Fit-for-purpose technical capabilities—in the hands of our highly-skilled people.
The James Webb Space Telescope has captured the clearest images yet of galaxies hundreds of millions of light-years away, illuminating starbursts, shock waves, and cosmic dust for the world to see. How? Rather than sending astronauts into space, it changed the game, inspiring innovators across fields.
The relevance to the audit industry: We, too, face complex challenges that have traditionally relied on manual human-speed activities that can consume valuable time and may not fully capture all risks to an organization. So, what’s our gamechanger?
Our answer: Bold and strategic investments fine-tune how we deliver a data-driven audit. We’re focused on defining what a data-driven audit is and, in the future, we’ll focus on other elements of how we’re bringing that to life.
What we’re doing: To us, delivering a data-driven audit means efficiently extracting and analyzing transaction-level data to fine-tune risk assessments and glean new audit insights to corroborate expectations, reveal outliers, streamline audit procedures, and more. Importantly, all this work is delivered via KPMG Clara – our global smart audit platform that brings all our work together.
This emphasis on D&A has accelerated investments in new ways to extract data from a broad set of IT environments. No matter the business IT environment or where our clients are on their technology journey, we can work with them to efficiently extract more data.
How this is playing out in audits: To deliver against this strategy, last year we deployed a wide array of advanced D&A solutions across our portfolio: data extraction, transformation, analysis, visualization, bots, automated routines, document investigation solutions, and more. In fact, the adoption of extraction and transformation solutions more than tripled, while the use of visualization technology nearly doubled in FY22. Let’s go a bit deeper:
As KPMG Vice Chair – Audit Scott Flynn wrote, “No matter what is going on with your business, your audit must consistently deliver the efficiencies and insights you need, while maintaining the highest quality standards.” A data-driven audit delivers against that promise by efficiently and effectively extracting data, using technology to analyze that data consistently, including at the transaction-level, and then focusing our testing on the areas of highest risk.
Coming soon: D&A is a critical component of our technology focus, and it has multiple facets. Now that we’ve established what a data-driven audit is, in a future article we’ll discuss how we use automation to deliver quality and efficiency. I look forward to sharing more on our automation journey soon.