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This Transparency Report provides information about our firm’s governance, culture, relentless focus on quality, and processes for risk management.
Whilst KPMG is a multi-disciplinary firm, the report is primarily focused on our Audit practice and the policies and programmes we have in place to support audit quality.
The information disclosed relates to KPMG in the UK’s activities as at 30 September 2023, and demonstrates compliance with the following reporting requirements:
- Audit Firm Governance Code (Revised 2016).
- Article 13 (Transparency Report) of Regulation (EU) No 537/2014 of the European Parliament and of the Council – as amended by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019.
- The Local Auditors (Transparency) Regulations 2020.
- Consultative Committee of Accountancy Bodies Voluntary Code of Operative Practice on Disclosure of Audit Profitability (March 2009).
Jon Holt / Chief Executive and Senior Partner, KPMG in the UK
30 January 2024
Our commitment to audit quality
Audit quality is fundamental to maintaining public trust and is the key measure on which our professional reputation stands.
We define “audit quality” as the outcome when audits are executed consistently, in line with the requirements and intent of applicable professional standards within a strong system of quality management.
All of our related activities are undertaken in an environment of the utmost level of objectivity, independence, ethics and integrity.
To that end, KPMG has a Global Quality Framework (GQF) for use across KPMG globally. This framework guides how we work and how we approach the audit. It helps ensure a consistent approach with quality at its heart.
To provide more transparency on what drives KPMG audit and assurance quality, this report is structured around the KPMG Global Quality Framework.
The drivers outlined in the Framework are the ten components of our KPMG system of quality management (SoQM). In line with the International Standard on Quality Management (ISQM) 1, our SoQM also aligns with the requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA), which apply to professional services firms that perform audits of financial statements.
Our Global Quality Framework
Visit the Audit quality page for more information on the components of this framework, and the activities we’ve delivered during the year against it.
Under ISQM1 we are required to evaluate the effectiveness of our system of quality management on an annual basis. Our first evaluation was performed as of 30 September 2023.
Based on the annual evaluation of the Firm’s System of Quality Management as of 30 September 2023, the System of Quality Management provides the Firm with reasonable assurance that the objectives of the System of Quality Management are being achieved.
Our full Statement on the effectiveness of the System of Quality Management of KPMG UK LLP as at 30 September 2023 can be found here.
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Throughout this document, “KPMG”, “we”, “our” and “us” refers to KPMG in the UK.
Any references to the KPMG global organisation mean the member firms of KPMG International Limited, 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 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.
KPMG International means KPMG International Limited unless the context requires the reference to mean KPMG International Services Ltd (which provides services, products and support to, or for the benefit of, member firms or KPMG International Limited but not services, products or support to clients) or KPMG International Cooperative (which owns and licenses the KPMG brand).
Throughout this document, 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 KPMG International Transparency Report.