Larry Bradley, KPMG’s Global Head of Audit, explains the KPMG perspective on the value of audit, and the steps we are taking to ensure that audit remains relevant for the changing needs of all markets.
Quality, independence and integrity are the cornerstones of audit. We believe that the role we serve as auditors is to be the trusted intermediary between the preparers and users of information; but more broadly, we have an obligation to investor confidence and to society.
The scars of the global financial crisis still run deep and trust remains a critical issue in the global capital markets.
As auditors, we need to be prepared to fundamentally re-think the value of audit in building trust and to identify how audit might evolve to meet the changing needs of all stakeholders.
KPMG has always focused on driving leading-edge thinking and technologies, and the ongoing transformation of audit represents a significant and continuing investment. Our most recent investment in audit transformation is our global, multi-million dollar, multi-year program we are calling Dynamic Audit.
We are taking an approach to audit that not only allows us to continually adapt, but to be proactive in driving change. It is making a difference for KPMG people and the organizations KPMG professionals audit. And we are committed to having this difference translate into a positive change in the value of audit brought to stakeholders.
With a relentless focus on quality, by enhancing the relevance of the audit offering and by applying cutting-edge technologies, KPMG professionals can deliver more of what matters to stakeholders, including investors in capital markets, audit committees, boards, regulators, and management.
There is increasing recognition that a traditional binary audit report is not providing stakeholders with all of the information they need in order to make their decisions.
As auditors, we have broader access to every critical facet of an enterprise than virtually any other profession. For example, conducting audit procedures entails looking across multiple aspects of an organization ranging from IT to human resources, tax, treasury, finance, and control among others. For me, there is no question that we absolutely can, and frankly should, use our knowledge and resources to deliver more than a binary report.
We are publishing our views in an effort to play a constructive part in the ongoing debate about the future of audit. In 2014 we will launch a 'Value of Audit' initiative, designed to broaden the discussion and bring the debate to tangible action.
We are bringing together key stakeholders from business, the investor community, regulators and standards setters to share ideas and build consensus around the future of audit. We believe it is vital that the profession takes the initiative and works with key players in the capital markets to ensure that audit is as relevant, or more so, in the 21st century as it was in the last. And KPMG intends to take a leading role in this effort.