Supervisory Board activities in 2021/2022

During the past year, the Supervisory Board worked closely with the Board of Management in several important areas:

  • Strategy and value creation (implementation of the firm’s long-term vision and strategy, digital & innovation; business growth; regulatory developments; new business models and services; and the firm’s brand image)

  • Quality and independence (implementation of a vision and strategy for quality; policies, controls and measures to further improve quality; protecting independence and supporting a broader culture of quality within the firm)

  • Culture (helping the Board of Management create a culture that encourages high performance, innovation and integrity; supporting greater openness, diversity and inclusion; encouraging employees to show accountability and leadership)

During the year, the Supervisory Board held nine meetings, each beginning with a closed preparatory session. Attendance at all meetings was 100%. The meetings addressed a number of topics – some part of the Board’s annual planning, others relating to events or developments during the year. Principal topics discussed in 2021/2022 were:

  • Recent social, political and economic developments, including the current war in Ukraine, rising prices, the economic outlook and continued impact of the Covid-19 pandemic

  • Public trust, particularly as this may affect our business, operations, strategy and markets

  • Trust & Growth, with the Board regularly reviewing progress with the firm’s strategy, focusing on quality, sustainability and digital & innovation

  • Integrated annual report, with the Board discussing the external auditor’s report prior to publication (in the presence of both the auditor and the Board of Management).

Supervisory Board committees

The Supervisory Board operates through three committees: Assurance Quality, Audit & Risk and Remuneration & Appointment. The terms of reference (new window) for these committees may be found online. Committee meetings may be attended by subject matter specialists, where necessary.

Assurance Quality Committee (AQC)


Overseeing the firm’s system of controls affecting audit quality, independence, integrity and stakeholder/public interest

Advising the Board of Management on quality performance

Approving the long-term vision and strategy to further improve the approach to quality

All Supervisory Board members are also members of the AQC. Supervisory Board meetings are held in the presence of members of the Board of Management.

2021/2022 meetings and other activities

The AQC held five meetings during the year. The main topics of discussion were:

Recent policy developments in the Dutch accountancy sector, including proposed standards issued by the Quartermasters

KPMG’s North Star project to digitalize audit processes

Outcomes of Quality Performance and Engagement Quality Control Reviews

Annual ratings for the firm’s equity partners with respect to quality

(Results from) inspections conducted by the AFM and PCAOB

Implementation of KPMG Clara and the switch to ISQM1

“KPMG N.V.’s stated ambition is to be a leader in assurance. Part of this is taking an active role in the public debate in the Netherlands over audit quality. During the past year, the AQC has provided regular feedback on developments in the sector and the government’s reform proposals. Being a leader is also about maintaining the highest possible quality standards. As the AQC, we were very glad to see encouraging improvements in both internal and external quality measures. This is a reflection, partly, of quality coaching and the hard work of the firm’s EQCR teams. During the past year, we also oversaw progress with the North Star project for digitizing audit, and discussed international developments with the global head of audit. We were pleased to see new contracts won as part of mandatory firm rotations, and the continued roll-out of the KPMG Clara. We realize the transition to KPMG Clara puts further pressure on work volumes in the short run – an issue we are monitoring closely, particularly with regard to its possible impact on employee well-being and audit quality. We appreciate the measures management have taken on work volume management and rewards, and are happy to see emerging evidence that KPMG Clara leads to higher audit quality in practice.”

Jolande Sap, Chair of the AQC

Audit Risk Committee (ARC)


Monitoring the functioning of the firm’s ERM framework, as well as compliance with laws and regulations, including the EU’s General Data Protection Regulation (GDPR)

Overseeing financing of operations, financial reporting, the firm’s tax position and use of IT

Advising on accounts, budgets and investments, and monitoring delivery of the Trust & Growth strategy

Nominating, selecting, assessing and maintaining regular dialogue with the firm’s external auditor[1]

2021/2022 meetings and other activities

The ARC met eight times in 2021/2022 in the presence of the Chief Operating Officer, Chief Financial Officer and Head of the Internal Audit & Compliance Office. Representatives from the external auditor were also present at several meetings. During the year, one closed meeting took place involving the ARC and the external auditor. The main topics of discussion were:

Business plan, financial and business performance, tax, insurance, ERM reporting and ‘soft controls’

External audit scope, approach and fees, and annual management letter

Selection of new external auditor to start work in 2022/2023

Cybersecurity as part of the firm’s overall digital strategy

Internal audit & compliance plan and Annual Report, M&A strategy and IT general controls

Findings from internal and external audits and follow-up actions

Annual accounts and Annual Integrated Report for 2021/2022

GDPR compliance

  • 1The external auditor is assessed annually, using the following criteria: professional performance, communications, independence and professional criticism, and expertise/composition of the audit team. The auditor’s independence is also (re-) confirmed every year. In its latest assessment, the ARC concluded that BDO Audit & Assurance B.V., the external auditor, met the standards required.

“In the past year, KPMG sustained its profitable growth trajectory, and continued its robust investment program. Regarding the appointment of the Chief Operating Officer and the external auditor, we organized and successfully completed a comprehensive and thorough selection and nomination process, leading to appointments of Marc Broskij and PwC respectively. Cyber security was further enhanced during the year. And, finally, the journey toward reasonable assurance for the Integrated Annual Report was concluded successfully.”

Gosse Boon, Chair of the ARC

Remuneration & Appointment Committee (RAC)


Overseeing remuneration, selections and (re-) appointments

Monitoring compliance with policies related to remuneration and appointments

Reviewing performance of Board of Management members

2021/2022 meetings and other activities

The RAC held six meetings during the year, with the CEO and Chief HR Officer presents for most agenda items. At these meetings, the main topics of discussion were:

Results of the annual Global People Survey (and follow-up actions)

Overview of the firm’s People Agenda, including talent management, culture, inclusion & diversity and psychological safety

Appointment of two new Supervisory Board members and new Chief Operating Officer

Remuneration policy with regard to both members of the Board of Management and Supervisory Board

Overseeing the firm’s policies and procedures for the appointment of partners and directors

Setting of key performance indicators and performance assessment for member of the Board of Management

“As incoming Chair of the RAC, I have been impressed with KPMG N.V.’s professionalism and focus on talent. The people agenda is core to the business and I see KPMG’s values reflected in all the interactions we have had so far as a Supervisory Board. During RAC meetings, we regularly discuss topics like culture, psychological safety, diversity and inclusion, talent development, reward and recognition, retention and attraction, particularly in light of the current scarcity of talent in the market. It is the human touch that really distinguishes KPMG and explains why we’re successful in attracting different talent to the firm. We regularly invite the Young Board Now to RAC meetings to share their views – a highly-valuable dialogue with the next generation and important input to our people agenda.”

Linda Hovius, Chair of the RAC

  • 1The external auditor is assessed annually, using the following criteria: professional performance, communications, independence and professional criticism, and expertise/composition of the audit team. The auditor’s independence is also (re-) confirmed every year. In its latest assessment, the ARC concluded that BDO Audit & Assurance B.V., the external auditor, met the standards required.