KPMG’s audit reports were recognised at the Investment Management Association’s (IMA’s) inaugural Auditor Reporting Awards which took place on Wednesday 19th November 2014. KPMG won all three of the ‘most insightful’ auditor’s report’s awards and was commended in all categories where a runner up was named.
The awards were set out in two main categories: most insightful auditor's report and most innovative. The insightful category recognises the reports that provide the most entity specific and enlightening information, giving investors hooks on which to engage further with the audit committee. The innovative category acknowledges reports which thought differently about how to present findings so that they were set out in the most engaging and readable way. Each award had three sub-divisions: FTSE 100; FTSE 250; and FTSE Small Cap and AIM, with runners up also commended. More details are available.
KPMG’s winning reports in the most insightful award category were: Rolls-Royce Holdings plc in the FTSE 100 sub-division, Rathbone Brothers Plc in the FTSE 250 sub-division and Stobart Group Limited in the FTSE small-cap and AIM sub-division. KPMG’s reports on Standard Chartered PLC, ITV plc, Kazakhmys PLC, Merlin Entertainments plc and New World Resources Plc were all commended.
Tony Cates, head of audit at KPMG in the UK, said: “I am enormously proud to see my team win across all the ‘most insightful’ categories, carrying off half the total awards given out on the night, and to see our work being commended in every category where runners up were named. New Financial Reporting Council requirements brought in last year were a big step forward in increasing transparency on audit, but we went further, taking a bold approach by piloting three audit reports in which we included commentary from the individual audit partner on the audit findings. This discussed qualitative matters in order to help give colour, depth, and so create a better platform for engagement between shareholders and the company. Those pilot reports and others have been recognised in these awards.”
Tony Cates explained the rationale for KPMG’s approach: “Until recently an audit report gave a binary yes/no opinion on a company’s accounts in heavily standardised, generic text. It was boilerplate and there was a lack of transparency as to the auditor’s more detailed findings behind the scenes.
“The financial crisis rightly brought the audit profession sharply into focus, and it remains there. There has been a loss of trust in audits and so in accounts. The profession needed to change. That’s why we took up the new audit report with enthusiasm. But continuing change is needed, and that is why earlier this autumn we set out a new policy of going further by reporting our audit findings where the company engages us to do so.”
Daniel Godfrey, IMA Chief Executive, said: "In June last year, the Financial Reporting Council introduced new, enhanced reporting requirements for the auditor's report in the annual report and accounts of UK listed companies. The success of the new audit standard is of paramount importance to the investment industry. Our awards are held in recognition of this alongside commending greater transparency and excellence in auditor reporting and supporting the industry's progress."
More details about the awards are available.
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Margot Cowhig, KPMG Corporate Communications
T: 0207 694 4246
M: 07920 274856
KPMG Press Office: 0207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.