“Quality auditing is an art.”

Claudia Benz
Partner, Member of the Executive Committee and Quality and Regulatory Leader, PwC Switzerland

Article overview

Claudia Benz, what do you understand by quality in assurance?
In a narrow sense, I understand it to mean compliance with standard regulations and reporting requirements. A quality audit supports a board of directors in fulfilling its ultimate responsibility as the highest management body. In a broader sense, I also believe that quality includes transparency and reliability in communication with stakeholders. Both interpretations define quality as an indispensable building block with which a company can engender trust.

How important is assurance quality in Switzerland?
Quality should be important in every country. Of course, there are differences in the maturity of legislation and supervision. But quality has a special significance for companies in Switzerland. We may be a small country, but we are a central location for listed companies and multinational corporations. These companies must make their financial statements internationally comparable. This means that, in addition to the statutory financial statements as the basis for tax returns, one or more financial statements prepared in accordance with global standards are required. This complexity can only be managed by striving for maximum quality.

How do audit clients see this?
Quality is a flexible term. Some are satisfied with compliance, while others value comprehensive quality because they see it as added value.

What would that be?
For example, a quality audit can help to illuminate a blind spot in management and draw attention to things that are not recognised or are being ignored. With a certified and usually technology-supported audit, we can also confirm the customer's assumptions and give them the assurance that everything is running according to plan.

And if it isn’t?
Regardless of what our work reveals, the findings of a neutral third party enrich the internal perspective of the company's management. Incidentally, I see this as our raison d’être as an auditing firm. We ensure that stakeholders such as tax and supervisory authorities, companies and investors trust one another. When we address issues that cause friction, we contribute our expertise, which may also include topics such as process optimisation or artificial intelligence.

Is there such a thing as momentum for quality audits?
In the debate about risks and the audit approach, there is, yes. When we discuss with the board of directors where it sees the risks for the company, we find out where the problem lies. This exchange reveals whether our audit approach covers the right risks or whether something additional is needed – and why. This dialogue gives both sides the opportunity to understand what is relevant and what needs to be done. For me, this is the most exciting moment of all and a key to mutual trust.

Please give an example of how a quality audit can be useful.
A ‘short seller attack’ is an attack on listed companies with the aim of causing their share prices to plummet. This involves presenting unconfirmed information and circumstantial evidence that can lead to incorrect valuations. We cannot prevent short seller attacks on our clients, but we can help them to refute the attackers’ arguments and defend themselves effectively with a quality audit.

What skills does this work require of an auditor?
Quite a few. The experts on our Quality Assurance teams need enormous in-depth specialist knowledge – which we call subject matter expertise. They also need to be professionally sceptical, question things, dig deeper and not let up until they obtain satisfactory answers. Strong empathy and good communication skills are also essential. After all, they are communicating with high-calibre executives about sensitive issues. And finally, they need a healthy talent for working with new technologies and tools.

What is important to you personally?
For me, quality auditing is an art. It’s about providing every client with the right specialists who have the appropriate technical and interpersonal skills and all the necessary tools and technologies. After all, every audit engagement has its own complexities. In my role as Quality Manager, I want to ensure that our assurance teams deliver quality that far exceeds mere compliance. I see this service as fundamental to the smooth functioning of economic actors and financial markets. That’s why I'm proud that we pursue such high quality standards at PwC.

Thank you, Claudia Benz, for the insightful conversation.