《毕马威(KPMG):2022年透明度报告(英文版)(31页).pdf》由会员分享,可在线阅读,更多相关《毕马威(KPMG):2022年透明度报告(英文版)(31页).pdf(31页珍藏版)》请在三个皮匠报告上搜索。
1、Transparency Report 2022Our relentless focus on qualityKPMG I Report 2022 I 2 KPMG ValuesKPMG is committed to quality and service excellence in all that we do,helping to bring our best to clients and earning the publics trust through our actions and behaviors both professionally and personally.Our V
2、alues guide our behaviors day-to-day,informing how we act,the decisions we make,and how we work with each other,our clients,companies that we audit,and all of our stakeholders.Our Values are:Integrity:We do what is right.Excellence:We never stop learning and improving.Courage:We think and act boldly
3、.Together:We respect each other and draw strength from our differences.For Better:We do what matters.Transparency Report 2022 I 2 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and for
4、ewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and lea
5、dershipLiving our culture and ValuesIntroduction and forewordTransparency Report 2022 I 3The success of KPMG will always be linked to the quality of the services we provide to those that rely on us.For more than 150 years,quality has helped us become a trusted advisor to so many businesses and stake
6、holders across the world and the measure of our success will always be determined by the level of quality we provide no matter how the world turns.Providing high-quality services takes hard work,dedication and focus,as well as a continued investment in the people and technology that make it happen.W
7、ere making sure our incredible people who respect the KPMG Global Code of Conduct,live our Values and care about doing the right thing are with us every step of the way.These past few years have been challenging and our peoples remarkable resilience and deep commitment to providing services of the h
8、ighest quality to clients and stakeholders have been inspiring.And were helping them expand their careers,supporting their well-being,and building a safe and inclusive workplace.Their individual success is key to our collective growth.Thats why were transforming the audit experience for both our cli
9、ents and our teams by investing in KPMG Clara our cloud-based audit methodology and workflows platform.KPMG Clara delivers smarter,data-driven outcomes and deeper insights by blending some of the best technology with the best of our people.This leading technology helps our 90,000 plus audit professi
10、onals in 143 countries and territories deliver high-quality audits in a consistent way.We have also strengthened the consistency and robustness of our system of quality management across our global organization to comply with the new International Standard on Quality Management(ISQM 1).We believe co
11、nsistent execution and adherence to these requirements and the intent of the professional standards behind them will help drive higher quality across our organization for clients,large and small,no matter where they do business.And as stakeholders demand more accountability on environmental,social a
12、nd governance(ESG)issues,and regulators begin to require disclosures across new metrics,were investing more than 1.5 billion US dollars to make ESG the watermark running through KPMG.This has empowered our people,who can continue to tap into a diverse set of multidisciplinary skills and capabilities
13、 to help provide independent measurement,validation and quality assurance over ESG information as the standards evolve.Audit has been a fundamental part of our business for generations and,as the world changes dramatically,our fidelity to ensuring the successful working of the capital markets throug
14、h the robust quality of our audits has stayed constant.Its why weve been successful for 150 years,and the measure of our quality is the reason we expect to be here for 150 more.Well continue to work hard to provide you with quality and earn your trust.Thank you for trusting KPMG.Bill ThomasGlobal Ch
15、airman and CEO,KPMG InternationalLarry BradleyGlobal Head of Audit,KPMG InternationalTogether.For Better.Driving quality across all we do 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction
16、 and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance
17、 and leadershipLiving our culture and ValuesIntroduction and forewordTransparency Report 2022 I 4Audit quality is fundamental to maintaining public trust and is the key measure on which our professional reputation stands.We define“audit quality”as the outcome when audits are executed consistently,in
18、 line with the requirements and intent of applicable professional standards,within a strong system of quality management.All of our related activities are undertaken in an environment of the utmost level of objectivity,independence,ethics and integrity.Transparency Report 2022 I 4 2022 Copyright own
19、ed by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBe
20、ing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesIntroduction and forewordTransparency Report 2022 I 5Our global approach to delivering audit qualityWe continue
21、to invest significantly in audit quality across the KPMG global organization.We are building on our sound audit quality foundations,in terms of how KPMG firms are managed and how they execute their audit engagements.Across our global organization,we have strengthened the consistency and robustness o
22、f our system of quality management that enables compliance with the International Standard on Quality Management(ISQM 1),issued by the International Auditing and Assurance Standards Board(IAASB),which will take effect on 15 December 2022.We consider this a transformational and fundamental change for
23、 KPMG firms.Our globally consistent approach to ISQM 1 drives the robustness of our responses to the risks of achieving the quality objectives set out in the standard.For each component in the standard,we have established minimum required quality objectives,quality risks and responses for all KPMG f
24、irms.We have also established a risk assessment process required to be used by KPMG firms in identifying additional firm-specific quality objectives,quality risks,and responses and requirements for testing and evaluation of their system of quality management,together with guidance,tools and template
25、s to support the consistent implementation of ISQM 1 across KPMG firms.The new requirements apply to all KPMG firms within our global organization.The objective of this centralized approach is to drive the consistency,robustness and accountability of responses within KPMG firms processes.In preparat
26、ion for ISQM 1,we adopted a Global Quality Framework to outline how we deliver quality at KPMG,and how all KPMG professionals are accountable for its delivery.The principle of Perform quality engagements sits at the core along with our commitment to monitor and remediate our processes as necessary.O
27、ur Quality Drivers give clear direction to encourage the right behaviors in delivering audit quality.The Global Quality Framework also meets the International Code of Ethics for Professional Accountants(including International Independence Standards),issued by the International Ethics Standards Boar
28、d for Accountants(the IESBA Code of Ethics),which apply to professional services firms that perform audits of financial statements.While this KPMG International Transparency Report summarizes KPMGs approach to audit quality,it also applies across the organization,as many KPMG quality management proc
29、edures and processes are cross-functional and apply equally to other services offered by KPMG firms.In this report we use our Global Quality Framework to describe our approach to quality.Perform quality engagementsBe independent,objective andethicalRemediateMonitorAssociate with right clients and en
30、gagementsCommunicateeffectivelyAssess risksto qualityLive our culture and ValuesNurture diverse skilled teamsEmbrace digital technologyApplyexpertise and knowledge 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All ri
31、ghts reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring
32、 and remediationGovernance and leadershipLiving our culture and ValuesIntroduction and forewordTransparency Report 2022 I 6Our role in climate disclosures and ESG assuranceThe ESG agenda is rapidly changing how businesses assess their own purpose and performance.KPMG continues to support the reporti
33、ng of consistent,high-quality,decision-useful information for stakeholders,and we are committed to performing our work in full compliance with existing standards.We recognize,however,that some stakeholders want broader information than current standards require.As standards evolve to consider non-fi
34、nancial reporting,we fully support the International Sustainability Standards Board(ISSB)as it develops global corporate reporting standards,which are an essential part of the system change required to address the needs of global capital markets and broader society.KPMG is committed to fulfilling ou
35、r public interest role in providing robust assurance that can benefit investors and other stakeholders.We believe the same level of professionalism,quality,consistency and trust should apply to ESG disclosures as to financial data.Thats why KPMG firms globally are making significant investments in p
36、utting ESG at the heart of the organization.During 2022,as part of our commitments to meeting both the public interest and market demands,we appointed a Global Head of ESG Assurance,launched an online sustainability reporting resource center and continued to provide guidance on the financial reporti
37、ng impacts of climate change.Our commitment to audit quality during significant external eventsSignificant external events,such as the conflict in Ukraine,the COVID-19 pandemic and the emerging impacts of climate change,have contributed to rising inflation and interest rates,supply chain disruption
38、and increased global economic uncertainty.Matters such as going concern,asset impairments and valuations will likely require careful judgment as organizations deal with elevated uncertainty and market volatility.KPMG firms role as auditors is to evaluate these judgments.We maintain an online financi
39、al reporting resource center to assist financial statement preparers and other stakeholders in understanding the potential accounting and disclosure implications of significant external events.KPMG International issues extensive guidance to assist engagement teams in addressing the financial reporti
40、ng,auditing and reporting-related matters arising from these external events,addressing the potential implications for matters including going concern,asset impairments,valuations and related disclosures,materiality,risk assessment,group audits,subsequent events,audit evidence,and communications wit
41、h those charged with governance.KPMG Internationals guidance is continually updated as new significant accounting,auditing and reporting issues emerge.KPMG is a technology-enabled organization,with technical accounting and auditing resources,guidance,platforms and tools available electronically,whic
42、h enables our engagement teams to effectively operate in office and remote-working environments.Operating in different regulatory environmentsThe regulatory requirements under which KPMG operates differ across jurisdictions,and KPMG firms are committed to operating according to the laws and regulato
43、ry environment of their jurisdiction.KPMG is supportive of international initiatives to promote greater consistency in regulatory requirements for the capital markets,while recognizing that different jurisdictions will have different requirements.Again,we recognize that we serve the public interest.
