Welcome to our Audit Quality and Transparency Reports. We will continue to provide ongoing updates to our actions and activities to assure our audits are executed consistently within a strong system of quality controls and in line with the professional standards requirements all to promote audit quality every day.
Audit Quality Report
Related resources
KPMG Audit
U.S. CEOs cited cost of living (80%), regulatory demands (77%) and disruptive technology (76%) as the top risks to growth over the next three years.
The era of compound volatility
STATISTICS
CEO confidence in the growth prospects for their company (79%) is more subdued than in 2022 (95%).
79%
The era of compound volatility
STATISTICS
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Meeting stakeholder expectations through continuous improvement, quality management and technology.
Auditing in an Era of Compound Volatility
INSIGHT
A risk-based data-driven approach
that anticipates what’s next and uncovers efficiencies across the audit process. You can focus on your
business while we focus on delivering quality and insights.
A better audit experience starts
with a different approach
Approach
At KPMG, a better audit experience starts...
Delivering an Innovative
and Reliable Audit in an
Age of Disruption
INSIGHT
The James Webb Space Telescope has captured the clearest images yet of galaxies hundreds of millions of light-years away, illuminating starbursts...
What is a data-driven audit?
INSIGHT
The future audit might be enabled by AI, but quality outcomes will always be powered by our people.
AI-Enabled & Human-Powered
INSIGHT
In Audit, we piloted an Energy Check-In Initiative, using a data-driven approach to identify people who are potentially at risk of burnout so that we can direct managers to hold conversations with them and devise personalized strategies.
Harnessing data to support
our people
STATISTICS
From top-down to bottom-up, quality is...
Embedding Quality and Continuous Improvement throughout the Audit
INSIGHT
Standardizing, centralizing and automating key areas of the audit to drive consistency across our portfolio and create capacity for more extensive pre-issuance reviews.
Strengthening Audit Quality
INSIGHT
Cloud, automation, digitalization,
artificial and cognitive intelligence — these investments are increasingly...
Digitization Trends and
Audit Implications
INSIGHT
Evolving stakeholder expectations and the transformation of how and what we audit.
The Future of the Profession
INSIGHT
of U.S. CEOs say generative AI is a top investment priority.
72%
When asked to identify the top benefit of implementing generative AI in their organization, U.S. CEOs cited increased profitability, new product and market growth opportunities, increased innovation, and help with fraud detection and cyber-attack response.
Generative AI a promising pathway to growth
STATISTICS
automated routines deployed
100+
We have developed and deployed 100+ automated routines, many of which are industry specific, up from ~60 last fiscal year. Today, nearly 900 engagements have deployed these routines, nearly double that of the previous year.
Driving speed to insights
STATISTICS
of individuals who engaged in Energy Check-Ins report they were helpful in supporting their overall well-being.
77%
of financial reporting leaders expect AI to attract more talent.
52%
Financial reporting leaders expect AI to benefit talent and diversity, making accounting a more attractive and data-driven career path for professionals.
AI as a boon to talent
STATISTICS
of financial reporting leaders believe external auditors are ahead of financial reporting functions on using AI and expect AI to enhance audit quality.
72%
Financial reporting leaders expect auditors to use AI to ask the right questions and challenge, conduct data analysis, and find new risks and anomalies.
AI in financial reporting
and the audit
STATISTICS
partners and 263 assistants comprise our SEC Reviewing Partner team.
281
Coordinating efforts between Risk Management, the Department of Professional Practice and our SEC Reviewing Partners team, we can deliver pre-issuance reviews at scale.
Expanding pre-issuance reviews to enhance audit quality
STATISTICS
Chair and CEO,
KPMG US
Paul Knopp
Vice Chair — Audit,
KPMG US
Scott Flynn
of businesses say they are feeling at least some pressure from supply chain partners to engage on ESG.
All companies are feeling pressure from stakeholders to engage on ESG, but supply chain partners are the new tip of the spear.
Supply chain pressures
STATISTICS
~3,000 global audits using AI tech for transaction scoring
Building on our global multi-year collaboration with Mindbridge, we are expanding our use of KPMG Clara Transaction Scoring, which enables us to analyze 100% of the transactional general ledger population, enabling rapid conclusions over accounts, and identification of outlier transactions to focus on underlying issues.
