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  • TransparencyReport 2016

    EY Lao

  • Transparency Report 2016: EY Lao 2

    ContentsMessage from the Country Managing Partner .................................................................................................................. 3

    About us ...................................................................................................................................................................... 5

    Legal structure, ownership and governance ................................................................................................................. 5

    Network arrangements .............................................................................................................................................. 5

    Commitment to quality .................................................................................................................................................. 8

    Infrastructure supporting quality................................................................................................................................. 8

    Instilled professional values ........................................................................................................................................ 9

    Internal quality control system .................................................................................................................................. 10

    Client acceptance and continuance ............................................................................................................................ 11

    Performance of audits ............................................................................................................................................. 11

    Review and consultation .......................................................................................................................................... 13

    Audit partner rotation .............................................................................................................................................. 14

    Audit quality reviews ............................................................................................................................................... 14

    External quality assurance review ............................................................................................................................. 14

    Compliance with legal requirements .......................................................................................................................... 16

    Independence practices ............................................................................................................................................... 17

    Continuing education of audit professionals .................................................................................................................. 19

    Revenue and remuneration .......................................................................................................................................... 20

    Financial information ............................................................................................................................................... 20

    Partner remuneration .............................................................................................................................................. 20

    More information about EY can be found at ey.com.

  • Transparency Report 2016: EY Lao 3

    Message from the Country Managing Partner

    Welcome to our first Transparency Report of Ernst & Young Lao Co.,Ltd (EY Lao). We appreciate that our stakeholders want tounderstand how we advance audit quality, manage risk and maintain our independence as auditors. Regular dialogue is importantto us, and this report is one of the ways in which we advise our stakeholders on what we are doing in each of these areas.

    Executing high-quality audits continues to be our top priority and is at the heart of our commitment to serve the public interest.It enables us to grow the global EY network successfully and responsibly, while achieving our purpose of building a better workingworld. Auditors play a vital role in the functioning of capital markets by promoting transparency and supporting investorconfidence. Companies, regulators and other stakeholders count on us to deliver excellence in every engagement.

    We are focused on investing in tools to improve what we do, creating the highest-performing teams, and building trust andconfidence in the audits we perform.

    EY Laos reputation is based on and grounded in providing high-quality professional audit services objectively and ethically toevery company we audit.

    We continue to embrace the transparency objectives of the Law on independent Audit by National Assembly of Lao People'sDemocratic Republic (Law on independent Audit of Lao PDR), which require Lao statutory auditors of public interest entities(PIEs) to publish annual transparency reports.

    The 2016 EY Lao Transparency Report complies with the directive and Law on Independent Audit of Lao PDR, and covers thefiscal year ended 31 December 2016. In this report, you can learn more about our internal quality control system: how we instillprofessional values, how we perform an audit, our review and consultation processes, our approach to audit quality reviews, andour independence practices.

    EY Lao is focused on enhancing audit quality and upholding our independence, informed by several matters including externaland internal inspection results. Continuous improvement of audit quality requires us to challenge approaches to audit execution,and we focus on this by evaluating all inspection findings and taking responsive actions.

    At EY Lao, we believe that the investments we make in recruiting and developing our professionals are critical to our success andstrengthening our service offerings to clients. The feedback from our people through the Global People Survey is an importantmeasure of how well we are doing, including how we engage with our people.

    Regular dialogue with our stakeholders remains a priority for us. During the past year, we have spoken to many of our people andour stakeholders about the investments we are making as part of our new strategy. We are very excited about our renewed senseof purpose.

    We encourage all our stakeholders including investors, audit committee members, companies and regulators to continue toengage with us on our strategy as well as any of the matters covered in this report.

    Tran Dinh Cuong

    Country Managing Partner

    Ernst & Young Lao Co.,Ltd

  • Transparency Report 2016: EY Lao 4

    EYs purpose: building a better working worldEY is committed to doing its part in building a better working world.

    The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the worldover. We develop outstanding leaders who team to deliver on our promises to stakeholders. In so doing, we play a critical rolein building a better working world for our people, our clients and our communities.

  • Transparency Report 2016: EY Lao 5

    About usLegal structure, ownership andgovernanceErnst & Young Lao Co.,Ltd is a limited liability companyorganized in Lao People's Democratic Republic (Lao PDR)and is a member firm of Ernst & Young Global Limited, a UKcompany limited by guarantee (EYG). In this report, we referto ourselves asEY Lao, we, us or our. EY refers collectively to theglobal organization of the member firms of EYG.

    EYG member firms are grouped into four geographic Areas:Americas; Asia-Pacific; Europe, Middle East, India andAfrica (EMEIA); and Japan. The Areas comprise a number ofRegions, which consist of member firms or sections of thosefirms. Within the Asia-Pacific Area, there are five Regions.EY Lao is part of the Asean Region.

    EY Lao is part of the Asia-Pacific Area, which comprisesmember firms in 22 countries and is a member of Ernst &Young Asia-Pacific Limited (Asia-Pacific Limited).

    Asia-Pacific Limited, a Hong Kong company limited byguarantee, is the principal coordinating entity for the EYGmember firms in the Asia-Pacific Area. Asia-Pacific Limitedfacilitates the coordination of these firms and cooperationbetween them, but it does not control them. Asia-PacificLimited is a member firm of EYG, has no financialoperations and does not provide any professional services.

    Organizational structure of EY Lao is as follows:

    - Legal name: Ernst & Young Lao Co., Ltd- Head Office: 6th floor, KOLAO TOWER I, 23 Singha

    Road, Nongbone Village, Saysettha District, VientianeCapital, Lao P.D.R.

    - Phone Number: +856 21 455 077- Ownership type: Limited liability company- Legal representative: Mr. Tran Dinh Cuong- Board of Management:

    In accordance with legal structure

    Name Position Legal entityposition

    Tran DinhCuong

    Managing Partner Director

    Trinh HoangAnh

    Partner DeputyDirector

    Supporting partners from network

    Name PositionVu Thi Thu Huong PartnerNguyen Thuy Duong PartnerNguyen Thai Thanh PartnerLe Duc Truong Partner

    Network arrangementsEY is a global leader in assurance, tax, transaction andadvisory services. Worldwide, 250,000 people in memberfirms in more than 150 countries share a commitment tobuilding a better working world, united by shared values andan unwavering commitment to quality, integrity andprofessional skepticism. In todays global market, theintegrated EY approach is particularly important in thedelivery of high-quality multinational audits, which can spanmultiple jurisdictions.

    This integrated approach enables EY to develop and d