44、2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients
45、 and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesIntroduction and forewordTransparency Report 2022 I 7Living our culture and ValuesIts not just
46、 what we do at KPMG that matters we also pay attention to how we do it.Our Values are our core beliefs,guiding and unifying our actions and behaviors.Shared across every level and in every country,jurisdiction and territory in which we operate,they are the foundation of our unique culture.Fostering
47、the right culture,starting with tone at the topAs a global organization,we recognize that strong and clear leadership from KPMG International is critical to set the tone at the top and provides the blueprint for accountability to all KPMG firms.Our global leadership,working with regional and KPMG fi
48、rm leadership,plays a critical role in establishing our commitment to quality and the highest standards of professional excellence.A culture based on integrity,accountability,quality,objectivity,independence and ethics is essential in an organization that carries out audits and other services on whi
49、ch stakeholders rely.KPMG International has taken steps to strengthen our governance,with a focus on accountability for quality.All KPMG firms are committed to a common set of Values,standards and service-quality expectations.KPMGs global leadership drives an awareness that everyone across the organ
50、ization who is involved in performing an audit,or any client engagement across tax and advisory,has a responsibility for quality and a part to play.Clear Values and a strong Code of ConductOur Values lie at the heart of the way we do things.To do the right thing,the right way,at the right time.Alway
51、s.They form the foundation of a resilient culture ready to meet challenges with integrity,so we never lose sight of our principal responsibility to protect the public interest.And they propel us forward through our work and the example we set as we inspire confidence and empower change throughout th
52、e world.Outlined in KPMGs Global Code of Conduct(“the Code”)are the responsibilities all KPMG personnel have to each other,the public and our clients.It shows how our Values inspire our greatest aspirations and guide our behaviors and actions.It defines what it means to work at and be a part of KPMG
53、,as well as our individual and collective responsibilities.Everyone at KPMG is held accountable for behavior consistent with the Code and are required to confirm their compliance with it.They are all required to take annual training that covers the Code.We are committed to holding ourselves accounta
54、ble for behaving in a way that is consistent with the Code.Individuals are encouraged to speak up if they see something that makes them uncomfortable or is not in compliance with the Code or our Values.Everyone at KPMG is required to report any activity that could potentially be illegal or in violat
55、ion of our Values,our policies,applicable laws,regulations or professional standards.To safeguard this principle of holding each other accountable,each KPMG firm is required to establish,communicate and maintain clearly defined channels to allow KPMG personnel and third parties to make inquiries abo
56、ut,raise concerns in relation to,provide feedback on,and notify reportable matters without fear of reprisal in accordance with applicable laws or regulations.The KPMG International hotline is a further mechanism for KPMG personnel,clients and other third parties to confidentially report concerns the
57、y have relating to certain areas of activity by KPMG International,activities of KPMG firms or KPMG personnel.We take reports received by the International hotline seriously,and for each of them we respond,and take appropriate action.2022 Copyright owned by one or more of the KPMG International enti
58、ties.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qu
59、alityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesLiving our culture and ValuesTransparency Report 2022 I 8All KPMG firms and personnel are prohibited from retaliating against individuals who have the courage t
60、o speak up in good faith.Retaliation is a serious violation of the Code,and any person who takes retaliatory action will be subject to their firms disciplinary policy.In addition to the processes outlined above,the Global People Survey provides KPMG International leadership with insights related to
61、upholding our Values.Consistent quality and risk management policiesKPMG International has quality and risk management policies that are included in the Global Quality&Risk Management Manual(GQ&RM Manual)and apply to all KPMG firms and KPMG personnel.These policies and associated procedures are desi
62、gned to assist KPMG firms in complying with relevant professional standards and regulatory and legal requirements,and have recently been updated to reflect the requirements of ISQM 1.The IESBA Code of Ethics applies to all of the services KPMG firms provide.KPMG firms are required to implement KPMG
63、Internationals policies and procedures and adopt their own additional policies and procedures that are designed to address rules and standards applicable to their own jurisdictions as well as applicable legal and regulatory requirements.Our global leadership takes responsibility for audit qualityKPM
64、Gs global leadership plays a critical role in driving the quality agenda for the organization.In respect to audit quality,our Global Head of Audit and Global Head of Audit Quality provide reports to the Global Audit Quality Committee of the Global Board and have responsibility for oversight of audit
65、 quality across KPMG for KPMG International.Certain global steering groups drive the execution of the quality strategy.Each of these global groups have their specific areas of focus,and they work closely with one another on quality matters,along with regional and KPMG firm leadership,to:Establish an
66、d ensure communication of appropriate audit,quality and risk management policies;Establish and support effective and efficient processes to promote audit quality;Promote and support the implementation of strategy in KPMG firms audit functions,including standards of audit quality;and Assess and monit
67、or audit engagement quality,including issues arising from quality performance and regulatory reviews,and focus on best practices to increase audit quality.The overall governance structure of KPMG International and further detail on global leadership groups are provided in the Governance and leadersh
68、ip section of this report.Responsibilities and obligations of KPMG firmsKPMG firms membership agreements with KPMG International require they comply with KPMG Internationals policies,procedures and regulations,including quality standards governing how they operate and how they provide services to cl
69、ients to compete effectively.This includes having a firm structure that ensures continuity and stability,and being able to adopt global strategies,share resources(incoming and outgoing),service multinational clients,manage risk,and deploy global methodologies and tools.Each KPMG firm takes responsib
70、ility for its management and the quality of its work and commits to a common set of KPMG Values.A firms status as a KPMG member firm and its participation in the KPMG organization may be terminated if,among other things,it has not complied with the policies,procedures and regulations set by KPMG Int
71、ernational or any of its other obligations owed to KPMG International.Further details of KPMG Internationals governance structure can be found in the Governance and leadership section of this report.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities pr
72、ovide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerfo
73、rming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesLiving our culture and ValuesTransparency Report 2022 I 9Applying expertise and knowledgeWe are committed to continuing to build on our technical expertise and knowledge recognizing its fundament
74、al role in delivering quality audits.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled te
75、amsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesApplying expertise and knowledgeConsistent audit and assu
76、rance methodology and toolsThe KPMG audit and assurance methodology,tools and guidance,which enable a consistent approach to planning,performing and documenting audit procedures over key accounting processes,are:Globally consistent and fully compliant with the applicable standards,including Internat
77、ional Standards on Auditing(ISA),Public Company Accounting Oversight Board(PCAOB)and the American Institute of CPAs(AICPA)and are supplemented to comply with local auditing standards and regulatory or statutory requirements by KPMG firms;Inclusive of KPMG methodology interpretations that drive consi
78、stency in areas where the applicable standards are not prescriptive in the approach to be followed;Centered on identifying risk,focusing on risks of material misstatements and the necessary audit response;Made available to all KPMG audit and assurance professionals and required to be used,where nece
79、ssary;Applied even where local auditing standards may be less demanding than the ISAs;and Based on the requirements of the International Standard on Assurance Engagements(ISAE)and aligned to assurance products in response to the growth of ESG reporting.The KPMG audit methodology is set out in the KP
80、MG Audit Manual(for use with eAudIT)and the KPMG Audit Execution Guide(for use with the KPMG Clara workflows)and includes KPMG interpretation of how to apply ISAs,which we believe enhance audit quality.The KPMG Assurance Manuals provide the requirements and guidance for a consistent approach to perf
81、orming assurance engagements in accordance with the ISAE 3000,Assurance Engagements Other than Audits or Reviews of Historical Financial Information.The audit and assurance methodologies emphasize applying appropriate professional skepticism in the execution of procedures and require compliance with
82、 relevant ethical requirements,including independence.Enhancements to the audit and assurance methodologies,guidance and tools are made regularly to maintain compliance with the applicable standards and address emerging auditing and assurance areas of focus and audit quality results(internal and ext
83、ernal).For example,the current focus on ESG assurance is driving updates to our assurance methodologies,tools and guidance.KPMG firms may add local requirements and/or guidance to the globally prescribed minimum requirements in the KPMG Audit Manual,the KPMG Audit Execution Guide and the KPMG Assura
84、nce Manuals to comply with additional professional,legal or regulatory requirements.Access to specialist networksSpecialist expertise is an increasingly important part of the modern audit.KPMG firm engagement teams have access to a network of KPMG specialists either within their firm or in other KPM
85、G firms.These specialists receive the training they need to ensure they have the competencies,capabilities and objectivity to appropriately fulfil their role on KPMG audits.The need for specialists to be assigned to an audit engagement in areas such as information technology,tax,treasury,actuarial,f
86、orensic and valuations is considered as part of the audit engagement acceptance and continuance process,as well as during the planning and conduct of the engagement.Transparency Report 2022 I 10Embracing digital technologyAt KPMG,we are committed to serving the public interest and creating value thr
87、ough continuous innovation.We are transforming the audit experience for our professionals and clients by leveraging the data and insights of leading technologies and enhancing audit quality by increasing our ability to focus on the issues that matter.Intelligent,standards-driven audit workflowsKPMG
88、Clara is our smart and intuitive technology platform that is driving globally consistent audit execution across all KPMG firms.As a scalable,cloud-based platform,it enables the enhanced audit methodology through data-enabled workflows.The platform integrates new and emerging technologies,with advanc