~3,000 auditors trained on advanced data extraction technology
We’ve developed a suite of technologies and data extraction capabilities to automate transfer of data used in the audit. ~3,000 auditors are trained to use these advanced data transformation capabilities, which feed our analytics, enhancing audit quality.
AI will completely transform the audit. This year, we announced a $2B+ global investment in our expanded alliance with Microsoft to embed AI throughout our business. This investment is one of many initiatives to embed AI in everything we do.
100,000+ Runs of approved KPMG Audit Chat prompts in first 60 days post-launch
In June of 2023, more than 500 KPMG users began piloting KPMG Audit Chat, our proprietary generative AI tool built on the back of Microsoft Azure’s OpenAI Service. By October, we launched that capability to our 9,000+ auditors with ~60 use cases focused on audit quality and productivity. There were >100K runs of approved prompts In the first 60 days post-launch.
4x increase in advanced tech use in a typical audit since 2021
When evaluating our progress, we track our deployment of more advanced data extraction, transformation, analytic, and visualization capabilities over time across our entire portfolio. As of the end of FY23, we are now using more than 4X the technology in a typical audit than just two years ago.
global audits using AI tech for transaction scoring
~3,000
auditors trained on advanced data extraction technology
~3,000
invested in embedding AI across our firm
$2B+
Runs of approved KPMG Audit Chat prompts in first 60 days post-launch
100,000+
Increase in advanced tech use in a typical audit since 2021
4x
Our suite of technology meets you on your IT journey for a data-driven audit
100% of all public audits will undergo increasingly expansive pre-issuance reviews this audit cycle
This multi-year practice-wide effort and investment has fundamentally changed the audit lifecycle. Partners and professionals within our engagement teams, centralized services, and Department of Professional Practice collaborate to conduct more work earlier in the audit cycle, creating capacity for more extensive pre-issuance reviews.
~6,000 accounting and auditing consultations in FY23
Our national consultations are highly collaborative, involving a thorough understanding of the entity’s views as well as the analysis and judgments of both DPP and the engagement team. These consultations also include a specific Industry Liaison Program.
2.3M audit hours of specialized skills across Audit, Tax, and Advisory
We are focused on looking across our firm to tap people with specialized skills at the right time to deliver quality audits and deeper insights. Last year, Audit, Tax, and Advisory professionals with specialized skills dedicated more than 2.3 million hours to our audits, up 4% from FY22.
>99.8% of audits without a restatement in recent years
We take a holistic approach to measuring audit quality, including evaluating our PCAOB inspection results, restatement trends, milestone efforts, resourcing, and utilization, learning and development, and use of technology. Our rate of restatement in recent years has been among the lowest in the Big 4.
of all public audits will undergo increasingly expansive pre-issuance reviews this audit cycle
accounting and auditing consultations in FY23
~6,000
audit hours of specialized skills across Audit, Tax, and Advisory
2.3M
Our system of quality control sustainably enhances quality
Explore the numbers
See how...
of audits without a restatement in recent years
>99.8%
The foundations of quality
Businesses today are increasingly navigating compound volatility – the combination of greater disruption and long-term structural changes taking shape across industries, geographies, technology, regulations, and society.
The 2023 KPMG U.S. CEO Outlook
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Your audit is streamlined and
enhanced with technology, powering
the use of data and automation to deliver real-time visibility into progress, audit insights, and sustained quality.
Fit-for-purpose technical
capabilities — in the hands of
our highly-skilled people
Technology
Your auditors understand your industry and business, and bring diverse perspectives to deliver an exceptional audit experience. They are empowered through our culture, learning and development programs and technology
investments to be Next Gen Auditors
— a talented, diverse group
of professionals.
Auditors fluent in technology,
expert in your industry
People
We are continuing to move beyond compliance-only auditing, investing
in an iterative, data-driven and collaborative process to continually measure, improve and lock in
quality-sustaining actions.
