D & A overview

DATA & ANALYTICS A N O V E R V I E W ?

What is a D&A Audit?

Impact to Partners & Managers?

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Auditor of the future… is here and nowKPMG’s vision is to be the ‘Clear Choice’ in Audit, and Data & Analytics is core to delivering that vision.

An audit powered by D&A means an opportunity to create an unparalleled experience for our clients, increase our service offering and improve revenue for KPMG.

Click on the following buttons in sequence to learn three key points about D&A:

Getting StartedClick on the buttons at the top to learn more about the following:

• What is a D&A powered audit?

• How does D&A impact audit Partners and Managers?

Quality Insights Value





Quality = We are looking to maximize the quality of every audit. We are doing this through automation of standard processes and the power of analyzing entire populations.










Insights = We are going beyond the traditional audit to provide our clients with actionable insights through deeper analysis of our client’s business processes and performance.










Insights = We are going beyond the traditional audit to provide our clients with actionable insights through deeper analysis of our client’s business processes and performance.

Value = By providing quality and insights, we are giving greater value to our clients and enhancing the client experience.





DATA & ANALYTICS A N O V E R V I E W ?Impact to Partners & Managers?


What about Big Data?Our D&A capabilities allow us to access, store and analyze vast quantities of complex and variable dataof a varied nature and from different sources.

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Defining Data & Analytics

Data comes in many types and from many different sources.

Analytics is the process of examining collecting, organizing and analyzing large sets of data.

An audit powered by Data & Analytics examines data to provide audit evidence by:

• Analyzing a greater amount of data – faster.

• Concentrating our audit efforts on higher risk areas.

• Identifying anomalies.

• Empowering our people to focus on what’s important.

• Providing our clients with meaningful business insights.

Click the Forward arrow to continue.

What is a D&A Powered Audit?



For example, KPMG’s D&A capabilities allow us to:• Analyze 100% of the

population.

• Obtain higher quality audit evidence and focus testing on high risk areas.

• Handle large volumes of data.

• Automate routine tasks.

• Provide insights into the client’s business processes.

• Perform benchmarking.


What are the types of data analytics we can use in our audit?Data & Analytics is the key to unlocking the rich information that businesses hold.

Click on each of these types of analytics to learn more.


HindsightLooking

back

ForesightLooking forward

InsightLooking deeper

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population.










Looking back refers to analyzing transactions and other data from past activities. These types of descriptive analytics provide information about the state of events, trends, patterns, and relationships in the existing data.

Example: We can perform a three-way match, where we automatically match shipping documents, sales orders, and invoices in order to identify pricing or quantity discrepancies. In this example, the analytics empower the auditor’s analysis and judgment on transactions that occurred throughout the audited period.

HindsightLooking

back






population.










These diagnostic analytics allow us to look in depth at the data, discover unusual patterns, make sense of them, and identify anomalies. We use this information in our audit of the financial statements and to generate meaningful, useable insights into the client’s processes.

Example: We can use D&A to analyze transactions in the client’s Purchases process. This will give us insights into the effectiveness of the client’s ERP system and system of internal control and we can obtain detailed information about the specific transactions to better focus our audit efforts and identify opportunities for improvement in the entity’s processes and controls.

HindsightLooking

back






population.










HindsightLooking

back



These are predictive analytics which answer the question – What is likely to happen? Predictive analytics may be used to convert data into audit evidence.

Example: We can develop a sophisticated and automated predictive analytical procedure, where we can review sales, sales history and payment history for key customers and predict which customers represent higher credit risk or risk of insolvency.




D&A is not just about tools & technologyData & Analytics is not just about tools and technology. It’s about empowering our people. KPMG Partners and Managers now have unprecedented capabilities to provide clients with meaningful insights while delivering enhanced audit quality.

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D&A is About Empowering Our People

Getting Started on the JourneyD&A is a journey for KPMG, our professionals, and our clients. As our D&A powered audit continues to evolve, our D&A capabilities will continue to grow in exciting new directions. The future really does begin right now. Are you ready for it?

It is important for Partners and Managers to understand and discuss the global audit D&A story with our clients and our people. It’s critical that we tell that story clearly, and in one voice.

Click the Forward arrow to continue.

How Does D&A Impact Audit Partners and Managers?




What are Your Responsibilities in Implementing D&A?Throughout this journey, Partners and Managers have the responsibility to implement the D&A strategy, especially with respect to helping teams understand and adopt new capabilities, and speaking to clients about the value and benefits of D&A. You have a responsibility to be proactive in implementing the strategy starting now.

This means:• You need to understand the D&A audit strategy and KPMG’s D&A capabilities

in order to lead your teams in implementing D&A. As Partners and Managers, you have the responsibility to support, challenge and work with your teams to take the audit experience to the next level.

• The audit landscape is changing quickly and D&A will increasingly become an integral part of how we execute our audits. You need to confidently discuss KPMG D&A capabilities and vision with potential and existing clients. It is critical for Partners and Managers to begin the D&A journey starting from today.

What can you do?• Talk to your clients about D&A

today!

• Perform meaningful D&A procedures on your engagements that will drive quality, insights and value.

• Lead your team to implement D&A procedures on your engagements.

• Attend the Building Confidence with D&A workshop to learn more.

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D&A is About Empowering Our People

How Does D&A Impact Audit Partners and Managers?





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ResourcesThe following resources can be used to assist you after the workshop:

Global Audit D&A WebsiteGives an overview of D&A in the Audit, providing resources to support D&A in the audit approach, deploying D&A and go-to-market materials.

Go to Market MaterialsThe go-to-market materials (presented on the Global Audit D&A Website) include:• The D&A Brochure describes our approach, the value we provide and successes in delivering audits powered by D&A.• The Audit D&A Message Platform - For use to start conversations with clients and respond to regulators.• Proposal language, describing our capabilities in areas of D&A.• Videos - for external and internal use.

eData CentreProvides a list of published and upcoming guidance for audit teams about how to use eData resources on their engagements.

Global Audit VisionIncludes the Audit Vision, and related resources.

Global D&A StrategyProvides the KPMG Global D&A Strategy.

Global D&A PortalIncludes links to a number of Global D&A resources, such as news and marketing materials. Previous

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https://portal.ema.kworld.kpmg.com/audit/Pages/DataAnalyticsinAudit.aspx

https://portal.ema.kworld.kpmg.com/audit/Pages/DataAnalyticsinAudit.aspx

https://portal.ema.kworld.kpmg.com/audit/Documents/DataAnalyticsToolkit/KPMG-Unlocking-the-value-of-audit-with-Data-and-Analytics.pdf

https://portal.ema.kworld.kpmg.com/audit/Documents/data-and-analytics/Audit%20DA%20message%20platform.pdf

https://workspaces.amr.kworld.kpmg.com/aro/AROWeb/DocumentWindow.aspx?id=UN_IDATA_Data

https://portal.ema.kworld.kpmg.com/audit/Pages/Vision.aspx

http://portal.kworld.kpmg.com/Strategy/Pages/DataAnalytics.aspx

http://portal.ema.kworld.kpmg.com/Adv/SI/Pages/DataAnalytics.aspx