89、ed capabilities that leverage data science,audit automation and data visualization.Evolving our audit workflowsWe recognize that to deliver quality audits,we need to continually evolve and develop our technology solutions to keep pace with todays digital world.That is why we reimagined our audit pla
90、tform,workflows and methodology to provide enhanced consistency and support to our audit engagement teams,deliver detailed insights,and future-proof our systems for the expected continued development of new technologies,such as robotic process automation,machine learning and cognitive technologies.T
91、he release of the KPMG Clara workflows and revised audit methodology is an important milestone in KPMGs journey to innovate,digitalize and transform the audit experience.It is a significant investment that underlines our commitment to audit quality,consistency and innovation.KPMG ClaraThe digital au
92、dit is increasingly integral to how KPMG firms perform quality audits and interact with clients.Policies and guidance are in place to establish and maintain appropriate processes and controls regarding the development,evaluation and testing,deployment and support of technology in KPMG audits.KPMG Cl
93、ara is helping auditors see meaningful patterns across a business,whether conducting risk assessment,tracing transactions through a complex revenue process,or simply adding up the accounts.Examples of current capabilities include:Analysis of account balances and journal entry data;Automation of peri
94、od-on-period balances comparison and time series evolution information;Analysis of sub-ledger,transactional data over certain business processes and accounts;and Integration(where applicable)with industry-specific digital procedures and solutions.Our vision of the futureKPMG Clara was developed to b
95、e a foundational technology platform for KPMG to deliver audit quality.It delivers this by being the base technology providing new capabilities in a globally consistent way,enabling the audit workflows and providing a fully digital experience for KPMG audit professionals.The KPMG Clara platform evol
96、ves as technologies such as artificial intelligence,blockchain and cognitive capabilities transform how audits are delivered.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and foreword
97、Applying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadersh
98、ipLiving our culture and ValuesEmbracing digital technologyTransparency Report 2022 I 11MethodologyDataWorkflowsLearningAnticipate data typesGuide teams in usageRevised and updated user interfaceEnable the end userFlexible and modular to support classroom and micro-learnings On demandSearchableBette
99、r visualizationwith contextClearUnderstandableGlobally consistentKnowledgeClientexperienceEnhanced usabilityand tech enabledRichcontentLeverageinnovationsKPMGClaraworkflowsKPMG Clara workflowsOur previous platform,eAudIT,is being replaced with new workflows embedded with our revised audit methodolog
100、y and enabled by the KPMG Clara smart audit platform.Phased full deployment of the KPMG Clara workflows(with the exception of very small and less complex national audits),commenced globally in 2020 with planned completion of global transition for the 2022 fiscal period-end audits.Global transition f
101、or very small and less complex national audits,leveraging enhanced scaling capability,has commenced in 2022 and will be completed by 2023.The web-enabled KPMG Clara workflows guide audit teams through a series of steps in a logical sequence aligned to the applicable professional auditing standards w
102、ith a clear display of information,visuals and guidance available,and with embedded advanced digital audit and project management capabilities.The workflows and revised audit methodologies are scalable,adjusting the requirements to the size and complexity of the audit engagement.KPMG Clara workflows
103、 significantly enhance the execution of an audit by KPMG professionals and drive audit quality and global consistency.Using data mining and tracking of relevant engagement-level data indicators,the KPMG Clara workflows can also facilitate monitoring of audit execution at the engagement level.We cont
104、inue to enhance the KPMG Clara smart audit platform to accommodate evolving security demands,further integrate existing audit applications into a single platform,and develop new capabilities to digitalize additional audit processes.Client confidentiality,information security and data privacyThe impo
105、rtance of maintaining client confidentiality is emphasized through a variety of mechanisms,including the Code.We have policies on information security,confidentiality,personal information and data privacy.KPMG firms have a document-retention policy concerning the retention period for audit documenta
106、tion and other records relevant to an engagement in accordance with applicable laws,regulations and professional standards.KPMG provides training on confidentiality,information protection and data-privacy requirements to all KPMG personnel annually.2022 Copyright owned by one or more of the KPMG Int
107、ernational entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssess
108、ing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesEmbracing digital technologyTransparency Report 2022 I 12Nurturing diverse skilled teamsOur people make the real difference and are instrumental
109、in shaping the future of audit at KPMG.We put quality and integrity at the core of our audit practice.Our auditors have diverse skills and capabilities to address complex problems.Recruiting appropriately qualified and skilled people,including specialists,with diversity of perspective and experience
110、One of the key drivers of quality is ensuring that KPMG professionals have the appropriate skills and experience,motivation and purpose to deliver high-quality audits.This requires the right recruitment,development,reward,promotion and assignment of professionals.RecruitmentKPMG has invested in unde
111、rstanding how we can attract the talent we need now and in the future across the organization.This includes building an extraordinary people experience for all current and prospective partners and employees.KPMG International provides KPMG firms with guidance and training on sourcing high-quality ta
112、lent with the necessary skills,expertise and qualifications to deliver organizational objectives and with the ability to make a positive contribution to the Values,capabilities and goals of the organization.Additionally,we require that KPMG firms perform candidate application screening that is based
113、 on fair and job-related criteria to ensure that candidates possess the appropriate skills and experience to perform competently and are suitable and best placed for their roles.The KPMG policies also require that new employees undergo rigorous reference and background checks subject to legal and re
114、gulatory requirements.KPMG is consistently ranked as one of the worlds most attractive employers among business students.As the audit evolves,we are focused on improving our attractiveness to business and STEM(science,technology,engineering and mathematics)talent in the future.Inclusion,diversity&eq
115、uity programsKPMG is committed to building a diverse and equitable organization that is inclusive to all.Inclusion,diversity and equity(IDE)is at the core of our very existence,helping us build great teams with diverse views that represent the world we live in.It leads to better decision making,driv
116、es greater creativity and innovation,and encourages us to stand up,live our Values and do what is right.We recognize that KPMG firms global position working with clients around the world affords us a privileged place.With that comes an opportunity and responsibility to achieve more and push for a fa
117、irer,more equitable society.KPMGs Global IDE Collective Action Plan outlines the actions that are necessary to advance inclusion,diversity and equity across all KPMG firms.For more about inclusion and diversity at KPMG,read here.Reward and promotionAll KPMG firms are required to have compensation an
118、d promotion policies that are informed by market data and are clear,simple,fair and linked to the performance and talent review process.Such policies help our people understand what is expected of them,and what they can expect to receive in return.The connection between performance and reward is ach
119、ieved by assessing relative performance across a peer group to inform reward decisions.Reward decisions are based on the consideration of both individual and firm performance.The extent to which our people feel their performance has been reflected in their reward is measured through the annual Globa
120、l People Survey,with action plans developed by KPMG firms as required.The results of performance evaluations directly affect the promotion and remuneration of partners and employees and,in some cases,their continued association with KPMG.2022 Copyright owned by one or more of the KPMG International
121、entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks t
122、o qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesNurturing diverse skilled teamsTransparency Report 2022 I 13Assigning an appropriately qualified teamPartner assignmentsAll KPMG firms are required to have
123、procedures in place to assign engagement partners and other professionals to a specific engagement on the basis of their skill sets,relevant professional and industry experience,and the nature of the assignment or engagement.Function heads are responsible for the partner assignment process.Key consi
124、derations include partner experience and capacity based on an annual partner portfolio review to perform the engagement taking into account the size,complexity and risk profile of the engagement and the type of support to be provided(i.e.the engagement team composition and specialist involvement).En
125、gagement teamsAudit engagement partners are required to be satisfied that their engagement teams have appropriate competencies,training and capabilities,including time to perform audit engagements in accordance with the KPMG audit methodology,professional standards,and applicable legal and regulator
126、y requirements.If the right resource is not available within the KPMG firm,the firm accesses a network of highly skilled KPMG professionals from other KPMG firms.Investing in data-centric skills,including data mining,analysis and visualizationKPMG is strategically investing in our talent pipeline by
127、 partnering with world-class institutions to sustain our strong leadership,while also looking forward to cultivating the skills and capabilities that will be needed in the future.We are recruiting and training professionals who specialize in software,cloud capabilities and artificial intelligence an
128、d who can bring leading technology capabilities to our smart audit platform.KPMG provides training on a wide range of technologies to ensure that professionals not only meet the highest professional standards,but are also upskilled in new technologies.With this approach we are bringing together the
129、right people with the right skills and the right technology to perform quality audits.Focused learning and development on technical expertise,professional acumen and leadership skillsCommitment to technical excellence and quality service deliveryAll KPMG professionals are provided with the technical
130、 training and support they need to perform their roles.This includes access to internal specialists and the professional practice department for consultation.Lifetime learning strategyAnnual training priorities for development and delivery are identified by the audit learning and development groups
131、at the global,regional and,where applicable,KPMG firm level.Mandatory learning requirements for audit professionals across the organization are established annually.Ongoing mentoring and on-the-job coachingLearning is not confined to a single approach rich learning experiences are available when nee