The relentless focus on enhanced quality — not just compliance
Quality
Your business is unique, facing
different risks and opportunities
across technology, disruption, and
ESG trends. We bring diverse teams steeped in your sector, a culture
of innovation, and continue to invest
in future-focused capabilities and technologies to stay ahead of
the curve.
Deep industry experience
infused with Technology Assurance
and ESG capabilities
Future of Audit
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By championing mindful ambition, we help support our people’s mental health and well-being.
Mental Health is Health
INSIGHT
Audit Quality Report
Transparency Reports
Transparency Reports
62% of professionals are from underrepresented groups
KPMG continues to attract, retain, and develop talented professionals from all backgrounds. At the end of FY23, 62% of our professionals were from under-represented groups as were 41% of partners or managing directors. These represent a respective 5% and 14% increase since FY20.
23,000+ hours on Artificial Intelligence
Trusted AI is our strategic approach and framework to designing, building, deploying, and using AI solutions in a responsible and ethical manner. It is values-led, human-centric and trustworthy. In FY23 alone, Audit partners and professionals spent 23,000+ hours learning about the connection between AI and ethics.
250,000 hours training on technology and data in the past 3 years
Technology is fundamentally reshaping the audit and KPMG Is dedicated to investing and deploying technology across all of our audits. In the past three years, our professionals have collectively spent more than a quarter of a million hours learning how to best leverage technology and data in the audit.
23,600 Tech Stars awarded
Our hunger for innovation is best illustrated by our Tech Stars program. Our auditors earn stars for investing in their personal career development, anchored in demonstrating their increasing expertise to infuse your audit with fit-for-purpose technology. Through FY23, 23,600 Tech Stars were awarded, up from 17,000 in FY22. In total, more than 3,500 people participated in the program.
30,000+ hours on industry-focused learning
Industries are rapidly evolving and disrupting today. In FY23, our auditors spent 30,000+ hours on industry-focused learning, including audit and accounting issues, risk assessment standardization, and new technology routines.
of professionals are from underrepresented groups
62%
hours training on Artificial Intelligence
23,000+
hours of learning on D&A and enabling technologies
250,000
Tech Stars awarded
23,600
hours on industry-focused learning
Quality comes to life through our people
30,000+
100%
$2B+ invested in embedding AI across our firm
KPMG.
Make the Difference.
This year, Wendy Lewis, Audit Partner, became the first Black woman to serve as chair of the Virginia Board of Accountancy. She aims to open doors to the CPA profession for people from diverse backgrounds and lead the board through the evolution of the accounting profession. Congrats, Wendy!
Wendy Lewis
of U.S. CEOs see generative AI as a double-edged sword.
85%
KPMG.
Make the Difference.
This year, as part of a first-place win in the In Pursuit of Health Equity Hackathon, Audit senior associate Alanna Pundsack leveraged firm-enabled technologies for her winning project: creating tailored data sets that crystallized healthcare access gaps in cities across the U.S.
Alanna Pundsack
KPMG.
Make the Difference.
Ashleigh White, Audit Managing Director received the 40 under 40 for Black Women in Asset Management in the Private Markets category. Ashleigh believes having mentors and allies is important for inclusion and for advancing the accounting profession Congrats, Ashleigh!
Ashleigh White
KPMG.
Make the Difference.
This year, Abby Rawls, Audit Associate, lead her local office through a Mental Health Seminar. Her efforts led to open and honest conversations among team members and inspired Mindful Mondays, a series of one-hour sessions that create a safe environment to discuss wellbeing. Thank you, Abby!
Abby Rawls
KPMG.
Make the Difference.
Ed Moran, Audit Managing Director, and David Fisher, Audit Associate Director, co-led the Audit Industrial Manufacturing AI session at KPMG Lakehouse to show how AI can identify cases that would most impact the audit. 95% of attendees left with more confidence in discussing AI with their clients.
Ed Moran and David Fisher
KPMG.
Make the Difference.
Every year, KPMG celebrates its Elijah Watt Sells Award winners, who obtain a cumulative average score above 95.50 across all sections of the CPA exam. Victoria Saravia Bazoberry, Audit Senior Associate, was one of 50 winners in 2022 and represents the bright future of our audit practice.
