At KPMG, we have an extensive system of quality controls. These controls apply to all KPMG member firms, ensuring compliance with professional standards, laws and regulations.
The Board of Management has ultimate responsibility for quality. The Board sets the ‘tone at the top’ and makes sure we have the right skills and knowledge within the organisation. Every year, the Board reviews the effectiveness of our quality controls.
Within the business, the Head of Assurance and the Head of Advisory manage and uphold our system of quality controls, assisted by the Country Quality & Risk Management Partner.
The Country Quality & Risk Management Partner oversees risk compliance and quality controls, reports to the CEO and works closely with other member firms across the KPMG network.
All staff are required to understand and abide by quality control policies and procedures. To help them, staff are offered regular training and updates.
In addition, we have a Head of Audit Quality, whose role is to identify possible areas of improvement within our audit practice. The Head of Audit Quality chairs our Audit Quality Improvement Council (AQIC).
ViO – the regulations in force in the Netherlands governing the independence of accountants taking part in assurance engagements
For our assurance business, we conduct regular Quality Performance Reviews, or QPRs. These reviews are carried out by our Internal Audit & Compliance Office, using reviewers at both partner and senior manager level. Engagements are rated ‘satisfactory’, ‘unsatisfactory’ or ‘performance improvement necessary’:
Sufficient evidence has been obtained in line with all relevant requirements (including policies, regulations, professional standards and the firm’s audit methodology). The opinion issued is appropriate and supported by the evidence.
Performance improvement necessary
Auditor’s findings are generally supported by the evidence. The report is not incorrect in any material respects. However, improvements are necessary in one or more significant areas.
Engagement has not been performed in accordance with the firm’s policy or professional standards in significant areas.
In Advisory, QPRs are performed by the Functional Quality & Risk Management Partner. Advisory engagements are rated on two criteria: ‘engagement set-up’ and ‘engagement execution’. Ratings are ‘green’, ‘amber’ or ‘red’ – both green and amber are considered satisfactory.
Internal reviews are conducted throughout the year to assess quality and identify areas of possible improvement. Findings are communicated to professionals within the firm and benchmarked against KPMG’s global quality baselines.
Read more about the results from our latest QPRs in the section Public Trust - Our performance.