132、ded through coaching and just-in-time learning and aligned with job-specific role profiles and learning paths.Mentoring and on-the-job experience play key roles in developing the personal qualities important for a successful career in auditing,including professional judgment,technical excellence and
133、 instinct.We support a coaching culture throughout KPMG as part of enabling our professionals to achieve their full potential and instill that every team member is responsible for building the capacity of the team,coaching other team members,and sharing experiences.Licensing and mandatory requiremen
134、ts for IFRS Standards and US GAAP engagementsSpecific requirements apply to partners,managers and engagement quality control(EQC)reviewers working on IFRS Standards engagements in jurisdictions where IFRS Standards are not the predominant financial reporting framework.Similar policies apply to engag
135、ements performed outside the US to report on financial statements or financial information prepared in accordance with US GAAP and/or audited in accordance with US auditing standards,including reporting on the effectiveness of the entitys internal control over financial reporting(ICOFR).2022 Copyrig
136、ht owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagem
137、entsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesNurturing diverse skilled teamsTransparency Report 2022 I 14These require that at a minimum,all partners,m
138、anagers and,if appointed,the EQC reviewers(and for engagements conducted in accordance with US GAAP and/or US auditing standards engagements,the engagement partner,engagement manager,engagement in-charge and,if appointed the EQCR reviewers)assigned to the engagement have completed relevant training
139、and that collectively the engagement team has sufficient experience to perform the engagement or has implemented appropriate safeguards to address any shortfalls.Recognizing qualityKPMGs approach to performance development,known as Open Performance Development,is built around the Everyone a Leader p
140、erformance principles,and includes:Global role profiles(including role profiles specific to audit quality accountabilities and responsibilities);A goal library(including audit quality content);and Standardized review forms(with provision for audit quality ratings).Open Performance Development is lin
141、ked to KPMGs Values and designed to articulate what is required for success both individually and collectively.We know that by being clear and consistent about the behaviors we expect and rewarding those who demonstrate them,we will continue to drive a relentless focus on audit quality.At the same t
142、ime,KPMG is driving a shift in our performance-driven culture,supported by and enacted through leading technology that allows us to embed audit quality into the assessment of performance and the decisions around reward,as well as drive consistency across the global organization.Quality and complianc
143、e metrics are considered in assessing the overall evaluation,promotion and remuneration of partners.These evaluations are conducted by performance managers and partners who are able to assess performance.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entiti
144、es provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectively
145、Performing quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesNurturing diverse skilled teamsTransparency Report 2022 I 15Associating with the right clients and engagementsRigorous global client and engagement acceptance and continuance policies are vi
146、tal to being able to provide high-quality professional services.Following the client and engagement acceptance and continuance policiesThe KPMG client and engagement acceptance and continuance policies and processes are designed to identify and evaluate potential risks prior to accepting or continui
147、ng a client relationship or performing a specific engagement.KPMG firms are required to evaluate whether to accept or continue a client relationship or perform a specific engagement.Where client/engagement acceptance(or continuance)decisions pose significant risks,additional approvals are required.A
148、ccepting appropriate clients and engagementsClient evaluation processEvery KPMG firm is required to undertake an evaluation of every prospective client.This involves obtaining sufficient information about the prospective client,its key management and significant beneficial owners and then properly a
149、nalyzing the information to be able to make an informed acceptance decision.This evaluation includes an assessment of the clients risk profile and obtaining background information on the client,its key management,directors and owners.If necessary,each KPMG firm obtains additional information require
150、d to satisfy applicable legal and/or regulatory requirements.Engagement evaluation processEach prospective engagement is also evaluated to identify potential risks in relation to the engagement.A range of factors are considered as part of this evaluation,including potential independence and conflict
151、 of interest issues(using Sentinel,KPMGs conflicts and independence checking system),intended purpose and use of engagement deliverables,public perception and whether the services would be unethical or inconsistent with our Values,as well as factors specific to the type of engagement.For audit servi
152、ces,these factors include the competence of the clients financial management team and the skills and experience of KPMG professionals assigned to staff the engagement.The evaluation is made in consultation with other senior KPMG firm personnel and includes additional reviews as required.Continuance
153、processAn annual re-evaluation of all audit clients is required to be undertaken by all KPMG firms.Recurring or long-running non-audit engagements are also subject to periodic re-evaluation.In addition,clients are required to be re-evaluated if there is an indication that there may be a change to th
154、eir risk profile.Withdrawal processIf a KPMG firm comes to a preliminary conclusion that indicates it should withdraw from an engagement or client relationship,it is required to consult internally and identify any required legal,professional and regulatory responsibilities.It is also required to com
155、municate as necessary with those charged with governance and any other appropriate authority.Managed portfolio of clientsKPMG firms leadership appoints engagement partners who have the appropriate competence,capabilities,time and authority to perform their role for each engagement.They review each a
156、udit partners client portfolio in individual discussions with the audit partner.The reviews consider the industry,nature and risk of the client portfolio as a whole along with the competence,capabilities and capacity of the partner and wider team to deliver a quality audit for every client.2022 Copy
157、right owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and enga
158、gementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesAssociating with the right clients and engagementsTransparency Report 2022 I 16Being independent and et
159、hicalAuditor independence is a cornerstone of international professional standards and regulatory requirements.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying exper
160、tise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our c
161、ulture and ValuesBeing independent and ethicalActing with integrity and living our ValuesKPMG Internationals detailed independence policies and procedures incorporate the IESBA Code of Ethics.These are set out in the KPMG GQ&RM Manual,which applies to all KPMG firms.Automated tools,which are require
162、d to be used for every prospective engagement to identify potential independence and conflict of interest issues,facilitate compliance with these requirements.Organization-wide processes are supplemented by KPMG firms own policies and processes to ensure compliance with additional local independence
163、 standards.The Head of the Global Independence Group is supported by a core team of specialists to help ensure that KPMG has robust and consistent independence policies and procedures,as well as guidance and tools to help KPMG firms and their personnel comply with these requirements.The Global Indep
164、endence Group communicates regularly to KPMG firms on policy changes and enhancements,as well as providing guidance on complying with the independence standards.The Global Independence Group holds various workshops and also provides training over the course of each year.Each KPMG firm has a designat
165、ed Ethics and Independence Partner(EIP)who has primary responsibility for the direction and execution of ethics and independence(E&I)policies and procedures locally.The EIP is responsible for communicating and implementing KPMG Internationals policies and procedures and ensuring that local independe
166、nce policies and procedures are established and effectively implemented when they are more stringent than KPMG Internationals requirements.KPMG partners and employees are required to consult with their KPMG firms EIP on certain specific independence matters as defined in the GQ&RM Manual.The EIP may
167、 also be required to consult with the Global Independence Group depending upon the facts and circumstances.KPMG firms are required to clearly communicate their independence policies and procedures to all of their personnel.Compliance with independence policies and processes is monitored through annu
168、al independence confirmations and compliance audits within KPMG firms,as well as through KPMGs wider monitoring programs described in the Monitoring and remediation section of this report.Maintaining an objective,independent and ethical mindset,in line with the Code and policiesPersonal financial in
169、dependenceKPMG partners and employees are required to be free from prohibited financial interests in,and prohibited financial relationships with,audit and assurance clients(by definition,audit client includes its related entities or affiliates),their management,directors and,where required,significa
170、nt owners.All partners irrespective of their firm or function are generally prohibited from owning securities of any audit client of any KPMG firm.KPMG firms use a web-based independence compliance system(KICS)to assist KPMG professionals in complying with personal independence investment policies.T
171、his system contains an inventory of publicly available investments and provides a tracking mechanism for required users to report acquisitions and disposals of their financial interests.The system facilitates monitoring by identifying and reporting impermissible investments and other non-compliant a
172、ctivity(i.e.late reporting of an investment acquisition).Transparency Report 2022 I 17All partners and manager grade or above client-facing employees are required to use the KICS system prior to entering into an investment to identify whether they are permitted to do so.They are also required to mai
173、ntain a record of all of their investments in publicly available funds and securities registered on recognized or regulated exchanges in KICS,which automatically notifies them if any investment subsequently becomes restricted.Newly restricted investments are required to be disposed of within five bu
174、siness days of the notification.KPMG firms monitor partner and manager compliance with this requirement as part of our program of independence compliance audits ofprofessionals.The Global Independence Group provides guidance and required procedures relating to the audit and inspection by KPMG firms
175、of personal compliance with the KPMG independence policies.This includes sample criteria including the minimum number of professionals to be audited annually.Employment relationshipsAny KPMG professional providing services to an audit or assurance client is required to notify the KPMG firms EIP if t
176、hey intend to enter into employment negotiations with that client.For partners,this requirement extends to any audit or assurance client of any KPMG firm that is a public interest entity.Former members of the audit or assurance team or former partners of a KPMG firm are prohibited from joining an au
