Transparency

Report 2024
Driving trust through quality

KPMG International

[Link]/transparency
KPMG Values
KPMG is committed to quality and service excellence in all that we Our Values are:
do, helping to bring our best to clients and earning the public’s trust
through our actions and behaviors both professionally and personally.

Our Values guide our behaviors day-to-day, informing how we act, the
Integrity
We do what is right.
decisions we make, and how we work with each other, our clients and

Excellence
all of our stakeholders across the 142 countries and territories that
we operate in.
We never stop learning
and improving.

Courage
We think and act boldly.

Together
We respect each other and draw
strength from our differences.

For Better
We do what matters.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
Contents
Introduction and foreword 4 Be independent and ethical  22

A system of quality management that sustains audit Perform quality engagements 26

and assurance quality 6

Assess risks to quality 29

Live by our Values-driven culture  8

Monitor and remediate 30

Apply expertise and knowledge 11

Communicate effectively 33
Embrace digital technology 14

Governance and leadership 35

Nurture diverse, skilled teams 16

Appendix 39
Associate with the right clients and engagements  20

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
Evolving our approach to quality Introduction and foreword

A system of quality management that

sustains audit and assurance quality

Live by our Values-driven culture

For over 150 years, KPMG has been a leader in delivering audit and system that is enabling stronger accountability, greater transparency and
assurance services that are essential to the successful working of the ongoing progress. Through a relentless focus, KPMG people are making
Apply expertise and knowledge
capital markets. The quality of our audit and assurance engagements the difference and are instrumental in evolving our approach to quality.
remains a top priority at KPMG with a commitment across the Continuous improvement also means that we learn from shortcomings and
organization to serve our clients, stakeholders and the public with the constantly look for opportunities to enhance the rigor, reliability and quality of Embrace digital technology
highest professional excellence, ethics and integrity. the audit process. KPMG has responsibilities across the world to businesses,
institutions and wider society and we are dedicated to the highest standards Nurture diverse, skilled teams
The needs of the entities that KPMG firms audit around the world are of ethical behavior. By utilizing the breadth of our organization and the
growing and ever evolving with the demands of ESG reporting and the expertise of our people, KPMG firms aim to deliver quality audit and Associate with the right
impact that artificial intelligence will have on those organizations. It’s assurance services that safeguard the public interest. clients and engagements
a moment that demands new levels of trust in disclosure and decision
making. This also necessitates greater transparency in business governance, We encourage you to read this report to learn how we are building an Be independent and ethical
organizational structures and sustainability practices, all driven by new organization that we can be proud of and that our clients, stakeholders and
technologies, regulations and societal expectations. communities can continue to trust. Perform quality engagements

With a focus on clients’ complex issues, KPMG firms are driving sustainable Assess risks to quality
quality through the use of globally consistent audit and ESG assurance
methodologies that are embedded in a state-of-the art, cloud-based audit
Monitor and remediate
platform in KPMG Clara. Across the organization, we’ve accelerated the
integration of generative AI capabilities into KPMG Clara. We are deepening
Communicate effectively
the capabilities of the 95,000 KPMG firms’ auditors by equipping them with
the latest technology to evaluate data and help deliver seamless audits with
real-time visibility. Governance and leadership

Backed by ongoing investment, we’re dedicated to a mindset of continuous Bill Thomas Larry Bradley Appendix
improvement. Aligned with regulatory requirements, KPMG firms across Global Chairman and CEO Global Head of Audit
the organization are operating a consistent and robust quality management KPMG International KPMG International

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 4
Audit quality Introduction and foreword

A system of quality management that

sustains audit and assurance quality

Live by our Values-driven culture

Audit quality is fundamental to maintaining
Apply expertise and knowledge
public trust and is the key measure on which
our professional reputation stands. Embrace digital technology

Nurture diverse, skilled teams

We define “audit quality” as the outcome
Associate with the right
when audits are executed consistently, in line clients and engagements

with the requirements and intent of applicable Be independent and ethical

professional standards, within a strong Perform quality engagements
system of quality management.
Assess risks to quality

All of our related activities are undertaken Monitor and remediate

in an environment of the utmost level of Communicate effectively

objectivity, independence, ethics and integrity. Governance and leadership

Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 5
A system of quality management that Introduction and foreword

A system of quality management that

sustains audit and assurance quality

sustains audit and assurance quality

Live by our Values-driven culture

Apply expertise and knowledge

Embrace digital technology

Consistent and strong controls KPMG International’s global approach to SoQM and ISQM 1
within KPMG firms’ systems of Nurture diverse, skilled teams
quality management (SoQM) Sets policies and procedures to support KPMG firms’ effective SoQM in Associate with the right
help reduce quality issues, accordance with ISQM 1 issued by the IAASB. clients and engagements
drive operational efficiencies,
and enhance transparency and Be independent and ethical
accountability. We are committed Establishes for each SoQM component, globally consistent quality objectives,
to continually strengthening the risks and responses including controls.
Perform quality engagements
consistency and robustness of
the SoQM across KPMG firms. Provides KPMG firms with a globally consistent risk assessment framework to use Assess risks to quality
in identifying incremental KPMG firm specific quality objectives, risks and controls.
Across the global organization, KPMG Monitor and remediate
firms have strengthened the consistency
and robustness of their SoQM to meet Communicate effectively
Supports KPMG firms with guidance, tools and training to drive consistent and
the requirements of the International
effective firm SoQM operation and annual evaluation.
Standard on Quality Management (ISQM)
Governance and leadership
1, issued by the International Auditing and
Assurance Standards Board (IAASB).
Includes monitoring activities over KPMG firms’ SoQM to drive global Appendix
consistency.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 6
The globally consistent approach to ISQM 1 is used by all KPMG’s Global Quality Framework
KPMG firms across the global organization to drive the
consistency, robustness and accountability of responses Introduction and foreword
within KPMG firms’ processes.
A system of quality management that
Live by sustains audit and assurance quality
To provide more transparency on what drives KPMG our
audit and assurance quality, this report is structured Values-driven
around the KPMG Global Quality Framework. For KPMG, Associate culture Live by our Values-driven culture
the Global Quality Framework outlines how we deliver with right Be independent
quality and how every KPMG professional contributes to clients and and ethical Apply expertise and knowledge
engagements
its delivery. The drivers outlined in the framework are the
10 components of the KPMG firms’ SoQM. In line with Monitor
Embrace digital technology
ISQM 1, the KPMG firms’ SoQM also aligns with the
International Code of Ethics for Professional Accountants Nurture diverse, skilled teams
(including International Independence Standards),
issued by the International Ethics Standards Board for Nurture diverse,
skilled teams
Perform quality Embrace digital
technology Associate with the right
Accountants (IESBA Code of Ethics). engagements clients and engagements
Sections 2–11 of the Transparency Report describe how
KPMG firms effectively operate each SoQM component. Be independent and ethical
Remediate
While this KPMG International Transparency Report Perform quality engagements
summarizes KPMG’s globally consistent approach to Communicate Assess risks
effectively to quality
audit quality and assurance, it also applies across the Assess risks to quality
organization, as many KPMG quality management Apply
expertise and
procedures and processes are cross-functional and apply knowledge
Monitor and remediate
equally to other services offered by KPMG firms.
Communicate effectively

Governance and leadership

Throughout this document, “we” “KPMG”, “us”, and “our” refers to the global organization, to KPMG International Limited (“KPMG International”) or to one or more of the member firms of KPMG International Limited, each
of which is a separate legal entity.
Appendix
References to “Firm”, “KPMG firm”, “member firm” and “KPMG member firm” refer to firms which are either: members of KPMG International Limited; sublicensee firms of KPMG International Limited; or entities that are
wholly or dominantly owned and controlled by an entity that is a member or a sublicensee. The overall governance structure of KPMG International Limited is provided in the `Governance and leadership’ section of this report.

KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International Limited or any other member
firm vis-à-vis third parties, nor does KPMG International Limited have any such authority to obligate or bind any member firm.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 7
 Introduction and foreword

Perform
quality
Live by our Values-driven
Perform
quality
Perform
quality
Perform
quality
A system of quality management that
sustains audit and assurance quality

Live by our Values-driven culture

culture
engagements engagements engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Foster the right culture, starting with clients and engagements
tone at the top
• Foster the right culture, It’s not just what we do at Be independent and ethical
starting with tone at the top KPMG that matters — we also Tone at the top

