Welcome to our new Audit Quality Report. Going forward, instead of just a moment-in-time annual report, we will provide ongoing updates on the actions we are taking to promote audit quality. Our goal is to inform all of our stakeholders, in real-time, about how our strategy and investments deliver audits that are consistently executed within a strong system of quality control and aligned to professional standards.
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KPMG Audit
KPMG Transparency Reports
of CEOs report they are executing an aggressive digital investment strategy to secure first-mover or fast-follower status
78%
Market complexities are rising
STATISTICS
of CEOs report they are likely to undertake acquisitions that will significantly impact their organizations
56%
Market complexities are rising
STATISTICS
of U.S. CEOs believe there will be
a recession in the next 12 months
91%
Today, that need to anticipate the unexpected underscores every C-suite, board, and audit committee conversation. As our recent CEO Outlook showed, 91%
of U.S. CEOs believe there will be a recession in the next 12-months and that
it won’t be short-lived.
Market complexities are rising
STATISTICS
Read More
At KPMG, a better audit experience starts...
Delivering an Innovative
and Reliable Audit in an
Age of Disruption
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
~300 client experience sessions
~2,000 auditors trained on data extraction and transformation technology
4M+ executions of advanced D&A and automated solutions
1,000+ Technology Assurance professionals in our audit practices
11,000 deployments of advanced
D&A and automation solutions across our portfolio
client experience sessions
~300
auditors trained on data extraction and transformation technology
~2,000
executions of advanced D&A and automated solutions
4M +
Technology Assurance professionals in our audit practices
1,000 +
deployments of advanced D&A and automation solutions across our portfolio
11,000 +
Our suite of technology meets you on your IT journey for a data-driven audit
1.2M+ audit hours conducted
by Advisory and Tax partners
and professionals
>30% increase in audit hours
executed by our Center for Audit Solutions since 2020
>99.7% of audits without restatements
103,000 milestones monitored
100% pre-issuance reviews of public integrated audits in 2022
of audits without restatements
>99.7%
milestones monitored
103,000
audit hours conducted by Advisory and Tax partners and professionals
1.2M +
increase in audit hours executed by our Center for Audit Solutions since 2020
>30%
Our system of quality control sustainably enhances quality
62% of professionals are from underrepresented groups
33,000+ Firm-wide ESG training hours
123,000 hours of learning on D&A and enabling technologies
17,000 Tech Stars awarded
>60% increase in professionals in
KPMG's Center for Audit Solutions
Firm-wide ESG training hours
33,000 +
hours of learning on D&A and enabling technologies
123,000
Tech Stars awarded
17,000
increase in professionals
in KPMG's Center
for Audit Solutions
>60%
Quality comes to life through our people
Explore the numbers
See how...
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud.
Lorem ipsum
INSIGHT
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud.
Lorem ipsum
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
automated industry routines developed
60 +
We’ve developed and deployed 60+ automated industry routines, along with cross-industry routines to analyze expenses and revenues. With these capabilities, we can focus on the risks that matter, rather than selecting transactions randomly using traditional sampling techniques.
Going deeper with
transaction scoring, including new revenue, expense, and industry-specific routines
STATISTICS
KPMG is proud to provide opportunities and enable progress needed to build a skilled and diverse workforce.
Breaking down barriers to the CPA
INSIGHT
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
HBCUs included in MADA expansion this year
4
KPMG’s Master of Accounting with Data
and Analytics (MADA) Program prepares students to hit the ground running in today’s data-driven accounting environment by providing specialized skills for practical use of the latest analytics technology needed. This year, MADA expanded to new schools, including four Historically Black Colleges
and Universities.
Recruiting and developing
a diverse workforce
STATISTICS
Through a multi-million-dollar investment in a new KPMG program called CPA Kickstart, we will now pay Audit professionals to
study for the CPA exam with enhanced resources to improve outcomes. Students from non-traditional schools do not
receive the same support for passing the CPA exam, disproportionately impacting people of color.