177、dit or assurance client in certain roles unless they have disengaged from all significant connections to the KPMG firm,including payments which are not fixed and predetermined and/or would be material to the KPMG firm,and have ceased participating in the firms business and professional activities.Ke
178、y audit partners and members of the chain of command for an audit client that is a public interest entity are subject to time restrictions(referred to as cooling-off periods)that preclude them from joining that client in certain roles until a defined period has passed.Firm financial independenceKPMG
179、 firms are required to also be free from prohibited interests in,and prohibited relationships with,audit clients and their management,directors and,where required,significant owners.KICS is used to record KPMG firms direct and material indirect investments in listed entities and funds(or similar inv
180、estment vehicles)as well as in non-listed entities or funds.This includes investments held in associated pension and employee benefit plans.Additionally,KPMG firms are required to record in KICS all borrowing and capital financing relationships,as well as custodial,trust and brokerage accounts that
181、hold firm assets.Business relationships/suppliersKPMG has policies and procedures in place that are designed to ensure its business relationships with audit and assurance clients are maintained in accordance with the IESBA Code of Ethics and other applicable independence requirements,such as those p
182、romulgated by the US Securities and Exchange Commission(SEC).Ethics and independence training and confirmationsAll KPMG partners and client service professionals,as well as certain other individuals,are required to complete independence training that is appropriate to their grade and function upon j
183、oining KPMG and on an annual basis thereafter.All KPMG partners and employees are required to sign,upon joining KPMG,and thereafter,an annual confirmation stating that they have remained in compliance with applicable E&I and other key policies.Non-audit servicesAll KPMG firms are required,at a minim
184、um,to comply with the IESBA Code of Ethics and applicable laws and regulations related to the scope of services that can be provided to audit clients.In addition to identifying potential conflicts of interest,Sentinel facilitates compliance with independence requirements.Certain information on all p
185、rospective engagements,including detailed service descriptions,deliverables and estimated fees,are required to be entered into Sentinel as part of the engagement acceptance process.When the engagement is for an audit client,an evaluation of potential independence threats and safeguards is also requi
186、red to be included in the Sentinel submission.Lead Audit Engagement Partners(LAEPs)are required to maintain group structures for their publicly traded and certain other audit clients,including their related entities or affiliates,in Sentinel.They are also responsible for identifying and evaluating a
187、ny independence threats that may arise from the provision of a proposed non-audit service and the safeguards available to address those threats.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introd
188、uction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGove
189、rnance and leadershipLiving our culture and ValuesBeing independent and ethicalTransparency Report 2022 I 18For entities for which group structures are maintained,Sentinel enables LAEPs to review,request revisions to,approve,or deny any proposed service for those entities worldwide.For approved prop
190、osed services,Sentinel designates a timeframe during which the approval remains valid.Upon expiration of the established timeframe,the services are required to be complete or be re-evaluated for permissibility;otherwise,the services are required to be exited.KPMG global independence policies prohibi
191、t KPMG firm audit partners from being evaluated on,or compensated based on,their success in selling non-audit services to their audit clients.KPMG firms are required to establish and maintain a process to review and approve all new and significantly modified services that are developed.Each KPMG fir
192、ms EIP is involved in the review of potential independence issues related to these new or modified services.Fee dependencySelf-interest or intimidation threats at the KPMG firm level may arise when the total fees from an audit client represent a large proportion of the total fees of the KPMG firm ex
193、pressing the audit opinion.In the event that the total fees from a public interest entity audit client and its related entities represent more than 10 percent of the total fees received by a particular KPMG firm for two consecutive years:Disclosure is required to those charged with governance at the
194、 audit client;and A partner from another KPMG firm is appointed as the engagement quality control(EQC)reviewer.Avoiding conflicts of interestAll KPMG firms and personnel are responsible for identifying and managing conflicts of interest,which are circumstances or situations that may reasonably be ex
195、pected to have an impact on the firms ability to be objective or act without bias.KPMG engagement teams are required to use Sentinel to identify potential conflicts so that these can be addressed in accordance with legal and professional requirements.Personal conflictsConflicts of interest can arise
196、 in situations where KPMG partners or employees have a personal connection with the client that may interfere,or be perceived to interfere,with their ability to remain objective,or where they are personally in possession of confidential information relating to another party or a transaction.Consulta
197、tion with the KPMG firms Risk Management Partner(RMP)or the EIP is required in these situations.Policies are also in place to prohibit KPMG personnel from offering or accepting inducements,including gifts and hospitality,to or from audit clients,unless the value is trivial and inconsequential,is not
198、 prohibited by relevant law or regulation,and is not deemed to have been offered with the intent to improperly influence the behavior of the recipient or which would cast doubt on the individuals or the KPMG firms integrity,independence,objectivity or judgment.Resolving conflicts of interestEach KPM
199、G firm has one or more allocated risk management individual who are responsible for reviewing any identified potential conflict and working with the affected KPMG firms to resolve the conflict,the outcome of which is required to be documented.Escalation and dispute resolution procedures are in place
200、 for situations in which agreement cannot be reached on how to manage a conflict.If a potential conflict issue cannot be appropriately mitigated,the engagement is declined or terminated.Independence breachesAll KPMG personnel are required to report an independence breach to their KPMG firm EIP as so
201、on as they become aware of it.All breaches of independence requirements of the IESBA Code of Ethics or other external independence requirements are required to be reported to those charged with governance as soon as possible,except where alternative timing for less significant breaches has been agre
202、ed to with those charged with governance.Each KPMG firm is required to have a documented and communicated disciplinary policy in relation to breaches of independence policies,incorporating incremental sanctions reflecting the seriousness of any violations.In the event of non-compliance with the KPMG
203、 independence policies,irrespective of how that non-compliance is identified,KPMG professionals are subject to the disciplinary policy.Partner rotationKPMG partner rotation policies are consistent with the requirements of the IESBA Code of Ethics and require compliance with any stricter local applic
204、able rotation requirements.KPMG partners are subject to periodic rotation of their responsibilities for audit clients under applicable laws,regulations,independence rules and KPMG International policy.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities
205、provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPer
206、forming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesBeing independent and ethicalTransparency Report 2022 I 19These requirements place limits on the number of consecutive years that partners in certain roles may provide audit services to a clien
207、t,followed by a time-out period during which these partners may not participate in the audit,provide quality control for the audit,consult with the engagement team or the client regarding technical or industry specific issues,in any way influence the outcome of the audit,lead or coordinate other pro
208、fessional service delivered to the client,oversee the relationship of the KPMG firm with the client,or have any other significant or frequent interaction with senior management or those charged with governance.KPMG firms are required to monitor the rotation of audit engagement leaders(and any other
209、key roles where there is a rotation requirement)and develop related transition plans to enable the allocation of partners with the necessary competence and capability to deliver a consistent quality of service to clients.Firm rotationIn certain jurisdictions,KPMG firms are only permitted to act as a
210、n auditor for a specific audit client for a defined period of time and not to act as auditor for that client for a specified period of time thereafter.KPMG firms in these jurisdictions are required to have processes in place to track and manage compliance with audit firm rotation requirements.Zero-t
211、olerance approach to bribery and corruptionCompliance with laws,regulations and standards is a key aspect for everyone at KPMG.We have zero tolerance of bribery and corruption.KPMG policy prohibits involvement in any type of bribery even if such conduct is legal or permitted under applicable law or
212、local practice.We also do not tolerate bribery by third parties,including by KPMG firm clients,suppliers or public officials.KPMG International requires KPMG firms to have appropriate internal controls in place to mitigate the risk of involvement in bribery by the firm and its partners and employees
213、.All KPMG partners and employees are required to take training covering compliance with laws,regulations and professional standards relating to anti-bribery and corruption,including the reporting of suspected or actual non-compliance.More about KPMG lnternationals position and policies on anti-bribe
214、ry and corruption is available here.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled tea
215、msAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesBeing independent and ethicalTransparency Report 2022 I 20
216、Assessing risks to qualityKPMG International reviews the results of quality monitoring programs and develops additional global remediation actions as needed.Global remediation actions developed by KPMG International are aimed at changing behavior and driving quality and consistency across the global
217、 organization.Remediation actions may be implemented through the development of global policies,procedures,training tools and guidance.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction an
218、d forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance an
219、d leadershipLiving our culture and ValuesAssessing risks to qualityTransparency Report 2022 I 21Communicating effectivelyWe recognize that another important contributor to upholding audit quality is to obtain and promptly act upon feedback from key stakeholders.2022 Copyright owned by one or more of
220、 the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and
221、ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesCommunicating effectivelyProvide insights,and maintain open and honest two-way communicationHonest and candid communication with cli
222、ents,including management and those charged with governance,is a key aspect of our reporting and quality service delivery.KPMG Clara includes a client collaboration portal,allowing clients real-time monitoring of the status of the audit as well as seamless communication with the audit engagement tea
