north american accounting society developing the auditor of the future
TRANSCRIPT
North American Accounting Society
Developing the Auditor of the Future
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 2
Ambitious
auditor-to-be….
…circa 1996
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 3
PCAOB Inspection Deficiencies for Big Four Firms
2009 2010 2011 2012 20130%
10%
20%
30%
40%
50%
60%
EY Deloitte PwC KPMG Big 4 Avg
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 4
PATTERN ASSESSMENT
KPMG Data & Analytics Powered Audit
HISTORICAL CURRENT FUTURE
AUDITING STANDARD
MANUAL AUDITTHAT WAS A PAPER-DRIVEN
ANALYSIS SNAPSHOTOF SELECT
TRANSACTIONS IN A200+DATA POPULATION
SAMPLE ANALYSISWITH LIMITEDTRANSACTIONCOVERAGE
OVER 5 YEARSOF EXPERIENCE WITH
DATA ANALYTICS
eAuditDATA DRIVENTECHNOLOGY
USINGENHANCED QUALITY
TECHNOLOGY
USE OF AUTOMATION+ DATA ENABLES
1 MILLION+DATA ANALYSIS
POPULATION SAMPLING
TECHNOLOGY INVESTMENTSENABLES 100%
TESTINGFULL POPULATIONS
OUTLIERS + ANOMALIES
DATA ANALYSIS OF
BENCHMARKINGINTERNAL • INDUSTRY • PEER
IDENTIFYPROCESS IMPROVEMENTSBUSINESS PERFORMANCE TRENDS
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 5
ICOFR Process Systems Controls Teaming
Data & Analytics Working knowledge of using a variety of data sets Technology skills for processing analysis Analytic skills for interpreting results Ability to organize & communicate results
Development Culture of learning Real-time, point-of-use application of new skills Independent study supported by coaching in application
So where should we focus?
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