The capital market system is fundamental to the modern economy. External audits play a tremendous role in capital markets by providing assurance over comprehensive, comparable, and objective financial statements and a check-and-balance for procedural and regulatory compliance.
Audits are vital to the capital markets because through them companies receive funding to finance operations and invest in growth plans. Investors, individuals and organizations place trust in financial information that the capital market system produces.
In today's continually evolving capital market system, both investors and companies are increasingly focusing on the role corporations play, not only as profit generators, but as responsible corporate citizens. This growing call for fair reporting of parameters critical to climate, social justice, and community impact has incentivized and pushed capital markets to become more dynamic.
In light of these emerging trends in financial reporting, the role of audit has never been more important. Next-generation audit professionals will play an even greater role in strengthening financial reporting. Auditors' commitment to excellence, as demonstrated by our drive to continuously improving quality and efficiency while providing value, brings objectivity and expertise to the needs of diverse investors. As the audit profession continues to modernize, continuous audits—real-time, ongoing monitoring of information and provision of audit feedback—provide a timely and quality analysis of critical controls and enable the company's alignment with the pace of change in highly dynamic environments.
Today, audit facilitates the primary transition of financial reporting from a simple compilation of information to validated financial outcomes that investors can trust and rely upon. At KPMG, we are developing a suite of data driven technologies, applying innovative new tools, including KPMG Clara, our risk-based, data-driven global smart, web-based platform, as well as automation and data and analytic technologies so our NextGen auditors can transform the financial audit and promote the quality of work we perform for the capital markets and other stakeholders we serve.