223、m.Communications with those charged with governanceKPMG International stresses the importance of keeping those charged with governance informed of issues arising throughout the audit through guidance and supporting resources.KPMG firms and professionals achieve this through a combination of reports
224、and presentations,attendance at audit committee or board meetings,and,when appropriate,ongoing discussions with management and members of the audit committee.The role of audit committees is key in supporting quality auditing by overseeing the relationship between company and auditor and challenging
225、what auditors do and how they do it.Audit Committee Institute(ACI)In recognition of the demanding and important role that audit committees play in driving audit quality and the challenges that they face in meeting their responsibilities,KPMGs Audit Committee Institute(ACI)aims to help audit committe
226、e members enhance their commitment and ability to implement effective audit committee processes.The ACI operates in more than 38 jurisdictions across the globe and provides audit committee members with guidance on matters of interest to audit committees;updates on issues like EU audit reform,changes
227、 to accounting standards and other matters of interest to audit committees(such as cyber security and corporate culture);and the opportunity to network with their peers during an extensive program of technical updates and awareness seminars.The ACIs offerings cover the array of challenges facing aud
228、it committees and businesses today from risk management and emerging technologies to strategy and global compliance.Further details and insights on the ACI are available here.IFRS InstituteKPMGs Global IFRS Institute provides information and resources to help board and audit committee members,execut
229、ives,management,stakeholders and government representatives gain insight and access thought leadership about the evolving global financial and sustainability reporting frameworks.Conduct and follow-up on the Global People Survey(GPS)Only with engaged,talented people can KPMG deliver audits in line w
230、ith our audit quality expectations.Annually all KPMG personnel are invited to participate in KPMGs GPS to share their perception about their experience of working at KPMG.The GPS provides a measure of our peoples engagement and insights into areas driving engagement.Results can be analyzed by severa
231、l factors,for example functional or geographic area,grade and gender to provide additional focus for action.Through the GPS,KPMG gains additional insight on how we are faring on categories known to impact employee engagement.We also cover areas of focus that are directly relevant to audit quality;th
232、e survey includes specific audit quality-related questions that all individuals who participated in an audit in the previous 12 months are asked to respond to,giving us a particular data set for audit quality-related matters.The survey also provides KPMG International leadership with insights relate
233、d to quality and risk behaviors,audit quality,upholding the KPMG Values,employee and partner attitudes to quality,leadership and tone at the top.All KPMG firms are required to participate in the survey each year and to take appropriate actions to communicate and respond to its findings.Audit-specifi
234、c analysis of GPS results is also undertaken,with a particular focus on audit quality.Results and key themes are presented to the Global Audit Steering Group on an annual basis for consideration of appropriate remedial action,if needed.Transparency Report 2022 I 22 Performing quality engagementsHow
235、an audit is conducted is as important as the result.KPMG partners and employees are expected to demonstrate behaviors consistent with our Values and follow policies and procedures in the performance of effective and efficient audits.2022 Copyright owned by one or more of the KPMG International entit
236、ies.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qua
237、lityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesPerforming quality engagementsTaking responsibility for audit quality at the KPMG firm levelWhile KPMG International creates the global framework and policies fo
238、r audit quality,KPMG firm leadership is responsible for the delivery of that quality.Each KPMG firm is responsible for establishing and maintaining a system of quality management.Within each KPMG firm,there is a Head of Audit,who has primary responsibility for audit quality and is supported by the f
239、irmsRisk Management Partner(RMP)in maintaining a system of quality management.Encouraging a culture of consultationKPMG encourages a culture of consultation that supports engagement teams throughout their decision-making processes and is a fundamental contributor to audit quality.KPMG promotes a cul
240、ture in which consultation is recognized as a strength,and that encourages all KPMG professionals to consult on difficult or contentious matters.To help with this,KPMG firms are required to have establishedprotocols for consultation and documentation of significant matters,including procedures to fa
241、cilitate the resolution of differences of opinion on engagement issues.KPMG audit,assurance and reporting manuals also include required consultations.In addition,the GQ&RM Manual includes mandatory consultation requirements on certain matters.Technical consultation and global resourcesTechnical acco
242、unting,auditing and assurance support is available to KPMG firms through the Global Audit Methodology Group(GAMG),the KPMG Global Solutions Group(KGSG),the International Standards Group(ISG)and the PCAOB Standards Group(PSG),all of which report directly to the Global Head of Audit.Global Audit Metho
243、dology Group(GAMG)KPMGs audit and assurance methodology is developed and maintained by the GAMG.The GAMG develops our audit and assurance methodology based on the requirements of the applicable audit and assurance standards of the IAASB,PCAOB and AICPA.KPMG Global Solutions Group(KGSG)The KGSG is re
244、sponsible for the envisioning,development and deployment of global audit tools,including new technology and automation innovations.KGSG and GAMG work collaboratively to support KPMG firms through collaboration,innovation and technology.We have made significant investment in our audit and assurance m
245、ethodology and tools,with the core focus of improving audit quality,global consistency and standardization.With locations in each of the three KPMG regions(Americas,EMA and Asia Pacific),the KGSG and GAMG teams comprise professionals with backgrounds in audit,assurance,IT,data science,mathematics,st
246、atistics and more,from around the world,who bring diverse experiences and innovative ways of thinking to further evolve KPMGs audit capabilities.More information about KPMGs global audit methodology and technology-based tools is included in the Embracing digital technology section of this report.Tra
247、nsparency Report 2022 I 23International Standards Group(ISG)The KPMG ISG works with IFRS topic teams with geographic representation from around the world,and the IFRS Panel and Methodology Advisory Group(MAG)to promote consistency of interpretation of IFRS Standards and auditing requirements between
248、 member firms,identify emerging issues,and develop global guidance on a timely basis.The ISG recently has expanded its remit to encompass the activities of the International Sustainability Standards Board(ISSB),including providing global thought leadership and guidance as the ISSB issues standards.P
249、CAOB Standards Group(PSG)The KPMG PSG comprises a dedicated group of professionals with backgrounds in PCAOB auditing standards who promote consistency in the interpretation of those same standards in KPMG firms audits of non-US components of US companies and of foreign private issuers and non-US co
250、mponents of SEC issuers,as defined by SEC regulations.The PSG also provides input into the development of training for auditors who work on PCAOB audit engagements and,where practicable,facilitates the delivery of such training.Professional practice resourcesKPMG firms provide consultation support o
251、n auditing and technical accounting matters to their audit professionals through professional practice resources.These resources also assist engagement teams where there are differences of opinion either within teams or with the engagement quality control reviewer.Unresolved differences are required
252、 to follow a prescribed escalation protocol for final resolution.KPMGs ISG and the PSG are also available for consultation support when required.Critically assessing audit evidence using professional judgment and skepticismOn all KPMG audits,we design and perform audit procedures whose nature,timing
253、 and extent are based on and responsive to the assessed risks to gather audit evidence.We consider all audit evidence obtained during the course of the audit,including contradictory or inconsistent audit evidence.Each KPMG team member is required to exercise professional judgment and maintain profes
254、sional skepticism throughout the audit engagement.Professional skepticism involves a questioning mindset and alertness to contradictions or inconsistencies in the audit evidence.Professional judgment encompasses the need to be aware of and alert to biases that may pose threats to good judgments.Dire
255、ct,coach,supervise and reviewEmbedding ongoing coaching,supervision and reviewTo invest in building the skills and capabilities of KPMG professionals,we promote a continuous learning environment and support a coaching culture.Ongoing direction,coaching and supervision during an audit involves:Engage
256、ment partner participation in planning discussions;Tracking the progress of the audit engagement;Considering the competence and capabilities of the engagement team,including whether they have sufficient time to carry out their work;Considering whether the engagement team understands their instructio
257、ns and whether the work is being carried out in accordance with the planned approach to the engagement;Helping engagement team members address any significant matters that arise during the audit and modifying the planned approach appropriately;and Identifying matters to review and discuss with more
258、experienced team members during the engagement.The timely review of the work performed so that significant matters are promptly identified,discussed and addressed is also used as a coaching opportunity.Engagement quality control(EQC)reviewsThe EQC review is an important part of KPMGs approach to qua
259、lity.An EQC reviewer is required to be appointed by KPMG firms for audit engagements,including any related review(s)of interim financial information,of all listed entities,non-listed entities with a high public profile,engagements that require an EQC review under applicable laws or regulations,and o
260、ther engagements,including certain assurance engagements,as designated by the Risk Management Partner or country Head of Audit.An EQC review is an objective evaluation of significant judgments made by the engagement team and its related conclusions,performed by the EQC reviewer,and completed on or b
261、efore the date of the report.The EQC reviewers evaluation of significant judgments includes an evaluation of the engagement teams assessment of significant risks,including fraud risks,the related responses and whether the related conclusions are appropriate.The EQC review is completed only after the
262、 EQC reviewer is satisfied that all significant matters they raised have been resolved,though the engagement partner is ultimately responsible for the resolution of accounting and auditing matters.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities prov
263、ide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerform
264、ing quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesPerforming quality engagementsTransparency Report 2022 I 24EQC reviewers are required to meet training,knowledge and experience qualifications to perform the EQC review for a particular engagement.
