Annual report for the fiscal year from 1 July 2011 to 30 June 2012

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Company
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EthicsPoint
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A hotline and externally hosted
website are available for reporting
misconduct. At any time.
Controlling risks
“Quality In Everything We Do” – this is the commitment
that Ernst & Young makes to its clients. Whenever, wherever
a client needs assistance in their corporate activities,
Ernst & Young will respond with tailored advisory services
and independent audits, attestations and expert opinions.
Services that our clients and their stakeholders can rely on.
Independence and objectivity are the measures against
which auditors and advisors are assessed. They are critical in
order to secure public confidence in financial and corporate
communication, which in turn is extremely important for
the success of the client. As a result, Ernst & Young develops
its quality and risk management concepts far beyond
what is required by law. The professional Quality & Risk
Management (Q&RM) team assists colleagues in their
efforts to deliver auditing and advisory services, which can
be extremely complex, in accordance with regulatory provisions.
Independence is a key factor throughout. Additionally,
the Q&RM team strives to prevent any potential conflicts
from developing at all and monitors compliance with
all statutory provisions and internal directives. The quality
pledge is not an abstract statement but something to be
put into practice every day by each individual employee. At
the leadership level, the Quality & Risk Management and
Compliance Leader is also a member of the Management
Committee of Ernst & Young Ltd.
Lean leadership
The governance of Ernst & Young Switzerland encompasses
the companies that belong to ATAG Ernst & Young
Holding Ltd (the “holding company”). The operating
company registered as the audit firm under state oversight
is Ernst & Young Ltd, which is wholly owned by the holding
company. The holding company also controls other companies,
including our subsidiary in Liechtenstein.
The Board of Directors of the holding company is
made up of three members: the Chairman of the Board of
Directors, who is not a member of the Ernst & Young Ltd
Management Committee, the Country Managing Partner
(CEO) and an EMEIA representative, who leads Financial
Services at Ernst & Young Ltd in addition to assuming a
management role within EMEIA. The Management Committee
and Board of Directors functions are assumed by
the same people at Ernst & Young Ltd. The members of
Ernst & Young Ltd’s Management Committee are selected
at the request of the CEO by the Board of Directors of
ATAG Ernst & Young Holding Ltd.
Avoiding conflicts of interest
The holding company’s capital is wholly owned by the
partners of Ernst & Young Switzerland through the ATAG
Ernst & Young partner pool. The partners are the sole
owners of the company and can voice any concerns they
may have as regards day-to-day business and the general
management structure. At a national (Partners’ Committee)
and international level (EMEIA Advisory Council
and Global Advisory Council), additional governance
bodies without management responsibility have also been
established with partners. These bodies are an additional
channel for owners to make recommendations.
Here at Ernst & Young, avoiding conflicts of interest is
a matter of the highest priority. Partners and their family
members are not permitted to hold financial interests in
audit clients.
It is also forbidden for partners to accept board member
mandates with other companies unless that company
belongs to the family of the respective partner or the
position relates to a charitable organization. Each partner
must confirm adherence to these principles every three
months. This information is subject to a random, independent
review once a year. In addition, ongoing analyses
are conducted to monitor independence aspects of business
relationships with other companies, e.g., suppliers.
Before entering into a business relationship, any potential
conflicts of interest are investigated using a centrally
controlled system.
Sustainability management
Sustainability is an integral theme of corporate governance.
In the current reporting year, we launched a structured
sustainability management process at Ernst & Young
Switzerland, which will continue to be implemented in the
2012/13 reporting year. As of the current fiscal year, we
disclose our sustainability performance according to the
criteria of the Global Reporting Initiative (GRI) guidelines.
As part of the reporting process, the Board of Directors
Annual report 2012