KPMG launches its first-ever dynamic Audit Quality Report to meet client and market demand

NEW YORK, NY - KPMG Audit has modernized its Audit Quality Report (AQR), transitioning it from a static document, released once a year, to a dynamic, data-driven platform that will be updated to respond to market developments.

“Through our revamped AQR, we will better engage all our stakeholders — clients, boards, talent and more — to effectively communicate how we enhance and sustain audit quality and shape the future of audit,” said Scott Flynn, KPMG Vice Chair – Audit. “This new platform will enable our partners and professionals to have more seamless, organic and timely discussions of audit quality initiatives that address dynamics happening in the market.”

KPMG is the first Big Four firm to buck the trend and truly modernize its Audit Quality Report. The new platform features the full report, a dynamic data dashboard that will be updated frequently, and blogs and data graphics aligned with the five pillars of our Audit Story.

Key highlights from the 2022 Audit Quality Report:

KPMG Audit’s nearly 10,000-strong Next Gen Auditors are developing new skills and bringing diverse perspectives to engagements. Most Audit professionals (62%) are from underrepresented groups, a 5% increase from 2020.
- KPMG Audit added four Historically Black Colleges and Universities to the KPMG Master of Accounting with Data and Analytics program. And through a multimillion investment in its KPMG CPA Kickstart program, 225 people, half of whom are people of color, were paid to study for the CPA exam with enhanced resources to improve outcomes.
- Year over year, KPMG Audit doubled its learning and development hours in technology in FY2022, with 123,000 hours focused on technology, data and analytics. The firm also invested 33,000 hours in environmental, social and governance learning and development across Audit, Tax and Advisory.

KPMG Audit, including its Tech Assurance team, continues to enhance the use of technology for a more data-driven and automated audit.
- Last year, KPMG Audit deployed advanced data & analytic and automation solutions 11,000+ times across its portfolio, with more than four million executions of those solutions.
- All of KPMG Audit’s new and experienced Tech Assurance professionals — totaling more than 1,000 people — have been upskilled on integrated controls and technology training.

Through KPMG Audit’s Engagement Management Lifecycle program, the practice is addressing the root cause of recent quality challenges while delivering a better and more consistent experience for our auditors.
- KPMG Audit pulled work forward, reducing hours for the core engagement team in traditional busy season while standardizing and centralizing more activities.
- The Audit practice monitored 100,000+ key milestones through monthly reviews of its public clients to help teams execute their audit plans.
- This work has enabled the Audit practice to conduct pre-issuance reviews of all public integrated audits for the first time in its history.

The practice continues to draw strength from KPMG Audit’s service delivery model and the firm’s multidisciplinary model.
- More than 1.2 million audit hours involved professionals from the Tax and Advisory practices.
- KPMG Audit’s expanding Center for Audit Solutions and Global Delivery Center were responsible for 30% more audit hours compared with 2020. This is a direct result of the practice’s ability to standardize work for a more consistent audit approach across its portfolio.

“We emphasize that audit quality is beyond compliance,” said Christian Peo, KPMG National Managing Partner – Audit. “Our Audit Quality Report demonstrates how we have made changes at the individual, engagement team and national level to build quality into each and every step of our audit approach.”

“Most importantly, we know our people drive audit quality, and the changes highlighted in our Audit Quality Report directly improve the audit experience for our people,” Flynn emphasized. “This mindset is central to the long-term success of our practice in delivering quality audits and growing our practice.”

Click here to take a first look at KPMG’s revamped AQR.

About KPMG LLP

KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 143 countries and territories and has more than 265,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.