Michelle Hinchliffe, Head of audit at KPMG in the UK responds to the results of the FRC’s 2018 Audit Quality Inspection.
Responding to the results of the FRC’s Audit Quality Inspection, Michelle Hinchliffe, head of audit at KPMG in the UK, said:
“We are disappointed that our overall audit quality score for our 2016/17 audits has decreased by four per cent and that the steps taken in previous years have not resulted in the necessary improvements to audit quality. We are taking action to resolve this. We want all of our audits, regardless of size, to meet the highest standards set by the Audit Quality Review. This is why, after taking up my role in October 2017, I commenced a programme to transform our approach to audit with the full support of our Executive Committee and Board.
“In October, we initiated our new Audit Quality Transformation Programme to ensure the highest standards of consistency and rigour are applied across all of our audits. Central to our new approach is greater support and challenge to engagement teams, increased central monitoring of audits at the planning, delivery and completion stages and the introduction of a new requirement for all senior promotion candidates to spend time working within the Audit Centre of Excellence as part of their progression to partner.
“It is important to note that the audit work appraised by the FRC for its 2018 AQR took place principally in respect of 2016 year ends, prior to commencement of this work. We cannot and will not be satisfied with these results and, as a firm, we are already working to put this right.”
For media enquiries, please contact:
Louis Clark, KPMG corporate communications
M: +44 (0)7770 644 382
Follow us on twitter: @kpmguk
KPMG Press Office: +44 (0)207 694 8773
Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and territories and has 200,000 people 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.