Recruiting and developing
a diverse workforce
STATISTICS
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud.
Lorem ipsum
INSIGHT
From top-down to bottom-up, quality is...
Embedding Quality and Continuous Improvement throughout the Audit
INSIGHT
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud.
Lorem ipsum
INSIGHT
Cloud, automation, digitalization,
artificial and cognitive intelligence — these investments are increasingly...
Digitization Trends and
Audit Implications
INSIGHT
Learn more about our new approach.
of professionals are from underrepresented groups
62%
pre-issuance reviews
of public integrated
audits in 2022
100%
routines have been developed to pre-process data for deeper risk assessments
>3,000
To us, delivering a data-driven audit
means efficiently extracting and analyzing transaction-level data to fine-tune risk assessments and glean new audit insights
to corroborate expectations, reveal outliers, streamline audit procedures, and more. Importantly, all this work is delivered
via KPMG Clara — our global smart audit platform that brings all of our
work together.
What we’re doing
STATISTICS
runs of advanced D&A and
automated solutions
4M +
To us, delivering a data-driven audit
means efficiently extracting and analyzing transaction-level data to fine-tune risk assessments and glean new audit insights
to corroborate expectations, reveal outliers, streamline audit procedures, and more. Importantly, all this work is delivered
via KPMG Clara — our global smart audit platform that brings all of our
work together.
What we’re doing
STATISTICS
new hires in its first year, 50% of whom
are people of color
225
of people in our Audit practice had the opportunity to come to KPMG Lakehouse
100%
In fact, during FY22, every single person in our Audit practice had the opportunity to come to our learning and innovation center and cultural home, KPMG Lakehouse, to participate in interactive and engaging learning programs, innovate on new ideas, and connect with colleagues.
Learning and development
is also an opportunity to make connections
STATISTICS
pre-issuance reviews of public
integrated audits in 2022
100%
Pre-issuance reviews are part of our monitoring procedures and our internal inspection program where a group of
highly skilled professionals review our
in-process audits.
Quality is embedded in everything we do
STATISTICS
data points
100,000
We monitor this work, alerting teams to progress on 12 key metrics every month for all 700+ of our public integrated audits. These metrics include resourcing, progress, partner reviews, and more. In total, progress for last year’s teams was scored on 100,000 data points.
Our process standardizes, centralizes, and automates
key parts of the audit
STATISTICS
Chair and CEO,
KPMG US
Paul Knopp
Vice Chair — Audit,
KPMG US
Scott Flynn
nearly double last year’s number —
report that ESG programs are improving their financial performance
70%
With formalized ESG reporting on the horizon, public companies and auditors are gearing up to disclose climate-related risks. Voluntary ESG reporting is also on the rise, with the top public 100 U.S. companies by revenue already reporting on sustainability in some form.
ESG Reporting
STATISTICS
Most executives agree that smart analytics (62%), artificial intelligence (56%) and cloud computing and storage (74%) are current must-have technologies for their internal finance function.
Must have technologies
currently
STATISTICS
Smart analytics
Artificial intelligence
Cloud computing and storage
Business process automation Robotic process automation Process mining technology
Executives also agree that business
process automation (43%), robotic process automation (48%) and process mining technology (42%) are expected to become must-haves within two years.
Must have technologies
within two years
STATISTICS
Blockchain
Edge computing
Looking ahead, half of the executives surveyed (51%) believe blockchain will play a vital role in their finance function in the next three to five years, and more than a third (36%) expect edge computing to gain importance in this same time frame.
Must have technologies
within three to five years
STATISTICS
~300 client experience sessions
at KPMG Audit Ignition Centers and continuous improvement joint client workshops since 2020. We work with management to accelerate the use of data and technology to drive insights that shape financial and sustainability reporting.
~2,000 auditors trained on data extraction and transformation technology
Your audit is data-driven when we can securely access and transform your data. Advanced solutions work across ERP systems to extract
and then transform data to power
risk assessments.
