Audit Quality Report 2019

Dedicated to trust. Committed to quality.

Audit quality

is fundamental to maintaining public trust and is the key measure on which our professional reputation stands.

We define “audit quality” as the outcome when audits are executed consistently, in line with the requirements and intent of applicable professional standards, within a strong system of quality controls.

All of our related activities are undertaken in an environment of the utmost level of objectivity, independence, ethics and integrity.

 

 

We are proud to present our 2019 Audit Quality Report, highlighting how we are harmonizing efforts across all areas of our business to continuously support and reinforce audit quality within a strong system of quality control.

 

 

 

Lynne Doughtie
U.S. Chairman & CEO

Frank Casal
Vice Chair, Audit

Key messages

Audit Quality Actions

I am incredibly proud of the focus our teams place on audit quality and delivering that through an exceptional client experience. Our collective efforts to leverage technology and employ continuous improvement principles are allowing us to make significant progress on the audit quality actions we put into place.


 


Jackie Daylor
National Managing Partner,
Audit Quality & Professional Practice


 


 


 

KPMG actions in 2019

Established a plan to invest a further $5 billion globally on digital leadership in professional services over the next 5 years

KPMG Clara, our smart audit platform, is coming online

Further standardized audit documentation

Expanded the use of enabling technologies through new audit tools

Advanced efforts to develop Audit Quality Indicators

Implemented program related to Critical Audit Matters in the auditors' report

Expanded Audit Quality Support Partner program

Increased centralized service delivery through Global Delivery Centers and Centers of Excellence

Implemented culture action items

Refreshed KPMG values worldwide

Introduced Audit Core Competency Framework

Opened KPMG Lakehouse (January 2020), our $450 million investment in transformational learning, development and innovation

Evaluated our Audit training curricula and the elements necessary to support our objectives and execution

Enhanced system of quality control

 

 


 

Audit Evolution

We use technology to advance audit quality,

create greater consistency in the performance of audits and strengthen the monitoring of engagements.

We believe audit quality is best achieved when the power of smart technology is matched with inquiring minds and professional skepticism, and our tools support exactly that.

 

Standing still is not an option. We are always thinking about the future, and the continuous cycle of improving what we do and how we do it. Our role is to look forward so we deliver an exceptional experience for our clients and our next-generation auditors.


 


John Farrell
Chief Innovation Officer,
Audit

 

KPMG Clara, our global smart audit platform, is our most important technology initiative focused directly on driving audit quality. Designed with data security as a critical building block, it transforms the audit experience for our professionals and helps our clients understand the work we are doing in a timely way.

 

KPMG Clara creates a differentiated experience for our audit professionals and clients. It’s a single, integrated platform, and the foundation for bringing together our technology and providing additional digital options for the performance of audits.


 


Matt Bishop
Chief Technology Officer,
Audit


 


 

Culture Journey

A culture based on quality, integrity and ethics

is essential in an organization that carries out audits and other services on which stakeholders and investors rely.

Each of us shares the responsibility to nurture and strengthen our culture.

Our collective commitment requires deliberate and full-time leadership to ensure that culture remains foundational to our strategy and long-term success.

 

We are working to ensure our culture brings out the best of KPMG and translates to a positive experience for our people, our clients and our communities. This is a critical element supporting our commitment to audit quality and maintaining public trust.


 


Claudia Saran
Chief Culture Officer


 


 

Extraordinary People

Our extraordinary people drive audit quality.

They need the appropriate skills and experience, passion and purpose, to deliver the highest quality in audit.

Our success relies on diversity of thought and skills, technical aptitude, professional skepticism, personal accountability, and the courage to prevent biases or blind spots from compromising our work.

 

 

The centerpiece of our commitment to excellence and lifelong learning is KPMG Lakehouse -- our professional learning, development and innovation center that opened in January 2020.

 

#KPMGLakehouse


 

Lakehouse is more than a building – it’s a testament to the importance of learning at KPMG. It anchors our strategy of continuous learning. The highly engaging experiences we deliver at Lakehouse are designed to inspire our people to drive their development throughout the year.


 


Corey Muñoz
Chief Learning Officer


 


 

Citizenship in Action

 

Inclusion and diversity are foundational to the firm’s values and are part of our strategic priorities. Our commitment to sustainability is part of our culture and who we are as a firm.

Our promise of instilling confidence and public trust is not complete without the

lasting impact

we continue to make in our communities.
 

We empower our leaders to embed inclusion and diversity into all of their business- and people-related strategies and processes. We hold them accountable for advancing inclusion and diversity at every level of our organization. We all recognize that it is the collective power of our diversity and experiences that will allow us to thrive in the market as an employer and service provider of choice.


 


Michele Meyer-Shipp
Chief Diversity & Inclusion Officer


 


 

Quality Control System

Our system of quality control

Our Audit Quality Report highlights the steps we have taken in 2019 to evolve and enhance our Audit practice and our firm. It provides an overview of how we are strengthening our culture, continuing to invest in our people, and the new technologies that will enable our workforce. All of these efforts are carried out and connected within the framework of our system of quality control – a system that ensures our performance meets the highest professional standards.

 

Transparency Report 2019
Read about KPMG's system of quality control in our Transparency Report and accompanying supplements.


 

Read the full report

KPMG Audit Quality Report 2019
Our Audit Quality Report highlights the steps we have taken in 2019 to evolve and enhance our Audit practice and our firm. It provides an overview of how we are strengthening our culture, continuing to invest in our people, and the new technologies that will enable our workforce.