability and responsible use of technology, while recognising that human judgement, professional scepticism and accountability remain fundamental to high-quality assurance.

Drawing on PwC's global experience and emerging approaches, we are continuing to develop our capabilities in New Zealand. We expect independent assessment and assurance to play an increasing role in building confidence in AI‑enabled systems.

Audit quality is not only about how audit firms operate. Boards and audit committees also play an important role in setting expectations, challenging auditors and making informed decisions about audit quality and performance.

To support those conversations, we have refreshed a practical, evidence‑led guide for boards and audit committees. It is designed to help them assess whether their external auditor remains independent, capable and effective, and to support robust decisions about auditor performance, continued appointment and tenure.

The guide brings together the questions and evidence boards should consider and a practical approach to assessing audit quality throughout the audit cycle. It includes an annual assessment toolkit covering five areas of audit quality, a self-review of the board’s contribution to audit quality, and practical tools to support evidence-based decisions and shareholder communication.

It also provides guidance on periodically reviewing the auditor relationship, including weighing the benefits and risks of continuity and considering when a more comprehensive assessment may be appropriate.

The guide builds on the transparency provided in this report and is intended to support clearer, more informed and evidence-based conversations between boards, audit committees and auditors about what good audit quality looks like in practice.