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TransparencyReportfor the year ended 30 June 2020PricewaterhouseCoopers UAB

Contents42883214Cultures and values342535Opening messageOur approach to qualityOur peopleOur audit approachMonitoringLegal and governance structurePwC Network2

Message from leadershipWelcome to our 2020 Transparency reportThis report includes information about how the firm is governed. While PwC is a multidisciplinary firm, this report isprimarily focused on our audit practice and related services. The audit profession continues to be under significantpublic scrutiny and challenge. We understand the concerns and we support and are committed to changes that willimprove audit quality.Over the last year, PwC Global opened up a public discussion on the future of audit and have been listening to a widerange of stakeholders, exploring how it needs to change to meet society’s evolving expectations. We know there are noeasy answers and that no single participant can resolve the challenges but we are committed to changes that ensureaudits remain relevant and valuable.Of course this year, continuing to deliver audit quality during the COVID-19 pandemic was an unprecedentedchallenge and key focus area for us. We talk about this on page 11.At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 155 countrieswith more than 284,000 people who are committed to delivering quality in Assurance, Advisory and Tax & Legalservices.’We are committed to drive a strong culture of quality and excellence that is core to our purpose.Our people are key to performing high quality audits and we draw upon a wide range of specialist skills across ourmultidisciplinary practice. That’s why we maintain a constant emphasis on our purpose and values that address integrityand independence. We continue to invest in our people by providing ongoing professional and personal development,with in depth training.We have taken steps to align our business to support this focus on audit quality. We continuously invest in innovationand new technology to support our services across the firm, to meet the changing audit challenges in a digital age andto enhance the quality of our audit services.Taken together, these measures represent a significant transformation of our audit business and support our focus onaudit quality and our public interest responsibilities.We have prepared this Transparency Report, in respect of the financial year ended 30 June 2020, in accordance withthe requirements of Article 13 of the EU Regulation No. 537/2014 and of the Council of 16 April 2014 on specificrequirements regarding statutory audit of public-interest entities.Rimvydas JogėlaCountry Managing PartnerVilnius, Republic of Lithuania30 October 20203

A message from our AssuranceLeaderContinuing the discussion onaudit qualityTrust lies at the heart of everything we do atPwC. It’s fundamental to fulfilling our firm’spurpose. One of the ways we build trust isby being transparent.We welcome the public conversations thatarise as a result of transparency about auditquality.As auditors, we’re also acutely aware ofanother trust driver: the quality of ourexternal audits. That’s why we’re pleased topresent our Transparency Report for ourfinancial year ended 30 June 2020, whichshows how we maintain quality in our auditwork. The report describes our policies,systems and processes for ensuring quality,the results of key quality monitoringprograms and reviews, and the way wefoster a culture of quality at every level ofthe firm. It details the companies weperformed audits for and the total revenuefrom our audit and non-audit work.Our audit business is fundamental to ourstrategy and brand. We continue to invest incontinuous improvement in audit qualitythrough new systems and technology, riskprocesses and learning and development forour people. I welcome the opportunity todiscuss the increased importance of auditquality going through our TransparencyReport.Our ultimate goal is that Authority of audit,accounting, property valuation andinsolvency management considers that wehave obtained reasonable assurance in allaudit areas. We are driving a qualityimprovement plan aimed at achieving thisgoalRasa RadzevičienėAssurance Leader4

Year in reviewOur system of qualitymanagementAudit quality reviews - externalResults from audit quality review for 2015-2017period - number of reviews, including the totalnumber resulting in findingsNumber of hours spent onmonitoring for CEE in total6,400 hours for CEE region120 hours for territory3Number of financialstatement restatementsinvolving PIE audits due tomaterial errors21 finding2015-201775 %Quality findings identifiedand remediated / inprocess of remediating.0.82%6Real time reviewsNumber of auditengagements included in thereal time review program9RestatementsWithout findingsPercentage ofrestatements of financialstatement for issuer auditclientsWith findingsauditengagementsAuditing and accounting training hoursWith over 2,000 hours spentby a fully dedicated teamNumber of hours of auditing and accounting training mandated byPwC annuallyAssurance Training FY20Average hours achieved by partnersand staff315485onlineclassroomtotalTotal hourscompletedPartnersManagers5,742Senior AssociatesAssurance Training FY19AssociatesAverage hours achieved by partnersand staff203555onlineclassroomtotalTotal hourscompleted4,1120102030405060708090Project managementBudget to actual hours incurred for PIE auditsTechnical support** on CEE regional basis21.29118.569Total hours1 to 4.022.230Total hoursRatio of total CEE Partners servingin technical support roles to the totalnumber ofCEE auditpartners16.650Experience of our PartnersPartners’ average years ofexperience at PwC20 yearsFY19FY20BudgetActuals5

Our quality improvementprogrammesAt PwC, we are invested in continuouslyimproving our audit quality through thedesign and operation of an effectivesystem of quality management. Thisincludes a focus on the following keyareas: Continuing to strengthen our qualityculture to support our Partners andteams display behaviours consistentwith driving audit quality Integration of the use of AssuranceQuality Indicators to aim to predictquality, Real Time Assurance to aimto prevent quality issues, RootCause analysis to learn from qualityissues and a Recognition &Accountability Framework toreinforce quality behaviours,cultures, and actions“At PwC, our purpose is at the coreof what we do and why we do it.”Rimvydas Jogėla, PricewaterhouseCoopers UAB6Country managing Partner

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Ourapproachto Quality

Our approach to delivering quality servicesacross all our operations and networkFocus on QualityMeasurement and transparencyThe quality of our work is at the heart of ourorganisation and we invest significant andincreasing resources in its continuous enhancementacross all of our businesses. This investment istargeted into many different areas, including training(technical, ethical and behavioural), methodologies,adding resources in key areas and exploring newways of delivering our work. Each investmentreflects a common determination to understand thefactors that drive quality and identify opportunitiesfor enhancement.For all our businesses, each PwC firm – as part ofthe agreement by which they are members of thePwC network – is required to have in place arigorous system of quality management (SoQM); toannually complete a SoQM performanceassessment; and to communicate the results ofthese assessments to global leadership. Theseresults are then discussed in detail with theleadership of each local firm and if they are not atthe level expected, a remediation plan is agreedwith local leadership taking personal responsibilityfor its successful implementation.We are also investing heavily in new technology todri

online Average hours achieved by partners and staff 54 classroom 85 total Total hours completed 5,742 Assurance Training FY19 20 online Average hours achieved by partners and staff 35 classroom 55 total Total hours completed 4,112 6 2 Project management Budget to actual hours incurred for PIE audits Budget Actuals FY20 FY19 16.650 18.569 rs 22. .