By Tim Walsh, National Managing Partner, Audit Operations, Heather Paquette, Technology Assurance Leader - Audit, and Lou Trebino, Chief Technology Officer - Audit
KPMG U.S. brings technology and methodology together seamlessly to enhance audit quality, delivering a risk-based and data-driven end-to-end audit through KPMG Clara, our global smart audit platform.
KPMG Clara illuminates the audit through a modernized approach that supports transparent communication throughout the audit cycle. It brings together client collaboration, data analytics, intelligent workflow and automation.
“Advanced technology must facilitate audit execution aligned with our methodology, and our technology advancements must propel methodology updates,” said Lou Trebino, KPMG U.S. Audit Chief Technology Officer. “This interplay accelerates the adoption of enabling technology and forges a deep connection between technology and audit quality.”
Our investment in technology supports more seamless extraction of data across technology environments, including a wide variety of cloud and on-premise ERPs. Our approach centers on understanding our clients’ businesses by leveraging data extraction and transformation capabilities to power data analytics that refine our risk assessment and deliver audit insights. Throughout this process, we evaluate an expansive set of transactions across the risk continuum to optimize the nature, timing and scope of substantive work.
You can learn more in our 2022 Audit Quality Report.
The Technology Assurance practice within Audit continues to invest in cyber, ESG strategies, blockchain, cloud and ERP control capabilities. It encompasses nearly 1,200 partners and professionals focused on IT audit, SOC attestations and real-time system assessments.
“We are reimagining how we think about technology assurance innovation within the context of audit transformation,” said Heather Paquette, KPMG U.S. National Technology Assurance Leader – Audit. “Integrating tech assurance capabilities across our practice and investing in the future will sustain audit quality amid rapid digitization.”
In addition to upskilling more than 3,500 auditors on new data extraction, transformation and analytic capabilities over the past two years, more than 1,500 Audit professionals have benefited from cross-training on IT audit skills as part of KPMG’s Next Gen Auditor program, which integrates technology into core competencies. These efforts to unlock new capabilities within the Audit practice are complemented by the rapid growth of KPMG's Center for Audit Solutions.
Technology is only one enabler of our engagement teams. KPMG’s Center for Audit Solutions is expanding our centers of excellence and global delivery centers to handle more manual tasks and to support our teams with specialists. In 2021, KPMG’s Center for Audit Solutions increased personnel by 500% to deploy 18 service offerings, including SOC 1 reviews, independence reviews, risk assessment procedures and tests of valuation assertion for investment securities. Further, specialists from the Center for Audit Solutions served more than 600 engagements.
“By centralizing certain audit procedures, we further standardize our processes and scale expertise to enhance audit quality,” said Tim Walsh, KPMG U.S. National Managing Partner, Audit Operations. “This effort goes beyond audit quality. It creates opportunities for our people to gain new skills.”