4M+ executions of advanced D&A
and automated solutions
More than 4 million executions of bots, document investigation solutions, and D&A
and automation routines. We deploy and
deeply engage with our suite of fit-for-purpose technology to meet you on your IT journey
for a tech-enabled audit.
1,000+ Technology Assurance professionals in our audit practices
Digitalization is shaping financial and sustainability reporting. Last year, we integrated Technology Assurance into our Audit practice to more seamlessly innovate, cross-train, and deliver quality audits.
11,000 deployments of advanced
D&A and automation solutions across our portfolio
Data extraction, analysis and visualization.
Bots. Automated routines. Document investigation solutions. Whether a small or
large audit, we are increasing deployment of advanced D&A and automation solutions
on audits to enhance quality.
client experience sessions
~300
auditors trained on data extraction and transformation technology
~2,000
executions of advanced D&A and automated solutions
4M +
Technology Assurance professionals in our audit practices
1,000 +
deployments of advanced D&A and automation solutions across our portfolio
11,000 +
Our suite of technology meets you on your IT journey for a data-driven audit
1.2M+ audit hours conducted
by Advisory and Tax partners
and professionals
Our multi-disciplinary model brings specialists across our Advisory and Tax practices to
deliver deep insights through and beyond the audit. This past year, 1.2M+ hours on our
audits benefitted from those specialists.
>30% increase in audit hours
executed by our Center for Audit Solutions since 2020
Complementing core teams, increasing the use of centralized resources standardizes audits, enhancing quality. Last year, nearly 14% of hours were executed by CAS.
>99.7% of audits without restatements
While we take a holistic view of audit quality metrics, including Part I, Part II, and restatement trends, in recent years KPMG’s restatement rate is among the lowest in the Big 4.
103,000 milestones monitored
We review execution metrics monthly for all public company audits enabling pre-emptive actions. Tailored for your business, we scale best practices across our portfolio for a consistent and measurable experience.
100% pre-issuance reviews of public integrated audits in 2022
Building on the success of our multi-year transformation, we are conducting pre-issuance reviews for ALL of our public integrated audits, directly improving your audit and our overall system of quality control.
audit hours conducted by Advisory and Tax partners and professionals
1.2M +
increase in audit hours executed by our Center for Audit Solutions since 2020
>30%
of audits without restatements
>99.7%
milestones monitored
103,000
Our system of quality control sustainably enhances quality
62% of professionals are from underrepresented groups
Up 5% from 2020, your audit team benefits from more diversity of backgrounds, experience and skills, bringing highly-skilled professionals to further innovation, enhance quality, and better your experience.
33,000+ Firm-wide ESG training hours
From partnerships with NYU Stern Center for Sustainable Business to more detailed courses on specific standards, our ESG education curriculum upskills our professionals to meet your demands for ESG reporting today.
123,000 hours of learning on D&A and enabling technologies
Data focuses our audits on areas of higher
risk so we doubled learning and development hours in these areas and are investing
in a global 5-year $5 billion effort.
17,000 Tech Stars awarded
Through our new program, our auditors earn stars for investing in their personal career development, all anchored in demonstrating their ability to infuse your audit with fit-for-purpose technology.
>60% increase in professionals in
KPMG's Center for Audit Solutions
We expanded standardized services to audit teams, driving consistency. Two services
alone saved core audit engagement teams 70,000 hours, enabling them to focus on higher risk areas.
of professionals are from underrepresented groups
62%
Firm-wide ESG training hours
33,000 +
hours of learning on D&A and enabling technologies
123,000
Tech Stars awarded
17,000
increase in professionals
in KPMG's Center
for Audit Solutions
>60%
Quality comes to life through our people
Explore the numbers
See how...
pre-issuance reviews
of public integrated
audits in 2022
100%
Up 5% from 2020, your audit team benefits from more diversity of backgrounds, experience and skills, bringing highly-skilled professionals to further innovation, enhance quality, and better your experience.
From partnerships with NYU Stern
Center for Sustainable Business to more detailed courses on specific standards,
our ESG education curriculum upskills our professionals to meet your demands
for ESG reporting today.