• Define accountabilities, pay attention to how we do it. As a global organization, we recognize that strong
Perform quality engagements

roles and responsibilities The KPMG Values are our core and clear leadership from KPMG International is
critical to set the tone at the top and provides the Assess risks to quality
related to quality and risk beliefs, guiding and unifying our
blueprint for accountability to all KPMG firms.
management actions and behaviors. Shared Monitor and remediate
across all personnel and in KPMG International’s leadership, working with
• Promote robust governance
every country, jurisdiction and regional and KPMG firm leadership, plays a Communicate effectively
structures critical role in establishing our commitment to
territory in which we operate,
quality and the highest standards of professional Governance and leadership
they are the foundation of excellence and ethics. A culture based on
KPMG’s unique culture. integrity, accountability, quality, objectivity, Appendix
independence and ethics is essential in an
organization of firms that carries out audit,
assurance and other professional services on
which stakeholders rely.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 8
All KPMG firms have agreed to follow a common Code, and is required to confirm their compliance In addition to the processes outlined above,
set of Values, standards and service-quality with it. Individuals are strongly encouraged to the Global People Survey provides KPMG
expectations. speak up if they see something that makes them International leadership and KPMG firms’ Introduction and foreword
uncomfortable or is not in compliance with the leadership with insights related to upholding the
KPMG International’s leadership helps to drive Code or our Values. KPMG Values, employee and partner attitudes A system of quality management that
an awareness that everyone in the organization to quality, leadership and tone at the top. sustains audit and assurance quality
has a responsibility for quality, if they are involved Everyone at KPMG is required to report any
in supporting firms’ SoQM, performing an audit, activity that could potentially be illegal or in Live by our Values-driven culture
assurance or any client engagement across tax violation of our Values, our policies, professional KPMG’s Global Values Week — Building a
and advisory. standards and applicable laws or regulations. values-led firm of the future
Apply expertise and knowledge
Kicking-off FY 2024, nearly every country and
To safeguard this principle of holding each other Embrace digital technology
Clear Values and a strong Code of Conduct territory in KPMG’s global network came together
accountable, each KPMG firm has agreed to
to celebrate Our Values during a week-long series of
establish, communicate and maintain clearly Nurture diverse, skilled teams
At KPMG, our Values lie at the heart of the way events. Global Values Week engaged KPMG people
defined channels to allow KPMG personnel
we do things. To do the right thing, the right in dialogue around our five Values and the role they
and third parties to make inquiries about, raise
way, at the right time. They form the foundation play in our everyday work. This organization-wide Associate with the right
concerns in relation to, provide feedback on, and
of a resilient and ethical culture ready to meet celebration was followed by the launch of a Values clients and engagements
notify reportable matters without fear of reprisal
challenges with integrity, so that people in Immersion initiative for KPMG firms that included
in accordance with applicable laws or regulations.
KPMG firms never lose sight of our principal support of leader-led group sessions focused on Be independent and ethical
responsibility to serve the public interest. The KPMG International hotline is a mechanism living our Values under pressure.
for KPMG personnel, clients and other third Perform quality engagements
We are committed to the highest standards of
parties to confidentially report concerns they have
professional behavior in everything we do. Ethics The KPMG multidisciplinary model
relating to KPMG International, activities of KPMG Assess risks to quality
and integrity are core to who we are at KPMG and
firms or KPMG personnel. KPMG International The KPMG global organization is at its
within our Global Code of Conduct (the Code), Monitor and remediate
considers how to respond to each report received strongest when its over 275,000 people across
we outline the responsibilities all KPMG people
through the hotline and, where necessary, 142 countries and territories, aligned behind a
have to each other, to clients and to the public. It
investigates and takes appropriate action. common set of values, are working together to Communicate effectively
shows how our Values and Purpose inspire our
provide quality services to some of the most
greatest aspirations and guide all of our behaviors All KPMG firms and personnel are prohibited important organizations in the world, from the Governance and leadership
and actions. It defines what it means to work at from retaliating against individuals who have the public sector to finance to healthcare. Regardless
and be part of the KPMG organization, as well as courage to speak up in good faith. Retaliation is a of the sector or industry they operate in, KPMG’s Appendix
our individual and collective responsibilities. serious violation of the Code and any person who people leverage multidisciplinary knowledge and
takes retaliatory action will be subject to their experience from across the organization to deliver
Everyone at KPMG can expect to be held
firm’s disciplinary policy. independent and rigorous audit and assurance,
accountable for their behavior, consistent with the
tax and consulting services to clients and

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 9
stakeholders, earning their trust by meeting our • Establish and support effective and Promote robust governance structures
commitment to deliver professional excellence. efficient processes to promote audit and
We firmly believe that our multidisciplinary model assurance quality. Introduction and foreword
The overall governance structure of KPMG
is the best way to serve clients and is essential to
• Promote and support the implementation International and further detail on the KPMG A system of quality management that
delivering high quality.
of our strategy in KPMG firms’ audit International global leadership groups are sustains audit and assurance quality
functions, including standards of audit and provided in the ‘Governance and leadership’
Define accountabilities, roles and assurance quality. section of this report.
Live by our Values-driven culture
responsibilities related to quality and
• Assess and monitor audit and assurance Apply expertise and knowledge
risk management Responsibilities of KPMG firms
engagement quality, including issues arising
from quality performance and regulatory KPMG firms have agreed to comply with KPMG Embrace digital technology
Leadership responsibilities for quality reviews, and seek to identify best practices to International’s policies, including quality standards
and risk management improve audit and assurance quality. governing how they operate and how they provide Nurture diverse, skilled teams
services to clients to compete effectively. This
KPMG International’s leadership plays a critical includes having a firm structure that ensures
role in establishing and driving the quality agenda Taking responsibility for audit quality at Associate with the right
continuity and stability, and being able to adopt clients and engagements
for the global organization. In respect to audit the KPMG firm level global strategies, share resources (incoming and
quality, our Global Head of Audit and Global Head outgoing), service multinational clients, manage
of Audit Quality provide reports to the Global While KPMG International creates the global Be independent and ethical
risk and deploy global methodologies and tools.
Audit Quality Committee of the Global Board framework and policies for audit and assurance
and have responsibility for oversight of audit and quality, individual KPMG firm leadership is Perform quality engagements
assurance quality across the global organization. responsible for the delivery of that quality within Each KPMG firm takes responsibility for
their firm. Assess risks to quality
its management and the quality of its
Within KPMG International, a number of global
Each KPMG firm is responsible for establishing work and commits to a common set of
steering groups drive the execution of the quality Monitor and remediate
and maintaining a SoQM. Within each KPMG KPMG Values
strategy. Each of these global groups have
specific areas of focus, and work closely with firm, there is a Head of Audit, who has primary
A firm’s status as a KPMG member firm and its Communicate effectively
one another on quality matters, along with global, responsibility for audit quality and is supported
participation in the KPMG organization may be
regional and KPMG firm leadership, to: by the firm’s Risk Management Partner (RMP) in
terminated if, among other things, it has not complied Governance and leadership
maintaining and monitoring a SoQM.
with the policies set by KPMG International or any of
• Establish and ensure communication of its agreements with KPMG International. Appendix
appropriate audit, assurance, quality and risk
management policies. Further detail on KPMG International’s governance
structure can be found in the ‘Governance and
leadership’ section of this report.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 10
 Introduction and foreword

Perform
quality
Apply expertise and Perform
quality
A system of quality management that
sustains audit and assurance quality

Live by our Values-driven culture

knowledge
engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Methodology aligned with clients and engagements
professional standards, laws and
• Methodology aligned with Across the global organization, regulations Be independent and ethical
professional standards, laws KPMG is committed to
and regulations continuing to build on our Consistent audit and assurance Perform quality engagements

• Technology-enabled professionals’ technical methodology and tools

Assess risks to quality
standardized methodology expertise and knowledge
The KPMG audit and assurance methodology,
and guidance recognizing its fundamental role tools and guidance drive a consistent approach to Monitor and remediate
in delivering quality audit and planning, performing and documenting audit and
• Deep technical expertise assurance procedures. Key elements include: Communicate effectively
assurance services.
and knowledge
• Meeting the applicable standards, including Governance and leadership
• Quality and risk International Standards on Auditing (ISA),
management policies standards issued by the Public Company Appendix
Accounting Oversight Board (PCAOB), the
American Institute of CPAs (AICPA), and
the International Standards on Assurance
Engagements (ISAE), and are supplemented

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 11
 by KPMG firms to comply with additional Driving consistency and quality through Our commitment to audit and assurance
local auditing standards and regulatory or the KPMG Delivery Network quality by responding to significant
statutory requirements. Introduction and foreword
external events and conditions
The KPMG Delivery Network, (KDN) is a network
• Identifying risks of material misstatements and of global delivery centers offering additional Significant external events and conditions, such A system of quality management that
the necessary audit response. resources and specialist capacity and capability as the impacts arising from climate change, sustains audit and assurance quality
to KPMG firms. Driving greater consistency and geopolitical events, volatile interest rates and
• Use by KPMG audit and assurance quality, these global delivery centers leverage elevated levels of inflation may have significant Live by our Values-driven culture
professionals to drive consistent interpretation technology and offer KPMG firms standardized financial statement implications, increasing
and application of ISAs and ISAEs. procedures and solutions. complexity, subjectivity and uncertainty for Apply expertise and knowledge
matters such as management’s going concern
KPMG’s audit and assurance methodologies assessment, asset impairments and asset Embrace digital technology
emphasize applying appropriate professional Deep technical expertise and valuations. Guidance is available to assist
skepticism in the execution of procedures knowledge engagement teams in KPMG firms address Nurture diverse, skilled teams
and require compliance with relevant ethical the financial reporting, auditing and reporting
requirements, including independence. The related matters arising from the impacts of these
methodologies continually evolve to reflect Access to specialist networks Associate with the right
significant external events and conditions. clients and engagements
new and revised audit and assurance standards
Specialist experience is an increasingly important
and requirements, as well as to keep pace with KPMG maintains an online financial reporting
part of the modern audit and is a key feature Be independent and ethical
innovative and technological advances that drive resource center that highlights the potential
of our multidisciplinary model. KPMG firm
quality and efficiency. financial statement implications of matters arising
engagement teams have access to a network of Perform quality engagements
from significant external events. KPMG guidance
KPMG specialists to consult — either within their
is updated as new significant accounting, auditing
Technology-enabled standardized firm or in other KPMG firms. These specialists Assess risks to quality
and reporting issues emerge.
receive the training they need to ensure they have
methodology and guidance the competencies, capabilities and objectivity to
Monitor and remediate
appropriately fulfill their role on KPMG audits.
Licensing and requirements for IFRS®
The KPMG standardized methodology and
The need for specialists to be assigned to an
Accounting Standards and US GAAP Communicate effectively
guidance are embedded within KPMG Clara, the
KPMG smart audit and assurance platform, and audit engagement in areas such as information engagements
assist KPMG firm engagement teams in meeting technology, tax, treasury, actuarial, forensic Governance and leadership
Licensing
the ever-changing landscape of corporate and valuations is considered as part of the
reporting and related audit and assurance audit engagement acceptance and continuance All KPMG professionals are required to comply Appendix
requirements. process, as well as during the planning and with applicable professional license rules and
conduct of the engagement. satisfy the Continuing Professional Development
requirements in the jurisdiction where they

