Appendix 1: Audit quality and risk management
KPMG maintains a system of quality control designed to reflect our drive and determination to deliver independent, unbiased advice and opinions, and also meet the requirements of Canadian professional standards. Quality control is fundamental to our business and is the responsibility of every partner and employee. The following diagram summarises the six key elements of our quality control systems. Visit our Audit Quality Resources page for more information including access to our most recent Audit Quality and Transparency Report.
We conduct regular reviews of engagements and partners. Review teams are independent and the work of every audit partner is reviewed at least once every three years.
We have policies and guidance to ensure that work performed by engagement personnel meets applicable professional standards, regulatory requirements and the firm's standards of quality. We do not offer services that would impair our independence.
All KPMG partners and staff are required to act with integrity and objectivity and comply with applicable laws, regulations and professional standards at all times.
- The processes we employ to help retain and develop people include:
- − Assignment based on skills and experience
- − Rotation of partners
- − Performance evaluation
- − Development and training
- − Appropriate supervision and coaching
We have policies and procedures for deciding whether to accept or continue a client relationship or to perform a specific engagement for that client.
Existing audit relationships are reviewed annually and evaluated to identify instances where we should discontinue our professional association with the client.
- Other controls include:
- − Before the firm issues its audit report, Engagement Quality Control
- − Reviewer reviews the appropriateness of key elements of publicly listed client audits
- − Technical department and specialist resources provide real-time support to audit teams in the field
KPMG Audit quality and risk management
Independence, integrity, ethics and objectivity
Personnel management
Acceptance & Independent monitoring continuance of clients / engagements
Engagement performance standards
Independent monitoring
Other risk management quality controls