265、Reviewers must be objective,cannot be members of the engagement team and must be independent of the audit client.Appropriately support and document conclusionsReportingAuditing standards,either international or local,largely dictate the format and content of the auditors report,which includes an opi
266、nion on the fair presentation of the reporting entitys financial statements in all material respects.Engagement leaders form all audit opinions based on the audit performed and evidence obtained.In preparing auditors reports,engagement partners have access to reporting guidance and technical support
267、 through consultations with their Department of Professional Practice.Engagement documentationAudit documentation is completed and assembled according to the timeline determined by the KPMG firm in accordance with KPMG International policy and applicable auditing standards.We have implemented admini
268、strative,technical and physical safeguards to protect the confidentiality and integrity of client and KPMG firm information.The policies that KPMG International adopts apply to all KPMG firms to help reduce the time period allowed to assemble audit documentation,which is significantly less than the
269、time period required by the applicable auditing standards.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturi
270、ng diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesPerforming quality engagementsTransp
271、arency Report 2022 I 25Monitoring and remediationIntegrated quality monitoring and compliance programs enable KPMG firms to identify quality deficiencies,to perform root cause analysis and develop,implement and report remedial action plans,both in respect of individual audit engagements and the over
272、all system of quality management.Rigorously monitor and measure qualityCommitment to continuous improvementKPMG commits to continually improve the quality,consistency and efficiency of KPMG firm audits.The quality monitoring and compliance programs are globally consistent in their approach across al
273、l KPMG firms,including the nature and extent of testing and reporting.Internal monitoring and compliance programsOur quality monitoring and compliance programs are created by KPMG International and applied across KPMG firms.The programs evaluate both:Engagement performance in compliance with the app
274、licable professional standards,applicable laws and regulations,and KPMG International key policies and procedures;and KPMG firms compliance with KPMG International key policies and procedures,and the relevance,adequacy and effective operation of key quality management policies and procedures.Our int
275、ernal monitoring programs also contribute to the assessment of whether our system of quality management has been appropriately designed,effectively implemented,and operates effectively.Our internal monitoring programs include:Quality Performance Reviews(QPR);KPMG Quality&Compliance Evaluation progra
276、m(KQCE);and Global Quality&Compliance Review(GQ&CR)program.Participation in these internal monitoring programs is mandatory for all KPMG firms.KPMG firms communicate the results of the programs internally and take action to make improvements where needed.The results are also considered at a wider re
277、gional level and by KPMG International.Global Audit Quality Monitoring Group(GAQMG)The GAQMG identifies issues to help drive audit quality.The group comprises a team of partners,directors and senior managers experienced in performing quality performance reviews of listed and related entity(LRE)audit
278、 engagements.The team also includes partners and professionals with experience in auditing general information technology controls and application controls.Audit Quality Performance Reviews(QPR)programThe Audit QPR program assesses engagement level performance and identifies opportunities to improve
279、 engagement quality.Each engagement leader is reviewed at least once in a four-year cycle.A risk-based approach is used by KPMG firms to select engagements and the reviews are overseen by an independent experienced lead reviewer.KPMG International provides training to review teams and others oversee
280、ing the process,with a focus on topics of concern identified by audit oversight regulators and the need to be as rigorous as external reviewers.Consistent criteria are used to determine engagement ratings and audit practice evaluations,which can then be used to measure improvements in the future.Lea
281、d audit engagement partners(LAEPs)are notified of not compliant ratings on their respective cross-border engagements.Additionally,LAEPs of parent companies/head offices are notified where a subsidiary/affiliate of their client group is audited by a KPMG firm where significant quality issues have bee
282、n identified during the Audit QPR program.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skill
283、ed teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesMonitoring and remediationTransparency Report 2022 I
284、 26KPMG Quality&Compliance Evaluation(KQCE)program KPMG International develops and maintains quality management policies and processes that apply to all KPMG firms.These policies and processes,and their related procedures,include the requirements of the GQ&RM Manual,ISQC 1,and the implementation req
285、uirements of ISQM 1 for this transition period.The objectives of the KQCE program are to:Document,assess and provide evidence of the KPMG firms implementation of ISQM 1,extent of compliance of their system of quality management with the GQ&RM policies,and key legal and regulatory requirements;and Pr
286、ovide the basis for the KPMG firm to evaluate compliance with relevant professional standards and applicable legal and regulatory requirements.Where exceptions are identified,the KPMG firm is required to develop appropriate action plans and then monitor the status of each action item.Global Quality&
287、Compliance Review(GQ&CR)programEach KPMG firm is subject to a GQ&CR conducted by KPMG Internationals GQ&CR team,independent of the KPMG firm,at various intervals based on identified risk criteria.The GQ&CR team performing the reviews is independent of the KPMG firm and is objective and knowledgeable
288、 of GQ&RM policies.GQ&CRs assess compliance with selected KPMG International policies and procedures and share best practices among KPMG firms.The GQ&CR provides an independent assessment of:A KPMG firms commitment to quality and risk management and the extent to which its overall structure,governan
289、ce and financing support and reinforce this commitment;A KPMG firms compliance with key KPMG International policies and procedures;and The robustness with which the KPMG firm performs its own quality and compliance program(formerly the RCP;currently the KQCE program).KPMG firms are required to devel
290、op action plans to respond to all GQ&CR findings that indicate improvement is required and agree to these with the GQ&CR team.A KPMG firms progress with its action plan is monitored by the GQ&CR central team.Results are reported to the GQ&RMSG and,where necessary,to relevant KPMG International and r
291、egional leadership.Obtain,evaluate and act on stakeholder feedbackWe recognize that another important contributor to upholding audit quality is to obtain and act upon feedback from key stakeholders.RegulatorsKPMG International has regular two-way communication with the International Forum of Indepen
292、dent Audit Regulators(IFIAR),principally through IFIARs Global Audit Quality Working Group(GAQ WG),to discuss thematic audit quality issues along with targeted strategies for improvement.We value the open,honest and transparent dialogue that IFIAR facilitates on global audit quality issues.Every KPM
293、G firm is expected to maintain professional and respectful relationships with regulators,including proactively engaging,responding to questions in a timely manner and taking appropriate remedial actions.Client feedbackClient feedback is also important.KPMG firms proactively seek feedback from client
294、s through direct conversations and third-party surveys.Perform root cause analysisRoot cause analysis is important in order to identify and address audit quality issues and prevent them from recurring in the future.All KPMG firms are required to carry out such analysis.All Heads of Audit are respons
295、ible for audit quality,including the remediation of audit quality issues.Risk Management Partners monitor the implementation of remediation plans.At a global level,we continue to strengthen our root cause analysis process and drive consistency across the organization.2022 Copyright owned by one or m
296、ore of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independen
297、t and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesMonitoring and remediationTransparency Report 2022 I 27Governance and leadershipGlobal CouncilAll member firms(without sub-lic
298、ensees)Global Board Global Chairman,3 Regional Chairmen and other members(maximum 28 members)Global Management TeamGlobal Chairman;Heads of Audit,Tax and Advisory;Quality,Risk and Regulatory;People;Clients and Markets;New Business Innovation;Technology and Knowledge;Global Chief Administrative Offic
299、er;Global COO;General Counsel;Global Head of Corporate AffairsExecutive CommitteeGovernance CommitteeQuality,Risk Management&Reputation CommitteeAudit QualityCommittee KPMG International structure and governance KPMG InternationalKPMG is a global organization of professional services firms providing
300、 Audit,Tax and Advisory services.KPMG is the brand under which the member firms of KPMG International Limited(“KPMG International”)operate and provide professional services.Each firm is a separate legal entity and together they form the KPMG global organization.“KPMG”is used to refer to individual m