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 12
practice. KPMG International and KPMG firm and, if appointed, the EQC reviewers) assigned to • Invested in programs to strengthen KPMG
policies and procedures are designed to facilitate the engagement have completed relevant training professionals’ skills and experience to deliver
compliance with license requirements. KPMG and that, collectively, the engagement team has high-quality ESG assurance engagements Introduction and foreword
firms are responsible for ensuring that audit sufficient experience to perform the engagement and meet client needs, including access to
professionals working on engagements have or has implemented appropriate safeguards to technical ESG reporting and assurance subject A system of quality management that
appropriate audit, accounting and industry address any shortfalls. matter professionals, and KDN. sustains audit and assurance quality
knowledge, and experience in the local
predominant financial reporting framework. Live by our Values-driven culture
ESG Assurance quality Quality and risk management
Requirements — IFRS® Accounting Standards policies Apply expertise and knowledge
and US GAAP engagements KPMG is committed to fulfilling our public
interest role in providing robust assurance that
can benefit investors and other stakeholders. KPMG International has global quality and risk Embrace digital technology
Specific requirements apply to partners,
managers and engagement quality control We believe the same level of professionalism, management policies that all KPMG firms have
(EQC) reviewers working on IFRS® Accounting quality, consistency and trust should apply to agreed to apply to themselves and their personnel Nurture diverse, skilled teams
Standards engagements in jurisdictions where ESG reporting as to financial data. We have made and are consistent with ISQM 1 where applicable.
IFRS® Accounting Standards are not the significant investments in putting ESG at the heart Associate with the right
predominant financial reporting framework. of the organization and remain steadfast in our clients and engagements
commitment to serving the public interest. As part
Similar policies apply to engagements performed of the continuous improvement approach to quality, Be independent and ethical
outside the US to report on financial statements in 2024 the following updates were implemented:
or financial information prepared in accordance Perform quality engagements
with US GAAP and/or audited in accordance with • Revised methodology in accordance with the
US auditing standards, including reporting on the Corporate Sustainability Directive (CSRD), Assess risks to quality
effectiveness of the entity’s internal control over the European Sustainability Reporting
financial reporting (ICOFR). Standards (ESRS) and EU Taxonomy Monitor and remediate
disclosure requirements.
These provide that, at a minimum, all partners,
Communicate effectively
managers and, if appointed, the EQC reviewers • Enhanced the ESG Assurance methodology
(and for engagements conducted in accordance and KPMG Clara workflow — Assurance
training and released learning programs Governance and leadership
with US GAAP and/or US auditing standards
engagements, the engagement partner, focused on the ISSB standards and the ESRSs.
Appendix
engagement manager, engagement in-charge

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 13
 Introduction and foreword

Perform
quality
Embrace digital Perform
quality
Perform
quality
A system of quality management that
sustains audit and assurance quality

Live by our Values-driven culture

technology
engagements engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

KPMG Clara clients and engagements

• KPMG Clara At KPMG, we are anticipating Our intelligent audit and assurance technology Be independent and ethical
• Intelligent, standards- the technologies that can shape platform KPMG Clara integrates new and
our near future and are driving emerging technologies, with advanced Perform quality engagements
driven audit and assurance capabilities that leverage data science, audit
workflows an ambitious innovation agenda. automation and data visualization and harness the Assess risks to quality
KPMG continues to transform the power of artificial intelligence (AI). KPMG Clara
• Digital data and emerging
audit and assurance experience enables new insights by helping auditors to see Monitor and remediate
technologies meaningful patterns across a business, whether
for KPMG professionals and
conducting risk assessment, tracing transactions
clients. The alliances and leading through a complex revenue process or simply
Communicate effectively
technologies used across the reconciling the accounts.
Governance and leadership
global organization are enhancing
A fully digital approach is integral to how KPMG
audit quality by increasing our Appendix
firms perform quality audit and assurance
ability to identify and respond to engagements and interact with their clients. Policies
the issues that matter. and guidance are in place to establish and maintain
appropriate processes and controls regarding the

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 14
development, evaluation and testing, deployment audit, we have built KPMG Clara as a future-ready focusing audit attention on risk areas that require
and support of technology in KPMG audits. platform that is ready to harness the innovations follow up and providing greater assurance over
of today and tomorrow. the complete data set. Introduction and foreword

Intelligent, standards-driven audit As one example, generative AI has been integrated As KPMG works to harness the power of AI, A system of quality management that
and assurance workflows directly into the KPMG Clara audit workflow, we remain equally committed to upholding sustains audit and assurance quality
allowing KPMG firms’ professionals, where ethical standards for AI solutions that align with
permitted by clients and applicable laws, to more our Values and professional standards, and that Live by our Values-driven culture
As a scalable, intuitive cloud-based platform,
deeply interrogate audit documentation, search foster the trust of KPMG firms’ clients, people,
KPMG Clara is driving globally consistent
and apply KPMG’s knowledge base, and benefit communities and regulators. Apply expertise and knowledge
execution across all KPMG firms. It enables
from the productivity-boosting capabilities of AI.
delivery of KPMG’s audit and assurance KPMG Trusted AI is our strategic approach and
methodologies through data-enabled workflows, Embrace digital technology
Technologies such as KPMG Clara analytics framework to designing, building, deploying and
which are aligned with the applicable audit and AI transaction scoring mean KPMG firms’ using AI solutions in a responsible and ethical way
assurance standards, providing an empowered Nurture diverse, skilled teams
audit teams can apply AI and machine learning to help accelerate value with confidence.
and seamless experience to auditors. algorithms to identify higher-risk transactions —
Associate with the right
clients and engagements
Digital data and emerging
technologies • Data and AI-driven • “Risk-to-response” Be independent and ethical
• Audit & Assurance Dig analytics
ita
including ESG w lA • Gen AI integration
flo Perform quality engagements
Our vision of the future • Global, risk-based • Search knowledge base

ud
Effi

or
y

iti
c
lit

W
methodology Assess risks to quality

ng
KPMG is committed to continuously evolving its

ie
a

nc
Qu
KPMG
approach to quality and, as a technology-driven

y
organization, is harnessing innovative capabilities Monitor and remediate
to deliver high-quality services.

Fully deployed across KPMG firms, KPMG

Clara Communicate effectively

Con
Clara is the global platform for KPMG Audit and

on
Governance and leadership

ts
ne
tiv

gh

i
empowers KPMG firms’ auditors to offer deeper • Enhanced two-way i • Real-time alerts

rat
c
ity ns
Gr
I

bo
insights, fresh perspectives and improved audit communication and task tracking
ou
Appendix
Au l

la
p
and assurance quality to the entities they audit. o
• Tailored scoping d it tC • Interaction with
n
• Group audit C li e audit team
Signaling our commitment to continual innovation,
connectivity • Access to insights
enhancement, and further digitization of the

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 15
 Introduction and foreword

Perform
quality
Nurture diverse, skilled A system of quality management that
sustains audit and assurance quality

Live by our Values-driven culture

teams
engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Recruit appropriately qualified and clients and engagements
skilled people with diversity of
• Recruit appropriately qualified Across the global specialist skills, perspective and Be independent and ethical
and skilled people with diversity organization KPMG experience
of specialist skills, perspective people make the real Perform quality engagements
and experience difference and are One of the key drivers of quality is ensuring
that KPMG professionals have the appropriate Assess risks to quality
• Assign appropriately qualified team instrumental in shaping
skills and experience, motivation and purpose
the future of audit and to deliver high-quality audit and assurance Monitor and remediate
• Invest in data-centric skills —
assurance at KPMG. We services. This requires the right recruitment,
including AI solutions
put quality and integrity development, reward, promotion and assignment Communicate effectively
• Focus learning and development at the core of our audit of professionals.
on technical expertise, professional Governance and leadership
practice. KPMG auditors
acumen and leadership skill have diverse skills and Recruitment Appendix
• Recognize quality capabilities to address
KPMG has invested in understanding how we can
complex problems. attract the talent we need now and in the future
across the organization.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 16
KPMG International provides KPMG firms Engage. Educate. Empower was the theme of KPMG International. The connection between
with guidance and consultation on sourcing KPMG’s Global IDE Super Summit for 2024 and performance and reward is achieved by assessing
high-quality talent with the necessary thousands of colleagues joined the celebration of performance across a peer group to inform Introduction and foreword
skills, expertise and qualifications to deliver togetherness uniting the KPMG IDE communities reward decisions. Reward decisions are based on
organizational objectives and with the ability and allies through a landmark global event, the consideration of both personal and individual A system of quality management that
to make a positive contribution to the Values, with more ways to learn from each other, join firm performance. sustains audit and assurance quality
capabilities and goals of the organization. conversations and share ideas. Learn more about
the KPMG commitment to have an inclusive The extent to which our people feel their Live by our Values-driven culture
Additionally, KPMG firms perform candidate culture built on trust in KPMG International: performance has been reflected in their reward
application screening that is based on fair and Our Impact Plan. is measured through the annual Global People Apply expertise and knowledge
job-related criteria to ensure that candidates Survey, with action plans developed by KPMG
possess the appropriate skills and experience to firms as required. Embrace digital technology
perform competently and are suitable and best Health and well-being
placed for their roles. KPMG firms also carry out The results of performance evaluations inform Nurture diverse, skilled teams
Across the organization, we are committed the promotion and remuneration of partners and
rigorous reference and background checks on
to protecting the health of our people, both employees and, in some cases, their continued
prospective partners and employees subject to
physically and mentally, and providing an Associate with the right
legal and regulatory requirements. association with KPMG.
environment of empathy and support that allows clients and engagements
our people to thrive and deliver high-quality work
Inclusion, diversity and equity programs to our clients. Professional services can be a Assign an appropriately qualified Be independent and ethical
fast-paced and demanding environment, so we
team
Inclusion, Diversity and Equity (IDE) underpins are focused on creating a culture where people Perform quality engagements
the KPMG Value of ‘Together’ and is vital to can be open about their well-being — and reach
inspiring confidence and empowering change — out for support when they need it. A critical driver of quality management is the Assess risks to quality
our Purpose. selection of the engagement team to deliver
effective and high-quality audit and assurance
Monitor and remediate
Fostering a culture that welcomes everyone — Reward and promotion services. KPMG firms have agreed to put
without exception — requires purposeful work. procedures in place to assign engagement
KPMG firms have compensation and promotion Communicate effectively
KPMG International issues guidance on global partners and other professionals to a specific
best practices related to those areas where an policies that are informed by market data and are engagement on the basis of their skill sets,
evolved IDE focus can help make the greatest clear, simple, fair and linked to the performance relevant professional and industry experience, and Governance and leadership
impact through the creation of an inclusive and talent review process. Such policies help the nature of the assignment or engagement.
environment — including hiring, compensation, audit teams understand what is expected of Appendix
performance evaluation and promotions. them, including the audit quality accountabilities Function heads are responsible for the partner
outlined in audit role profiles and a mandatory assignment process. Key considerations include
audit quality goal that are issued globally by partner experience and capacity — based on an