Data focuses our audits on areas of higher
risk so we doubled learning and development hours in these areas and are investing
in a global 5-year $5 billion effort.
Through our new program, our auditors earn stars for investing in their personal career development, all anchored in demonstrating their ability to infuse your audit with fit-for-purpose technology.
We expanded standardized services to audit teams, driving consistency. Two services
alone saved core audit engagement teams 70,000 hours, enabling them to focus on higher risk areas.
While we take a holistic view of audit quality metrics, including Part I, Part II,
and restatement trends, in recent years KPMG’s restatement rate is among
the lowest in the Big 4.
We review execution metrics monthly for all public company audits enabling pre-emptive actions. Tailored for your business, we
scale best practices across our portfolio for
a consistent and measurable experience.
Building on the success of our multi-year transformation, we are conducting pre-issuance reviews for ALL of our public integrated audits, directly improving your audit and our overall system of
quality control.
Our multi-disciplinary model brings specialists across our Advisory and Tax practices to deliver deep insights through and beyond the audit. This past year,
1.2M+ hours on our audits benefitted
from those specialists.
Complementing core teams, increasing the use of centralized resources standardizes audits, enhancing quality. Last year, nearly 14% of hours were executed by CAS.
at KPMG Audit Ignition Centers and continuous improvement joint client workshops
since 2020. We work with management to accelerate the use of data and technology
to drive insights that shape financial and sustainability reporting.
More than 4 million executions of bots, document investigation solutions, and D&A and automation routines. We deploy and deeply engage with our suite of fit-for-purpose technology to meet you on your
IT journey for a tech-enabled audit.
Digitalization is shaping financial and sustainability reporting. Last year, we integrated Technology Assurance into our Audit practice to more seamlessly innovate, cross-train, and deliver quality audits.
Data extraction, analysis and visualization.
Bots. Automated routines. Document investigation solutions. Whether a small or
large audit, we are increasing deployment of advanced D&A and automation solutions
on audits to enhance quality.
Your audit is data-driven when we can securely access and transform your data. Advanced solutions work across ERP
systems to extract and then transform
data to power risk assessments.
Approach
Read More
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam.
Lorem ipsum
INSIGHT
of CEOs report they are likely to undertake acquisitions that will significantly impact their organizations
56%
Market complexities are rising
STATISTICS
of CEOs report they are executing an aggressive digital investment strategy to secure first-mover or fast-follower status
78%
Market complexities are rising
STATISTICS
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.
A better audit experience starts
with a different approach.
Future of Audit
Cloud, automation, digitalization,
artificial and cognitive intelligence — these investments are increasingly...
Digitization Trends and
Audit Implications
INSIGHT
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam.
Lorem ipsum
INSIGHT
nearly double last year’s number —
report that ESG programs are improving their financial performance
70%
Today, that need to anticipate the unexpected underscores every one of my C-suite, board, and audit committee conversations. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession in the next 12 months and that it won’t be short-lived.
ESG Reporting
STATISTICS
Today, that need to anticipate the unexpected underscores every one of my C-suite, board, and audit committee conversations. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession in the next 12 months and that it won’t be short-lived.
Must have technologies
currently
STATISTICS
Smart analytics
Artificial intelligence
Cloud computing and storage
Business process automation Robotic process automation Process mining technology
Most executives agree that smart analytics (62%), artificial intelligence
(56%) and cloud computing and
storage (74%) are current must-have technologies for their internal
finance function.
Must have technologies
within two years
STATISTICS
Blockchain
Edge computing
Most executives agree that smart analytics (62%), artificial intelligence
(56%) and cloud computing and
storage (74%) are current must-have technologies for their internal
finance function.
Must have technologies
within three to five years
STATISTICS
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.
A better audit experience starts
with a different approach.
Technology
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
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam.
Lorem ipsum
INSIGHT
automated industry routines developed
60 +
Today, that need to anticipate the unexpected underscores every one of my C-suite, board, and audit committee conversations. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession in the next 12 months and that it won’t be short-lived.