301、ember firms within the KPMG organization or to one or more member firms collectively.In many parts of the world,regulated businesses(such as audit and legal firms)are required by law to be locally owned and independent.KPMG member firms do not,and cannot,operate as a corporate multinational.KPMG mem
302、ber firms are generally locally owned and managed.Each KPMG member firm is responsible for its own obligations and liabilities.KPMG International GovernanceKPMG International acts as the coordinating entity for the overall benefit of the KPMG organization.It facilitates audit quality across the orga
303、nization by establishing common policies,processes and standards to be applied across member firms.KPMG Internationals governance bodies are comprised of the Global Council,the Global Board(including its committees),the Global Management Team and the Global Steering Groups.Further detail on each of
304、these is set out below.KPMG International structure and governance 2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technolo
305、gyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsMonitoring and remediationGovernance and leadershipLiving our culture and ValuesGovernance and leadershipTr
306、ansparency Report 2022 I 28KPMG member firms Legal structure and relationship with KPMG InternationalMember firms in the KPMG global organization,are members in,or have other legal connections to,KPMG International,an English private company limited by guarantee.KPMG International acts as the coordi
307、nating entity for the overall benefit of the KPMG member firms but does not provide professional services to clients.Professional services to clients are exclusively provided by member firms who remain solely responsible and liable in respect of these services.Our structure is designed to support co
308、nsistency of service quality and adherence to agreed Values wherever in the world KPMG member firms operate.KPMG member firms commit to conduct their operations in compliance with a common set of Values,standards and service quality expectations.Partners and employees within those firms commit to ac
309、t with integrity at all times.Under their membership and associated agreements with KPMG International,KPMG firms are required to comply with KPMG Internationals policies including quality standards governing how they operate and how they provide services to clients.This includes being professionall
310、y and financially stable,having an ownership,governance and management structure that ensures continuity,stability and long-term success,and being able to comply with policies issued by KPMG International,adopt global strategies,share resources(incoming and outgoing),service multinational clients,ma
311、nage risk,and deploy global methodologies and tools.KPMG firm Heads of Audit have direct responsibility for audit quality.Individual KPMG firms may consist of more than one separate legal entity.If this is the case,each separate legal entity will be responsible only for its own obligations and liabi
312、lities,unless it has expressly agreed otherwise.A firms status as a KPMG firm and its participation in the global organization may be terminated if,among other things,it has not complied with the policies set by KPMG International or any of its other obligations owed to it.KPMG International and the
313、 KPMG firms are not a global partnership,single firm,multinational corporation,joint venture,or in a principal or agent relationship or partnership with each other.No KPMG firm has any authority to obligate or bind KPMG International,any of its related entities or any other member firm vis-vis third
314、 parties,nor does KPMG International or any of its related entities have any such authority to obligate or bind any KPMG firm.Unless otherwise indicated,references in this document to a firm,KPMG firm,member firm or member firms are references to member firms of KPMG International.KPMG International
315、 governance bodiesAs set out above,as at 1 October 2022,the KPMG International Governance Bodies and their functions are as follows:Global CouncilThe Global Council focuses on high-level governance tasks and provides a forum for open discussion and communication among member firms.The Global Council
316、 elects the Global Chairman and also approves the appointment of Global Board members.It includes representation from 53 KPMG firms.Global BoardThe Global Board is the principal governance and oversight body of KPMG International.The key responsibilities of the Global Board include approving global
317、strategy,protecting and enhancing the KPMG brand and reputation,overseeing the Global Management Team,and approving policies with which KPMG firms are required to comply.It also approves the admittance or termination of KPMG firms to/from the global organization.It is led by the Global Chairman,Bill
318、 Thomas,and also includes the Chairman of each of the regions and a number of members who are also member firm Senior Partners.The list of Global Board members,as at 1 October 2022,is set out on the Leadership page of our website.Global Board committeesThe Global Board is supported in its oversight
319、and governance responsibilities by several committees,including:Executive Committee;Governance Committee;Global Quality,Risk Management&Reputation Committee;and Global Audit Quality Committee.The overarching responsibility of the Global Audit Quality Committee is to strive for globally consistent au
320、dit quality across all firms and to oversee those KPMG International activities that relate to improving and maintaining the consistency and quality of audits,assurance engagements and the system of quality management provided by KPMG firms.The Global Head of Audit and the Global Head of Audit Quali
321、ty provide regular reports to the Global Audit Quality Committee.Global Management TeamThe Global Board has delegated certain responsibilities to the Global Management Team.2022 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clien
322、ts.All rights reserved.Introduction and forewordApplying expertise and knowledgeEmbracing digital technologyNurturing diverse skilled teamsAssociating with the right clients and engagementsBeing independent and ethicalAssessing risks to qualityCommunicating effectivelyPerforming quality engagementsM
323、onitoring and remediationGovernance and leadershipLiving our culture and ValuesGovernance and leadershipTransparency Report 2022 I 29These responsibilities include developing the global strategy by working together with the Executive Committee,and jointly recommending the global strategy to the Glob
324、al Board for its approval and overseeing the activities of the Global Steering Groups.The Global Management Team also supports KPMG firms in their execution of the global strategy and KPMG International decisions and policies by member firms,including holding them accountable against their commitmen
325、ts.The list of Global Management Team members is available on the leadership section of our website.Global Steering GroupsThere is a Global Steering Group for each key function and infrastructure area,chaired by the relevant member of the Global Management Team and,together,they assist the Global Ma
326、nagement Team in discharging its responsibilities.They act under delegated authority from the Global Board and oversight by the Global Management Team(GMT).Under the oversight of the GMT,they promote the execution of the global strategy and compliance with KPMG International decisions and policies b
327、y member firms.In particular,the Global Audit Steering Group(GASG)and Global Quality&Risk Management Steering Group(GQ&RMSG)work closely with regional and member firm leadership to:Establish and ensure communication of appropriate audit and quality/risk management policies;Establish and support effe
328、ctive and efficient risk processes to promote audit quality;Promote and support strategy implementation in member firms audit functions,including standards of audit quality;and Assess and monitor audit quality issues,including those arising from quality performance and regulatory reviews,and focus o
329、n best practices that reduce audit quality findings.Global Audit Steering Group(GASG)The GASG is responsible for driving the member firms implementation of KPMGs audit strategy,including standards of audit quality.The GASG works closely with the GQ&RMSG in relation to quality and risk matters relate
330、d to audit.The GASG is chaired by the Global Head of Audit,and its other members are the Heads of Audit from the eight largest KPMG firms and also includes the Heads of Audit for each of KPMGs three regions(the Americas,EMA and ASPAC).Senior individuals with direct reporting responsibilities to the
331、Global Head of Audit also regularly attend and provide reports to the GASG,as well as several standing invitees from key KPMG firms.Global Audit Quality Council(GAQC)The GAQC is chaired by the Global Head of Audit Quality and includes:the Global Head of Audit,Global Head of Quality,Risk Management&R
332、egulatory,Global Head of Regulatory Affairs,Audit,Regional Audit Quality Leaders,country Heads of Audit Quality from 10 of the largest KPMG firms,and the Head of the Global Audit Methodology Group.The GAQC is responsible for:Monitoring and driving progress in global audit quality initiatives to impr
333、ove the consistency and quality of audit execution throughout the organization,including the system of quality management;Considering audit quality matters on an organization-wide basis(including issues arising through quality performance and regulatory reviews as well as root cause analysis),with a specific focus on those issues arising from the largest KPMG firms;Assessing and monitoring progres