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 17
annual partner portfolio review — to perform the Investing in data-centric skills, Focus learning and development
engagement considering the size, complexity and including AI solutions on technical expertise, professional
risk profile of the engagement and the type of Introduction and foreword
support to be provided (i.e. the engagement team
acumen and leadership skills
composition and specialist involvement). KPMG is strategically investing in prospective A system of quality management that
talent by partnering with world-class institutions At KPMG, we are committed to developing a sustains audit and assurance quality
Audit engagement partners are responsible to sustain our strong leadership, while also culture of continuous learning — in line with
for determining that sufficient and appropriate looking forward to cultivating the skills and our desire to provide access to learning for a Live by our Values-driven culture
resources to perform the engagement are capabilities that will be needed in the future. lifetime — where KPMG partners and employees
assigned or made available to the engagement KPMG firms are recruiting and training can continually enhance their competencies and Apply expertise and knowledge
team in a timely manner, taking into account professionals who specialize in software, skills through functional, ethical and accelerated
the nature and circumstances of the audit cloud capabilities and AI and who can bring learning. With a focus on enabling excellence, Embrace digital technology
engagement, KPMG policies and procedures, leading technology capabilities to our smart this continuous learning culture helps people in
professional standards and applicable legal and audit platform. KPMG firms make the difference for both clients Nurture diverse, skilled teams
regulatory requirements and any changes that may and themselves.
arise during the engagement. In 2024, organization-wide AI learning programs,
‘24 hours of AI’, were held where, every hour on Associate with the right
the hour, colleagues from around the globe took Commitment to technical excellence clients and engagements
If the right resource is not available within the
KPMG firm, each firm has access to a network the opportunity to learn about the latest KPMG and quality service delivery
of highly skilled KPMG professionals from other global AI tools and the advanced AI solutions that Be independent and ethical
KPMG firms have been tailored for Audit and Assurance, Tax All KPMG professionals are provided with the
and Advisory functions; to take part in practical technical training and support they need to Perform quality engagements
‘prompt crafting’ workshops to improve AI skills; perform their roles. This includes access to
Audit role profiles to drive quality and to be upskilled on KPMG’s principles for internal specialists and the professional practice Assess risks to quality
responsible use of AI. department for consultation.
Driving a consistent approach to accountability
Monitor and remediate
for audit quality, KPMG International issues a KPMG firms provide training on a wide range of
set of role profiles to KPMG firms articulating technologies to help ensure that professionals Lifetime learning strategy
Communicate effectively
the technical and behavioral competencies, and not only meet the highest professional standards,
individual levels of accountability for contributing Rapid advances in technology have made
but are also educated in new technologies. With
to audit quality and the SoQM. The role profiles education and reskilling more important than ever. Governance and leadership
this approach, KPMG firms are bringing together
provide KPMG personnel involved in audit delivery Providing our people across the organization with
the right people with the right skills and the right
a clear articulation of their role and are updated opportunities to learn and develop their careers Appendix
technology to perform quality audits.
annually to support the focus on continuous is a key pillar of KPMG’s Global People strategy.
improvement. To connect the role profiles to goal Annual training priorities for development and
setting, a mandatory audit quality goal is in place delivery are identified by the audit learning and
for those covered by the role profiles.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 18
development groups at the global, regional and, Recognize quality At the same time, KPMG is driving a shift in our
where applicable, KPMG firm level. Minimum performance-driven culture, supported by and
learning requirements for audit professionals in enacted through leading technology that allows Introduction and foreword
Personal development
KPMG firms are established annually. us to embed audit quality into the assessment of
performance and the decisions around reward, A system of quality management that
KPMG’s approach to performance development, sustains audit and assurance quality
The Audit Career Journey Guide was launched as well as drive consistency across the global
known as ‘Open Performance Development’, is
in September 2023 to support career mobility organization.
built around the ‘Everyone a Leader’ performance
within member firms. This is a proactive resource Live by our Values-driven culture
principles which are supplemented by the global
intended to enable our people to explore various Quality and compliance metrics are considered in
audit technical core competencies to provide a
career options, through traditional and emerging the overall performance assessment, promotion Apply expertise and knowledge
holistic view of expectations. The performance
routes, within Audit and related business areas. and remuneration of partners. These evaluations
development approach includes:
are conducted by performance managers and Embrace digital technology
partners who are able to assess performance.
Ongoing mentoring and on-the-job • Audit role profiles (including role profiles
specific to audit quality accountabilities and Nurture diverse, skilled teams
coaching
responsibilities).
Learning is not confined to a single approach — Associate with the right
rich learning experiences are available when • A goal library (including a mandatory audit clients and engagements
needed through coaching and just-in-time quality goal applicable to everyone covered by
learning, and aligned with job-specific role the audit role profiles and additional optional Be independent and ethical
profiles and learning paths. audit quality content).
Perform quality engagements
Mentoring and on-the-job experience play • Standardized review forms (with provision for
key roles in developing the personal qualities audit quality ratings). Assess risks to quality
important for a successful career in auditing,
including professional judgment, technical Open Performance Development is linked to
Monitor and remediate
excellence and instinct. KPMG’s Values and designed to articulate what
is required for success — both individually and
Communicate effectively
KPMG firms support a continuous learning collectively. We know that by being clear and
environment where KPMG partners and consistent about the behaviors and competencies
we expect and rewarding those who demonstrate Governance and leadership
employees contribute to building the team
capacity, coaching other team members and them, we will continue to drive a relentless focus
on quality. Appendix
sharing experiences while directing, supervising
and reviewing their work.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 19
 Introduction and foreword

Perform
quality
Associate with the right
Perform
quality
Perform
quality
Perform
quality
A system of quality management that
sustains audit and assurance quality
Perform
quality
Live by our Values-driven culture

clients and engagements

engagements engagements engagements engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Global client and engagement clients and engagements
acceptance and continuance policies
• Global client and engagement Rigorous global client and Be independent and ethical
acceptance and continuance engagement acceptance and KPMG International’s global client and
policies continuance policies are vital to engagement acceptance and continuance policies Perform quality engagements
and processes are designed to help KPMG
• Accept appropriate clients being able to provide high-quality
firms identify and evaluate potential risks prior Assess risks to quality
and engagements professional services. to accepting or continuing a client relationship or
performing a specific engagement. Monitor and remediate
• Manage portfolio of clients
KPMG firms evaluate whether to accept or Communicate effectively
continue a client relationship or perform a
specific engagement. Where client/engagement
Governance and leadership
acceptance (or continuance) decisions pose
significant risks, additional approvals are required.
Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 20
Accept appropriate clients and Where a KPMG firm is providing audit services Withdrawal process
engagements for the first time, additional independence
evaluation procedures are performed, including a If a KPMG firm comes to a preliminary Introduction and foreword
review of any non-audit services provided to the conclusion that indicates it should withdraw
Client evaluation client and of other relevant business, financial and from an engagement or client relationship, it A system of quality management that
personal relationships. must consult internally and identify any required sustains audit and assurance quality
KPMG firms’ evaluation of a prospective client legal, professional and regulatory responsibilities
includes an assessment of the client’s risk profile Similar independence evaluations are performed with respect to that relationship. The firm will Live by our Values-driven culture
and background information on the client, its key when an existing audit client becomes a public also have to consider further communications
management, directors and owners. If necessary, interest entity or additional independence with those charged with governance and any Apply expertise and knowledge
the evaluation includes additional information restrictions apply following a change in the other appropriate authority as required under its
required to satisfy applicable legal/regulatory circumstances of the client. professional obligations. Embrace digital technology
requirements.
Any potential independence or conflict of Nurture diverse, skilled teams
interest issues are documented and resolved Manage portfolio of clients
Engagement evaluation prior to acceptance.
Associate with the right
KPMG firms consider a range of factors when KPMG International and KPMG firms have clients and engagements
A prospective client or engagement will be policies and procedures to enable a KPMG
evaluating each prospective engagement including:
declined if a potential independence or conflict firm to monitor the workload and availability of
issue cannot be resolved satisfactorily in Be independent and ethical
• Potential independence and conflict of engagement partners, managers and staff, and
interest issues. accordance with professional standards and personnel to provide sufficient time to complete
our policies, or if there are other quality and risk Perform quality engagements
their responsibilities.
• Intended purpose and use of engagement issues that cannot be appropriately mitigated.
deliverables. Engagement partners are responsible for Assess risks to quality
determining that members of the engagement
• Public perception.
Continuance process Monitor and remediate
team collectively have the appropriate
KPMG firms undertake an annual re-evaluation competence and capabilities, including sufficient
• Whether the services would be unethical or time, to successfully perform the engagement Communicate effectively
of all audit clients to identify risks in relation to
inconsistent with our Values. continuing association and mitigating procedures in accordance with professional standards
that need to be put in place. and regulatory and legal requirements. For Governance and leadership
In addition, the evaluation of an audit engagement more information, see section ‘Assigning an
includes an assessment of the competence of the In addition, clients are required to be re-evaluated appropriately qualified team’. Appendix
client’s financial management team and the skills if there is an indication that there may be a
and experience of KPMG professionals. change to their risk profile.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 21
 Introduction and foreword