Victoria Saravia Bazoberry
Nearly 90%
of U.S. CEOs report that they have fully embedded ESG into their business as a means of value creation.
More than half of U.S. CEOs expect to see significant returns from their ESG investments in the next three-to-five years. ESG is not just a compliance exercise, but an opportunity to drive financial value and build trust.
ESG and financial value
STATISTICS
74%
Audit Quality Report
Transparency Reports
of U.S. CEOs feel under-prepared for a
cyber attack.
28%
of U.S. CEOs feel under-prepared for a cyber attack.
28%
Read More
The people you work with can make all the difference, not only in your day, but also in your career and in the experience of a client.
Empowering Our People Promotes Audit Quality
INSIGHT
Read More
KPMG is proud to provide opportunities and enable progress needed to build a skilled and diverse workforce.
Breaking down barriers to the CPA
INSIGHT
Read More
At KPMG, a better audit experience starts...
Delivering an Innovative and Reliable Audit in an Age of Disruption
INSIGHT
Read More
The James Webb Space Telescope has captured the clearest images yet of galaxies hundreds of millions of light-years away, illuminating starbursts...
What is a data-driven audit?
INSIGHT
Read More
The people you work with can make all the difference, not only in your day, but also in your career and in the experience of a client.
Empowering Our People Promotes Audit Quality
INSIGHT
Read More
KPMG is proud to provide opportunities and enable progress needed to build a skilled and diverse workforce.
Breaking down barriers to the CPA
INSIGHT
Read More
To continue thriving and succeeding together, and to continue producing a high-quality audit, KPMG is committed to providing ...
Health and Well-being: Providing for the Needs of Our People
INSIGHT
Read More
From top-down to bottom-up, quality is...
Embedding Quality and Continuous Improvement throughout the Audit
INSIGHT
Read More
Cloud, automation, digitalization, artificial and cognitive intelligence — these investments are increasingly...
Digitization Trends and Audit Implications
INSIGHT
Read More
To continue thriving and succeeding together, and to continue producing a high-quality audit, KPMG is committed to providing ...
Health and Well-being: Providing for the Needs of Our People
INSIGHT
Read More
Accelerating ESG audit innovation to meet ever-evolving expectations from stakeholders.
The Future of ESG
INSIGHT
Read More
Accelerating ESG audit innovation to meet ever-evolving expectations from stakeholders.
The Future of ESG
INSIGHT
Audit Quality Report Update
Audit Quality Report Update
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KPMG LLP announces the integration of ...
KPMG Announces AI Integration into Global Smart Audit Platform, KPMG Clara
News
Read More
US survey results – Financial reporting leaders’ AI expectations for their companies and external auditors.
AI in financial reporting and audit: Navigating the new era
INSIGHT
Read More
Opportunities, Risks, and Investments Trends to Enhance Trust through Technology.
Navigating the AI Era In Financial Reporting
News
Read More
KPMG US Announces Formation of Independent Audit Quality Advisory Committee to Build on the Success of Quality Initiatives
News
Read More
Nearly 90% of leaders across US-based private companies and those who recently went public show strong optimism about ...
2024 Private Company Disruptors Survey
News
Read More
AI is transforming the landscape of financial reporting and KPMG is transforming the audit with AI.
Transforming the Audit Experience with AI
INSIGHT
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AI is transforming the landscape of financial reporting and KPMG is transforming the audit with AI.
Transforming the Audit Experience with AI
INSIGHT
Read More
KPMG LLP announces the integration of...
KPMG Announces AI Integration into Global Smart Audit Platform, KPMG Clara
News
Read More
US survey results – Financial reporting leaders’ AI expectations for their companies and external auditors.
AI in financial reporting and audit: Navigating the new era
INSIGHT
Read More
Opportunities, Risks, and Investments Trends to Enhance Trust through Technology.
Navigating the AI Era In Financial Reporting
News
Read More
KPMG US Announces Formation of Independent Audit Quality Advisory Committee to Build on the Success of Quality Initiatives
News
Read More
Nearly 90% of leaders across US-based private companies and those who recently went public show strong optimism about ...
2024 Private Company Disruptors Survey
News