Going deeper with
transaction scoring, including new revenue, expense, and industry-specific routines
STATISTICS
routines have been developed to pre-process data for deeper risk assessments
>3,000
Today, that need to anticipate the unexpected underscores every one of my C-suite, board, and audit committee conversations. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession in the next 12 months and that it won’t be short-lived.
What we’re doing
STATISTICS
runs of advanced D&A and
automated solutions
4M +
To us, delivering a data-driven audit means efficiently extracting and analyzing transaction-level data to fine-tune risk assessments and glean new audit insights to corroborate expectations, reveal outliers, streamline audit procedures,
and more. Importantly, all this work is delivered
via KPMG Clara — our global smart audit platform that brings all of
our work together.
What we’re doing
STATISTICS
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.
A better audit experience starts
with a different approach.
People
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
Quality
KPMG is proud to provide opportunities and enable progress needed to build a skilled and diverse workforce.
Breaking down barriers to the CPA
INSIGHT
The people you work with can make all the difference, not only in your day, but also ...
Empowering Our People Promotes Audit Quality
INSIGHT
HBCUs included in MADA expansion this year
4
Today, that need to anticipate the unexpected underscores every one of my C-suite, board, and audit committee conversations. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession in the next 12 months and that it won’t be short-lived.
Recruiting and developing
a diverse workforce
STATISTICS
new hires in its first year, 50% of whom
are people of color
225
KPMG’s Master of Accounting with Data and Analytics (MADA) Program prepares students to hit the ground running in today’s data-driven accounting environment by providing specialized skills for practical use of the latest analytics technology needed. This year, MADA expanded to new schools, including four Historically Black Colleges and Universities.
Recruiting and developing
a diverse workforce
STATISTICS
of people in our Audit practice had the opportunity to come to KPMG Lakehouse
100%
Through a multi-million-dollar investment in a new KPMG program called CPA Kickstart, we will now pay Audit professionals
to study for the CPA exam with enhanced resources to improve outcomes. Students from non-traditional schools do not receive the same support for passing the CPA exam, disproportionately impacting people
of color.
Learning and development is
also an opportunity to make connections
STATISTICS
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam.
Lorem ipsum
INSIGHT
From top-down to bottom-up, quality is...
Embedding Quality and Continuous Improvement throughout the Audit
INSIGHT
pre-issuance reviews of public integrated audits in 2022
100%
Today, that need to anticipate the unexpected underscores every one of my C-suite, board, and audit committee conversations. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession in the next 12 months and that it won’t be short-lived.
Quality is embedded in everything we do
STATISTICS
data points
100,000
Pre-issuance reviews are part of our monitoring procedures and our internal inspection program where a group of highly skilled professionals review our
in-process audits.
Our process standardizes, centralizes, and automates key parts of the audit
STATISTICS
The foundations of quality
The foundations
of quality
Today, that need to anticipate the unexpected underscores every C-suite, board, and audit committee conversation. As our recent CEO Outlook showed, 91%
of U.S. CEOs believe there will be a recession in the next 12-months and that
it won’t be short-lived.
Today, that need to anticipate the unexpected underscores every C-suite, board, and audit committee conversation. As our recent CEO Outlook showed, 91%
of U.S. CEOs believe there will be a recession in the next 12-months and that
it won’t be short-lived.
Download report
Download report
Today, that need to anticipate the unexpected underscores every
C-suite, board, and audit committee conversation. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession
in the next 12-months and that it
won’t be short-lived.
Today, that need to anticipate the unexpected underscores every
C-suite, board, and audit committee conversation. As our recent CEO Outlook showed, 91% of U.S. CEOs believe there will be a recession
in the next 12-months and that it
won’t be short-lived.
Read More
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Download report
Download report
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
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
To continue thriving and succeeding together, and to continue producing a high-quality audit, KPMG is committed to ...
Health and Well-being: Providing for the Needs of Our People
INSIGHT