Perform
quality
Be independent and Perform
quality
Perform
quality
Perform
quality
A system of quality management that
sustains audit and assurance quality
Perform
quality
Live by our Values-driven culture

ethical
engagements engagements engagements engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Act with integrity and live our Values clients and engagements

• Act with integrity and live Auditor independence is a We know that trust is earned by doing the right Be independent and ethical
our Values cornerstone of international thing. At KPMG we are committed to the highest
professional standards and standards of professional behavior throughout Perform quality engagements
• Maintain an objective, the global organization in everything we do.
independent and ethical regulatory requirements. Ethics and integrity are core to who we are. Assess risks to quality
mindset, in line with our Within our Global Code of Conduct, we outline
code of conduct and policies the responsibilities KPMG people have to each Monitor and remediate
other, clients and the public. It shows how our
• Have zero tolerance of Values inspire our greatest aspirations and guide
Communicate effectively
bribery and corruption our behaviors and actions. KPMG firms provide
annual training to all partners and employees on
Governance and leadership
the Code of Conduct, anti-bribery and corruption,
and compliance with laws, regulations and
professional standards. Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 22
KPMG’s ethical decision-making framework Maintain an objective, independent ‘audit client’ includes its related entities or
CARE (Consider, Assess, Respond, Evolve) and ethical mindset affiliates), their management, directors and,
is centered on building and reinforcing trust, where required, significant owners. All KPMG Introduction and foreword
and supports our Purpose, Values and Code partners — irrespective of their firm or function —
of Conduct. A model shared across the KPMG International’s independence policies are generally prohibited from owning securities of A system of quality management that
organization, CARE helps KPMG people to make and procedures incorporate the IESBA Code of any audit client of any KPMG firm. sustains audit and assurance quality
ethical decisions, especially when faced with a Ethics, covering areas such as firm and personal
challenging situation or ethical dilemma, and it independence, firm financial relationships, KPMG firms use a web-based independence Live by our Values-driven culture
also reminds them that they do not have to make employment relationships, partner rotation and compliance system to assist KPMG professionals
these decisions alone. approval of audit and non-audit services. in complying with personal independence Apply expertise and knowledge
investment policies. The system facilitates
Policies are supplemented at KPMG firms to help monitoring by identifying and reporting Embrace digital technology
ensure compliance with additional standards
CARE issued by national or applicable regulatory bodies.
impermissible investments and other non-
compliant activity (i.e. late reporting of an Nurture diverse, skilled teams
Ethical decision-making framework investment acquisition).
Each KPMG firm’s Ethics and Independence
Partner (EIP) is responsible for communicating Associate with the right
KPMG firms monitor partner and manager
Consider
what is the
and implementing KPMG policies and
procedures and ensuring that any additional
compliance with this requirement as part
of independence compliance audits of their
clients and engagements

local independence policies and procedures are professionals. Be independent and ethical
issue
established and effectively implemented.
KPMG International provides guidance and Perform quality engagements

Assess
options to address
Automated tools identify potential independence
and conflict of interest issues and facilitate
compliance with these requirements. KPMG firm
required procedures relating to the audit and
inspection by KPMG firms of personal compliance Assess risks to quality
with KPMG independence policies. This includes
the situation compliance with independence requirements sample criteria, including the minimum number of Monitor and remediate
is part of the KPMG Quality & Compliance professionals to be audited annually.
Evaluation (KQCE) program. Communicate effectively
Respond
with decision
Employment relationships Governance and leadership
Personal financial independence
Any KPMG professional providing services to
KPMG firms and KPMG personnel are required an audit or assurance client is required to notify Appendix
to be free from prohibited financial interests in,
Evolve
the KPMG firm’s EIP if they intend to enter into
and prohibited financial relationships with, KPMG employment negotiations with that client. For
firm audit and assurance clients (by definition, partners, this extends to any audit client of any
and reflect

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 23
KPMG firm that is a public interest entity. Specific other applicable independence requirements, KPMG’s mandatory conflicts and independence
prohibitions and, in some instances, cooling off such as those promulgated by the US Securities checking system supports KPMG firm
periods, apply to accepting certain roles at audit and Exchange Commission (SEC). compliance with independence requirements. Introduction and foreword
and assurance clients. Certain information on all prospective
engagements, including detailed service A system of quality management that
Business acquisitions, admissions and descriptions, deliverables and estimated sustains audit and assurance quality
Firm financial independence investments fees, are required to be entered as part of the
engagement acceptance process. When the Live by our Values-driven culture
KPMG firms are also required to be free Any acquisition of, or investment in, a business engagement is for an audit client, an evaluation
from prohibited interests in, and prohibited requires sufficient due diligence procedures to of potential independence threats and safeguards Apply expertise and knowledge
relationships with, audit clients and their identify and address any potential independence is also required to be included in the submission.
management, directors and, where required, and risk management issues prior to closing
significant owners. KPMG’s independence Embrace digital technology
the transaction. Specific consultations with Lead audit engagement partners are required to
compliance system records direct and material KPMG International are required to enable maintain group structures for their public interest Nurture diverse, skilled teams
indirect investments in listed entities and funds independence and other issues to be addressed entity and certain other audit clients, including
(or similar investment vehicles) as well as in when integrating the business into a KPMG firm their related entities/affiliates. They are also
non-listed entities and funds. This includes and the wider global organization. Associate with the right
responsible for identifying and evaluating any
investments held in associated pension and clients and engagements
independence threats that may arise from the
employee benefit plans.
provision of a proposed non-audit service and the
Independence training and Be independent and ethical
safeguards available to address those threats.
KPMG firms’ borrowing and capital financing confirmations
relationships, as well as custodial, trust and Perform quality engagements
KPMG firms are prohibited from evaluating or
brokerage accounts that hold firm assets must All KPMG partners and client-facing professionals,
compensating audit partners on selling non-audit
also be recorded. as well as certain other individuals, are required
services to their audit clients. Assess risks to quality
to complete independence training upon joining
KPMG firms confirm compliance with KPMG and on an annual basis thereafter, and
Monitor and remediate
independence requirements annually as part of must sign an annual confirmation of compliance. Fee dependency
their KQCE program.
Communicate effectively
KPMG firms have agreed to consult with their
Non-audit services Regional Risk Management Partner where total
Business relationships/suppliers fees from a public interest entity audit client are Governance and leadership
KPMG firms have agreed, at a minimum, to
expected to exceed 10 percent of the annual fee
KPMG has policies and procedures in place that comply with the IESBA Code of Ethics and Appendix
income of the KPMG firm for two consecutive
are designed to ensure its business relationships applicable laws and regulations related to the
years. If the total fees from a public interest
with audit and assurance clients are maintained scope of services that can be provided to
entity audit client and its related entities were to
in accordance with the IESBA Code of Ethics and audit clients.
represent more than 15 percent of the total fees

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 24
received by a particular KPMG firm in a single Independence breaches Firm rotation
year, this would be disclosed to those charged
with governance at the audit client. Where the KPMG personnel are required to report an In certain jurisdictions, KPMG firms are only Introduction and foreword
total fees continued to exceed 15 percent for independence breach to their KPMG firm EIP permitted to act as an auditor for a specific audit
two consecutive years, the KPMG firm would as soon as they become aware of it. Breaches client for a defined period of time and then are A system of quality management that
engage a partner from another KPMG firm as the of independence requirements of the IESBA not to act as auditor for that client for a specified sustains audit and assurance quality
EQC reviewer and the fee dependency would be Code of Ethics or other external independence period of time thereafter. KPMG firms in these
publicly disclosed. requirements are required to be reported to jurisdictions are required to have processes in Live by our Values-driven culture
those charged with governance as soon as place to track and manage compliance with audit
possible, except where alternative timing for less firm rotation requirements. Apply expertise and knowledge
Avoiding conflicts of interest significant breaches has been agreed to with
those charged with governance. Embrace digital technology
All KPMG firms and personnel are responsible Have zero-tolerance approach to
for identifying and managing conflicts of interest, KPMG firms have a disciplinary policy in bribery and corruption
which are circumstances or situations that may Nurture diverse, skilled teams
relation to breaches of independence policies,
that have, or may be perceived to have, an impact incorporating incremental sanctions reflecting
on a KPMG firm’s ability to be objective or act We have zero tolerance of bribery and corruption. Associate with the right
the seriousness of any violations.
without bias. clients and engagements
KPMG firms’ partners and employees are
KPMG firms use the mandatory conflicts and Partner rotation and firm rotation required to take training covering compliance
Be independent and ethical
independence checking system for potential with laws, regulations and professional standards
conflict identification so that these can be relating to anti-bribery and corruption, including
Partner rotation Perform quality engagements
addressed in accordance with legal and the reporting of suspected or actual non-
professional requirements. compliance.
KPMG firm partners are subject to periodic Assess risks to quality
rotation of their responsibilities for audit clients. More about KPMG lnternational’s position and
KPMG personnel and KPMG firms are prohibited
Requirements place limits on the number of policies on anti-bribery and corruption can be Monitor and remediate
from offering or accepting inducements,
consecutive years that partners in certain roles found on the anti-bribery and corruption site.
including gifts and hospitality to or from audit and
may provide audit services to a client, followed by Communicate effectively
assurance clients, unless the value is trivial and
a ‘time-out’ period during which these partners
inconsequential.
are restricted in the roles they can perform. Governance and leadership

Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 25
 Introduction and foreword

Perform
quality
Monitor

Perform quality A system of quality management that

sustains audit and assurance quality

Live by our Values-driven culture

engagements
engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Consult when appropriate clients and engagements

• Consult when appropriate How an audit is conducted Encouraging a culture of consultation Be independent and ethical
• Critically assess audit is as important as the result.
KPMG encourages a culture of consultation that
evidence, using professional Everyone at KPMG is expected Perform quality engagements
supports engagement teams in KPMG firms
judgment and skepticism to demonstrate behaviors throughout their decision-making processes Assess risks to quality
consistent with our Values and and is a fundamental contributor to audit and
• Direct, coach, supervise and assurance quality. Across the organization,
follow policies and procedures Monitor and remediate
review engagement teams are required to consult within
in the performance of effective
their firm when difficult or contentious matters
• Appropriately support and and efficient audits. arise on an engagement.
Communicate effectively
document conclusions
To help with this, KPMG firms have established Governance and leadership
protocols for consultation and documentation
of significant matters, including procedures to Appendix
facilitate the resolution of differences of opinion
on engagement issues. In addition, KPMG audit,
assurance, reporting and risk management manuals
also include specific consultations on certain matters.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 26
Technical consultation and global International Standards Group (ISG) Critically assess audit evidence
resources Develops global guidance to promote consistency
using professional judgment and Introduction and foreword
of interpretation of IFRS® Accounting Standards skepticism
Technical accounting, auditing and assurance and IFRS® Sustainability Disclosure Standards A system of quality management that
support is available to KPMG firms through a by KPMG firms, and to promote a consistent On all audits, KPMG firms design and perform sustains audit and assurance quality
number of subject matter expert global teams. response to emerging accounting and audit issues. audit procedures whose nature, timing and extent
are based on and responsive to the assessed Live by our Values-driven culture
risks. All relevant audit evidence obtained during
Global Audit Methodology Group (GAMG) PCAOB Standards Group (PSG) the course of the audit is considered, including Apply expertise and knowledge
Develops KPMG’s audit and assurance contradictory or inconsistent audit evidence.
Promotes consistency in the interpretation of
methodology based on the requirements of the PCAOB standards in KPMG firms’ audits of Embrace digital technology
Each KPMG team member needs to exercise
applicable audit and assurance standards of the non-US components of US companies and of
professional judgment and maintain professional Nurture diverse, skilled teams
IAASB, PCAOB and AICPA. foreign private issuers and non-US components
skepticism throughout the audit engagement.
of SEC issuers, as defined by SEC regulations.
Professional skepticism involves a questioning
Associate with the right
KPMG Global Solutions Group (KGSG) mindset and remaining alert to contradictory or
The PSG also provides input into the development clients and engagements
inconsistencies in audit evidence. Professional
of training for auditors who work on PCAOB audit
Deploys global audit and assurance solutions, judgment encompasses the need to be aware
engagements and, where practicable, facilitates Be independent and ethical
including new technology and automation of and alert to biases that may pose threats to
the delivery of such training.
innovations. sound judgments.
Perform quality engagements
The KGSG and GAMG teams bring diverse Professional practice resources
experiences and innovative ways of thinking Assess risks to quality
to further evolve KPMG’s audit and assurance KPMG firms provide consultation support on
capabilities. auditing and technical accounting matters to Monitor and remediate
their audit professionals.
More information about KPMG’s global audit and Communicate effectively
assurance methodology and technology-based
tools is included in the Embrace digital technology Governance and leadership
section of this report.
Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 27
Direct, coach, supervise and review An EQC review is an objective evaluation of the In preparing auditors’ and assurance reports,
significant judgments made by the engagement engagement partners have access to reporting
team and its related conclusions, performed by guidance and technical support through Introduction and foreword
Embedding ongoing coaching, the EQC reviewer, and completed on or before consultations with their Department of
supervision and review the date of the report. The EQC reviewer’s Professional Practice. A system of quality management that
evaluation of significant judgments includes an sustains audit and assurance quality
At KPMG, we promote a coaching culture as part
evaluation of the engagement team’s assessment
of enabling KPMG professionals across the global Engagement documentation
of significant risks, including fraud risks, the Live by our Values-driven culture
organization to achieve their full potential.
related responses and whether the related
KPMG firms have agreed to complete and
conclusions are appropriate. The EQC review Apply expertise and knowledge
Coaching fundamentals are embedded in the assemble audit documentation in accordance
is completed only after the EQC reviewer is
audit training curriculum and we support a with KPMG International policy and applicable
satisfied that all significant matters they raised Embrace digital technology
continuous learning environment where KPMG auditing standards. KPMG International policy
have been resolved, though the engagement
partners and professionals contribute to building includes safeguards, to protect the confidentiality
partner is ultimately responsible for the resolution Nurture diverse, skilled teams
the team capacity, coaching other team members and integrity of client and KPMG firm information,
of accounting and auditing matters.
and sharing experiences while directing, and a reduction in the time period allowed to
supervising and reviewing their work. assemble audit documentation. Associate with the right
clients and engagements
Appropriately support and document
Engagement quality control (EQC) conclusions Be independent and ethical
The EQC review is an important part of KPMG’s
approach to quality management. KPMG firms Reporting Perform quality engagements
have agreed to appoint an EQC reviewer for Engagement leaders form all opinions and
each audit engagement, including any related Assess risks to quality
conclusions for audit, assurance and review
review(s) of interim financial information, of all engagements based on the work performed and
listed entities, non-listed entities with a high Monitor and remediate
evidence obtained.
public profile, engagements that require an EQC
review under applicable laws or regulations, and Communicate effectively
other engagements, including certain assurance
engagements, as designated by the RMP or Governance and leadership
individual firm Head of Audit.
Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 28
 Introduction and foreword

A system of quality management that

Assess risks to quality

sustains audit and assurance quality
Perform Perform Perform Perform Perform
quality quality quality quality quality
Live by our Values-driven culture
engagements engagements engagements engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Identifying risks to quality and implementing effective responses clients and engagements

• Identify and understand risks to KPMG International performs an annual iterative risk assessment process (I-RAP) to Be independent and ethical
quality and implement effective determine the baseline expected quality objectives, quality risks, process risk points and
responses controls (responses to those risks) that all KPMG firms agree to adopt. In recognition Perform quality engagements
that they are responsible for their SoQM being in compliance with ISQM 1, KPMG firms
also perform their own I-RAP, annually, to identify any additional quality objectives, Assess risks to quality
quality risks or controls specific to their firm’s facts and circumstances.
The quality of KPMG audit and Monitor and remediate
assurance services rests on KPMG The consistent global approach:

firms’ foundational SoQM, and KPMG’s • Sets the minimum controls to be implemented within all KPMG firms’ SoQM
Communicate effectively
global approach to ISQM 1 emphasizes processes in response to globally identified risks to meeting SoQM quality objectives.
Governance and leadership
consistency and robustness of controls
• Defines the SoQM methodology used by KPMG firms in their annual evaluation of
within KPMG firms’ processes. Appendix
SoQM to demonstrate the SoQM controls are implemented and operating effectively.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 29
 Introduction and foreword

Monitor A system of quality management that

Monitor and remediate

sustains audit and assurance quality
Perform Perform Perform Perform Perform
quality quality quality quality
engagements Live by ourquality
Values-driven culture
engagements engagements engagements engagements

Rem
e diate
Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Rigorously monitor and measure clients and engagements
quality
• Rigorously monitor and Integrated quality monitoring Be independent and ethical
measure quality and compliance programs Commitment to continuous improvement
• Obtain evaluations and act enable KPMG firms to identify Perform quality engagements
KPMG commits to continually improving the
on stakeholder feedback quality deficiencies, perform quality, consistency and efficiency of KPMG Assess risks to quality
root cause analysis and develop, firm audits.
• Perform root cause analysis,
implement and report remedial Monitor and remediate
design and implement The quality monitoring and compliance programs
action plans, both in respect of
remedial action plans are globally consistent in their approach across
individual audit engagements all KPMG firms, including the nature of testing
Communicate effectively
and the overall SoQM. and reporting.
Governance and leadership

Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 30
Internal monitoring and compliance All KPMG firms have agreed to participate in The Audit QPR program is designed by Global
programs these KPMG International-led monitoring programs. Quality & Risk Management. KPMG firms conduct
the annual QPR program in accordance with KPMG Introduction and foreword
KPMG firms have agreed to use quality KPMG firms communicate the results of the International QPR instructions, which promote
monitoring and compliance programs developed integrated monitoring and compliance programs consistency across the organization. In each KPMG A system of quality management that
by KPMG International to identify quality issues, and establish action plans to make improvements firm, responsibility for the QPR Program lies with sustains audit and assurance quality
perform root cause analysis and develop remedial where needed. Results are also considered by the firm’s Risk Management Partner. Reviews
action plans, both for individual audits and for KPMG International. are overseen by an independent experienced lead Live by our Values-driven culture
their overall SoQM. reviewer from another KPMG firm. QPR results are
reported to KPMG International. Apply expertise and knowledge
The programs evaluate: Global Audit Quality Monitoring Group
(GAQMG) Consistent criteria are used to determine Embrace digital technology
• Engagement performance in compliance engagement ratings and audit practice evaluations,
with the applicable professional standards, The GAQMG identifies issues to help drive audit which can then be used to measure improvements
quality. The group comprises a team of partners, Nurture diverse, skilled teams
applicable laws and regulations, and key in the future.
KPMG International policies and procedures. directors and senior managers experienced
in performing quality performance reviews of Associate with the right
Audit engagements selected for review are rated as
• KPMG firms’ compliance with key KPMG listed and related entity audit engagements. clients and engagements
‘Compliant’, ‘Compliant-Improvement Needed’ or
International policies and procedures, and The team also includes partners and professionals ‘Not Compliant’.
the relevance, adequacy and effective with experience in auditing general information Be independent and ethical
operation of key quality management technology controls and application controls.
policies and procedures. KPMG Quality & Compliance Evaluation Perform quality engagements
(KQCE) program
Our internal monitoring and compliance Audit Quality Performance Review Assess risks to quality
programs also contribute to the evaluation of (QPR) program The KQCE program encompasses the testing and
KPMG firms’ SoQM operating effectiveness. evaluation requirements of a KPMG firm’s SoQM, Monitor and remediate
The Audit QPR program assesses engagement- which are necessary to support their compliance
These programs include:
level performance and identifies opportunities to with ISQM 1, and compliance with key quality
improve engagement quality. The objective is for Communicate effectively
• Audit Quality Performance Reviews (QPR) and risk management policies. KQCE program
each engagement leader to be reviewed at least requirements are completed by all KPMG firms.
once in a four-year cycle. A risk-based approach is Governance and leadership
• KPMG Quality & Compliance Evaluation (KQCE)
used by KPMG firms to select engagements for The annual KQCE program covers the period from 1
review. Appendix
• Global Quality & Compliance Review (GQCR) October to 30 September and helps support KPMG
firms’ conclusions on the operating effectiveness
of their SoQM as of 30 September and compliance
with key quality and risk management policies in
that period.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 31
Global Quality & Compliance Review Remediation and monitoring Client feedback
(GQCR) program
KPMG firms develop remedial action plans Client feedback is also important. KPMG firms Introduction and foreword
The GQCR program is a KPMG International to respond to findings identified through the proactively seek feedback from clients through
monitoring program. The objective of the GQCR KPMG International monitoring and compliance in-person conversations and third-party surveys. A system of quality management that
program is to assess a firm’s compliance with programs. Progress on action plans is monitored sustains audit and assurance quality
selected KPMG International policies, including and results are reported, as appropriate, to
those related to governance and SoQM. regional and global leadership. Perform root cause analysis and design Live by our Values-driven culture
and implement remedial action plans
Firms are selected for review using a risk-based Apply expertise and knowledge
approach, which considers a number of factors, Obtain, evaluate and act on
In KPMG firms, the SoQM provides the
including financial conditions, country risks, stakeholder feedback foundation for consistent delivery of quality audit Embrace digital technology
results of other monitoring programs and people
engagements. The firm’s Root Cause Analysis
surveys, with each firm subject to a GQCR at Nurture diverse, skilled teams
We recognize that another important contributor (RCA) program is an integral element of the
least once in a four-year cycle.
to upholding audit quality is to obtain and act monitoring and remediation component in the
upon feedback from key stakeholders. SoQM, driving enhancements to audit quality. Associate with the right
The GQCR team comprises partners and
Leveraging inputs from internal monitoring clients and engagements
managers who are independent of the firm
programs, external inspections and other
subject to review. Regulators activities, firms identify audit quality issues and Be independent and ethical
undertake root cause analysis corresponding
KPMG International has regular two-way
Internal monitoring and compliance to the nature and severity of the issues. Firms Perform quality engagements
communication with the International Forum of
program reporting design their RCA program in accordance with
Independent Audit Regulators (IFIAR), principally
globally consistent RCA training materials and Assess risks to quality
through IFIAR’s Global Audit Quality Working
Findings from the global monitoring and compliance KPMG International’s RCA guide.
Group (GAQWG), to discuss thematic audit
programs are disseminated to KPMG firms through Monitor and remediate
quality issues along with targeted strategies for
written communications, internal training tools and KPMG firms design and implement remedial
improvement. We value the open, honest and
periodic meetings with leadership. actions that respond to the identified root causes
transparent dialogue that IFIAR facilitates on Communicate effectively
of the audit quality issues and subsequently
global audit quality issues.
Findings are also emphasized in subsequent monitor the effectiveness of those actions. The
monitoring and compliance programs to gauge RCA remedial action plans and monitoring results Governance and leadership
Every KPMG firm is expected to maintain
the extent of continuous improvement. are reported to regional and global leadership.
professional and respectful relationships with Appendix
applicable regulators, including proactively
Lead audit engagement partners are notified of Within a KPMG firm, the Head of Audit is
engaging, responding to questions in a timely
Audit QPR not compliant ratings if relevant to responsible for audit quality, including the
manner and taking appropriate remedial actions.
their respective cross-border engagements. remediation of audit quality issues. The RMP
monitors the remediation plans’ implementation.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 32
 Introduction and foreword

A system of quality management that

Communicate effectively
sustains audit and assurance quality
Perform Perform Perform Perform Perform
quality quality quality quality quality
Live by our Values-driven culture
engagements engagements engagements engagements engagements

Apply expertise and knowledge

Embrace digital technology

Nurture diverse, skilled teams

Associate with the right

Provide insights, and maintain open clients and engagements
and honest two-way communication
• Provide insights, and We recognize that another Be independent and ethical
maintain open and honest important contributor to Communications with those charged
two-way communications upholding audit and assurance with governance Perform quality engagements

• Conduct and follow up on quality is to obtain and promptly

We stress the importance of keeping those Assess risks to quality
the Global People Survey act upon feedback from key charged with governance informed of issues
stakeholders. arising throughout the audit through guidance Monitor and remediate
and supporting resources. KPMG firms and
professionals achieve this through a combination Communicate effectively
of reports and presentations, attendance at
audit committee or board meetings, and, when Governance and leadership
appropriate, ongoing discussions with management
and members of the audit committee. Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 33
The role of Audit Committees is key in supporting We also cover areas of focus that are directly
quality auditing by overseeing the relationship relevant to audit quality; the survey includes
between company and auditor and challenging specific audit quality-related questions that Introduction and foreword
what auditors do and how they do it. all individuals who participated in an audit in
the previous 12 months are asked to respond A system of quality management that
to, giving us a particular data set for audit sustains audit and assurance quality
Global IFRS Institute quality-related matters.
Live by our Values-driven culture
KPMG’s Global IFRS Institute provides
The survey also provides KPMG International
information and resources to help board and audit
leadership with insights related to quality and Apply expertise and knowledge
committee members, executives, management,
risk behaviors, upholding the KPMG Values,
stakeholders and government representatives
and employee and partner attitudes to quality, Embrace digital technology
gain insight and access thought leadership about
leadership and tone at the top.
the evolving global financial and sustainability
reporting frameworks. Nurture diverse, skilled teams
All KPMG firms participate in the survey each
year and take appropriate actions to communicate
Associate with the right
and respond to its findings.
Conduct and follow up on the clients and engagements
Global People Survey (GPS) Audit-specific analysis of GPS results is also
undertaken, with a particular focus on audit quality. Be independent and ethical
Only with engaged, talented people can KPMG Results and key themes are presented to the
firms deliver audits in line with our audit quality Global Audit Steering Group on an annual basis Perform quality engagements
expectations. Annually, all KPMG personnel are for consideration of appropriate remedial action,
invited to participate in KPMG’s GPS to share if needed. A global GPS action plan for audit is Assess risks to quality
their perception on their experience of working also communicated to KPMG firms annually.
at KPMG. Monitor and remediate

Results can be analyzed by several factors, Communicate effectively

including functional or geographic area, grade
and gender to provide additional focus for action. Governance and leadership
Through the GPS, KPMG measures our people’s
engagement and gains additional insight on what Appendix
drives engagement.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 34
Governance and leadership Introduction and foreword

A system of quality management that

sustains audit and assurance quality

Live by our Values-driven culture

KPMG International structure and KPMG International — Governance for the overall benefit of the KPMG member
governance firms but does not provide professional services
KPMG International acts as the coordinating entity Apply expertise and knowledge
to clients. Professional services to clients are
for the overall benefit of the KPMG organization. exclusively provided by member firms who
KPMG International It facilitates audit quality across the organization remain solely responsible and liable in respect Embrace digital technology
by establishing common policies, processes and of these services. Our structure is designed
KPMG is a global organization of professional standards to be applied across member firms. to support consistency of service quality and Nurture diverse, skilled teams
services firms providing Audit, Tax and Advisory adherence to agreed Values wherever in the
services. KPMG is the brand under which the KPMG International’s governance bodies are world KPMG member firms operate. KPMG Associate with the right
member firms of KPMG International Limited comprised of the Global Council, the Global member firms have agreed to conduct their clients and engagements
(“KPMG International”) operate and provide Board (including its committees), the Global operations in compliance with a common
professional services. Each firm is a separate legal Management Team and the Global Steering set of Values, standards and service quality Be independent and ethical
entity and together they form the KPMG global Groups. Further detail on each of these is set expectations. Partners and employees within
organization. “KPMG” is used to refer to individual out below. those firms commit to act with integrity at Perform quality engagements
member firms within the KPMG organization or to all times.
one or more member firms collectively.
KPMG member firms — Legal Assess risks to quality
KPMG firms have agreed to comply with KPMG
In many parts of the world, regulated businesses structure and relationship with International’s policies including quality standards
(such as audit and legal firms) are required by Monitor and remediate
KPMG International governing how they operate and how they
law to be locally owned and independent. KPMG provide services to clients. This includes being
member firms do not, and cannot, operate as a Member firms in the KPMG global organization Communicate effectively
professionally and financially stable, having
corporate multinational. KPMG member firms are members in, or have other legal connections
an ownership, governance and management
are generally locally owned and managed. Each to, KPMG International, an English private Governance and leadership
structure that ensures continuity, stability and
KPMG member firm is responsible for its own company limited by guarantee. KPMG
long-term success, and being able to comply
obligations and liabilities. International acts as the coordinating entity Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 35
with policies issued by KPMG International, adopt KPMG International, any of its related entities responsibilities of the Global Board include
global strategies, share resources (incoming or any other member firm vis-à-vis third parties, approving global strategy, protecting and enhancing
and outgoing), service multinational clients, nor does KPMG International or any of its related the KPMG brand and reputation, overseeing the Introduction and foreword
manage risk, and deploy global methodologies entities have any such authority to obligate or Global Management Team, and approving policies
and tools. KPMG firm Heads of Audit have direct bind any KPMG firm. with which KPMG firms have agreed to comply. A system of quality management that
It also approves the admittance or termination of sustains audit and assurance quality
responsibility for audit quality.
Unless otherwise indicated, references in this KPMG firms to/from the global organization.
Each firm is part of one of three regions (the document to a ‘firm’, ‘KPMG firm’, ‘member firm’ Live by our Values-driven culture
Americas, ASPAC and EMA). Each region or ‘member firms’ are references to member It is led by the Global Chairman, Bill Thomas, and
has a Regional Board comprising a regional firms of KPMG International. includes the Chairman of each of the regions Apply expertise and knowledge
chairman, regional chief operating officer, and a number of members who are also member
representation from any sub-regions, and other firm Senior Partners. The list of Global Board Embrace digital technology
members as appropriate. Each Regional Board KPMG International governance bodies members is available on the Leadership page of
focuses specifically on the needs of member [Link]. Nurture diverse, skilled teams
As set out above, as at 1 October 2024, the
firms within their region and assists in the
KPMG International Governance Bodies and their
implementation of KPMG International’s policies Associate with the right
functions are as follows: Global Board committees
and processes within the region. Individual clients and engagements
KPMG firms may consist of more than one The Global Board is supported in its oversight
separate legal entity. If this is the case, each Global Council and governance responsibilities by several Be independent and ethical
separate legal entity will be responsible only for committees, including:
its own obligations and liabilities, unless it has The Global Council focuses on high-level governance
Perform quality engagements
expressly agreed otherwise. tasks and provides a forum for open discussion and • Executive Committee
communication among member firms.
A firm’s status as a KPMG firm and its Assess risks to quality
• Governance Committee
participation in the global organization may Among other things, the Global Council elects the
be terminated if, among other things, it has Global Chairman and approves the appointment of Monitor and remediate
• Global Quality and Risk Management Committee
not complied with the policies set by KPMG Global Board members. It includes representation
International or any of its agreements with it. from 52 KPMG firms. • Global Audit Quality Committee Communicate effectively

KPMG International and the KPMG firms are not Each of these committees is comprised of Global Governance and leadership
a global partnership, single firm, multinational Global Board Board members and reports directly to the
corporation, joint venture, or in a principal or agent Global Board. Appendix
relationship or partnership with each other. No The Global Board is the principal governance and
KPMG firm has any authority to obligate or bind oversight body of KPMG International. The key

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 36
KPMG International structure and governance Audit Steering Group (GASG) and Global Quality
& Risk Management Steering Group (GQ&RMSG)
work closely with regional and member firm Introduction and foreword
Global Council
All member firms (without sub-licensees) leadership to:
A system of quality management that
• Establish and ensure communication sustains audit and assurance quality
Global Board
Global Chairman, 3 Regional Chairmen and other members (maximum 28 members)
of appropriate audit, quality and risk
management policies. Live by our Values-driven culture

• Establish and support effective and efficient Apply expertise and knowledge
Quality and Risk
Executive Governance Audit Quality risk processes to promote audit quality.
Management
Committee Committee Committee
Committee Embrace digital technology
• Promote and support strategy implementation
in member firms’ audit functions, including
Nurture diverse, skilled teams
Global Management Team standards of audit quality.
Global Chairman; Heads of Audit, Tax and Advisory; Quality, Risk and Regulatory; People; Clients and Associate with the right
Markets; Global Chief Administrative Officer; Global Chief Digital Officer; Global COO; General Counsel; • Assess and monitor audit quality issues,
clients and engagements
Global Head of Corporate Affairs including those arising from the SoQM,
quality performance and regulatory reviews,
and focus on best practices that reduce audit Be independent and ethical
quality findings.
Perform quality engagements
Global Management Team The list of GMT members is available on the
Leadership page of [Link]. Global Audit Steering Group (GASG) Assess risks to quality
The Global Board has delegated certain
responsibilities to the Global Management Team The GASG is responsible for driving the KPMG
Monitor and remediate
(GMT). These responsibilities include developing Global Steering Groups firms’ implementation of KPMG’s audit strategy,
the global strategy by working together with the including standards of audit quality. The GASG
Communicate effectively
Executive Committee, and jointly recommending works closely with the GQ&RMSG in relation to
There is a Global Steering Group for each key quality and risk matters related to audit.
the global strategy to the Global Board for its
function and infrastructure area, chaired by the Governance and leadership
approval and overseeing the activities of the
relevant member of the Global Management The GASG is chaired by the Global Head of
Global Steering Groups. The GMT also supports
Team (GMT) and, together, they assist the GMT Audit, and its other members are the Heads Appendix
KPMG firms in their execution of the global
in discharging its responsibilities. They act under of Audit from the eight largest KPMG firms
strategy and KPMG International policies by
delegated authority from the Global Board and and includes the Heads of Audit for each of
member firms. The GMT also oversees the
oversight by the GMT. In particular, the Global KPMG’s three regions (the Americas, EMA and
activities of the Global Steering Groups.

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 37
ASPAC). Senior individuals with direct reporting procedures for the global organization and for
responsibilities to the Global Head of Audit also providing associated guidance. When exercising
regularly attend and provide reports to the GASG, its responsibilities, the GQ&RMSG considers, Introduction and foreword
as well as several standing invitees from key through the Quality Performance Review
KPMG firms. (QPR), the global KPMG Quality & Compliance A system of quality management that
Evaluation (KQCE) program and Global Quality & sustains audit and assurance quality
Compliance Reviews (GQCR), the following:
Global Quality & Risk Management Live by our Values-driven culture
Steering Group (GQ&RMSG) • Firm compliance with quality and risk
management policies, processes and systems. Apply expertise and knowledge
The GQ&RMSG is chaired by the Global Head of
Quality, Risk & Regulatory, and its other members
• Proactive identification and mitigation of Embrace digital technology
are the Risk Management Partners from the eight
largest KPMG firms and the Risk Management significant risks faced by member firms.
Partners for each of the three regions. The Nurture diverse, skilled teams
Global Head of Audit and the Global Head of Risk • Performance of member firm professional
Management, Audit, are regular attendees. Associate with the right
services to drive and help ensure consistent
clients and engagements
high-quality work globally.
The GQ&RMSG is responsible for setting
quality and risk management policies and Be independent and ethical

Perform quality engagements

Assess risks to quality

Monitor and remediate

Communicate effectively

Governance and leadership

Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 38
Appendix Introduction and foreword

A system of quality management that

sustains audit and assurance quality

Live by our Values-driven culture

Total turnover achieved by EU/EEA audit firms resulting from the
statutory audit of annual and consolidated financial statements. Apply expertise and knowledge

Embrace digital technology

Aggregated revenues generated by KPMG firms from EU and EEA
Member States resulting from the statutory audit of annual and Nurture diverse, skilled teams
consolidated financial statements were 2.6 billion euros during the
Associate with the right
fiscal year ending 30 September 2024. The EU/EEA aggregated clients and engagements
statutory audit revenue figures are presented to the best extent
Be independent and ethical
currently calculable and translated at the average exchange rate
prevailing in the 12 months ended 30 September 2024. Perform quality engagements

Assess risks to quality

Monitor and remediate

Communicate effectively

Governance and leadership

Appendix

© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Transparency Report 2024 I 39
 This Transparency Report 2024 contains copyright © material of the IFRS® Foundation. All rights reserved. Reproduced by KPMG International with the permission of the IFRS® Foundation.
Reproduction and use rights are strictly limited. For more information about the IFRS® Foundation and rights to use its material please visit [Link].
Disclaimer: To the extent permitted by applicable law, the Board and the IFRS® Foundation expressly disclaims all liability howsoever arising from this publication or any translation thereof
whether in contract, tort or otherwise (including, but not limited to, liability for any negligent act or omission) to any person in respect of any claims or losses of any nature including direct,
indirect, incidental or consequential loss, punitive damages, penalties or costs.
Information contained in this publication does not constitute advice and should not be substituted for the services of an appropriately qualified professional.
IFRS® Foundation is a registered Trade Mark of the IFRS® Foundation and is used by KPMG International under license subject to the terms and conditions contained therein.
Please contact the IFRS® Foundation for details of countries where its Trade Marks are in use and/or have been registered.

[Link]

Headcount reported is based on partners and staff employed as of 30 September 2024

The financial information reported represents combined information of the independent KPMG member firms that perform professional services for clients, affiliated with KPMG International Limited. The information is combined here solely for
presentation purposes. KPMG International Limited performs no services for clients nor, concomitantly, generates any client revenue.
FY24 revenues throughout this document reflect KPMG’s financial year of 1 October 2023 to 30 September 2024 and are based on US$ gross revenues, including client reimbursable expenses. Local growth percentages maintain consistent US dollar
exchange rates in FY24 and FY23 and therefore do not reflect exchange rate changes between the years.
Throughout this document, “we”, “KPMG”, “us” and “our” refers to the global organization, to KPMG International Limited (“KPMG International”) or to one or more of the member firms of KPMG International, each of which is a separate legal entity.
KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does
KPMG International have any such authority to obligate or bind any member firm.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee
and does not provide services to clients. For more detail about our structure please visit [Link]/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.
Designed by Evalueserve.
Publication name: Transparency Report 2024
Publication number: 139733-G
Publication date: December 2024