kpmg audit powered by data & analytics€¦ · revealing more about the business and its risks....

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KPMG AuditQuality + Insight = Value

Roger O’DonnellGlobal Head of Data & Analytics, Audit

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 680848

Enhancing audit quality and thinking boldly about innovation

At KPMG, we have been performing high-quality audits for over 100 years, and we have never been more excited about the innovations we have introduced to our audit approach.

Our audit, powered by innovative Data & Analytics (D&A) capabilities, digs deeper into the data, revealing more about the business and its risks. This, combined with a relentless commitment to quality, makes for a highly effective, highly insightful audit. And we think that’s of value.


1KPMG Audit

flowInnovation is about more than the development and integration of tools. Its true value lies in the sum being greater than the parts. Our audit employs a highly developed workflow that amplifies our industry knowledge by enabling the evaluation of larger, more complete data sets and an ability to identify added and ongoing insights about the business.


New York

London

Moscow

Tokyo

Sydney

Nairobi

Brasilia

Global Work�ow

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Beijing

One flow Our audit approach allows our auditors to progress smoothly and consistently through a quality audit.

Effective Automated dependencies and linkages help in the evaluation of the downstream impact of data entered up front.

Built for business Each of the 67,000 auditors across our global network of member firms has access to the full suite of KPMG’s deep industry knowledge.

Global meets local Auditors across the United States and the global network of member firms can interface and connect using a common language.

Online and global Video chat, collaboration, project management, and anytime/anywhere review capabilities mean we are ready when our clients are.


3KPMG Audit

findOur D&A capabilities, combined with deep knowledge of our clients’ businesses and their industries, enable us to filter, visualize, analyze, and extract information from data in ways that were not possible even a few years ago.


Vendor Analysis

Vendor 1

Vendor 2

Vendor 3

Vendor 5

Vendor 4

Vendor 6

Origin of Vendors

ABC Vendor Analysis

Client Company

One-time vendors

Active vendors

14,085

43,741

One-time Vendors

Total Invoices

Total Payments

Total Orders

Non-active Vendors

Non-active vendors

Active vendors

46,001

13,662

Details

$4,265,947,290

100%

$3,645,107,465

100%

$4,068,514,887

100%

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XL ?

Details XL ? Details XL ? Details XL ?

Customer Transaction Analysis

04/01/2014USDBU0001 11/30/2014 01/11/2015

Nature of transaction Invoice predecessor AR predecessorInvoice type Clearing type

Delivery35.3%

Subledger67.3%

Analysis Period Start Date Analysis Period End Date Extraction Kicko� Date Show Current SelectionSelect Business Unit Currency

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Advanced analytics We are developing the capability to analyze macro and micro historical and current financial and non-financial data to determine whether the business is performing consistently – fine tuning our audit focus.

Data science meets risk assessment Our risk assessment applies advanced statistical modeling to identify unexpected account correlations based on an analysis of up to 100 percent of journal entries.

Signal in the noise Our auditors have powerful tools to screen and identify journal entries matching industry-specific pre-defined or tailored risk profiles across the organization, such as unusual or manual posting activity.

New perspectives Interactive analysis identifies patterns, such as unusual or unique transactions, customer or vendor payment trends, and data outliers, that could point to potential valuation risks.

Wider coverage Automated analysis of transactions—pricing and quantity adjustments, for instance—across the complete sales and purchasing cycles can uncover discrepancies, anomalies, and potential revenue risks.

Deeper insights Visual analysis of the Procure-to-Pay and Order-to-Cash processes streamlines our ability to see and highlight supply chain and concentration risks, collection and payment issues, and price sensitivity and elasticity in the customer base. This may help to identify gaps in controls or reporting issues.


5KPMG Audit

showInsights come to life through impactful and interactive visualizations accessed through an intelligent interface.


Value unlocked The same data that informs our audit often contains a wealth of valuable insights about processes and technology. We can unlock this value with over 50 benchmarks and KPIs run across business units worldwide.

Business flow We visualize the end-to-end flow of transactions through our clients’ systems to pinpoint control risks, anomalies in performance, and unusual activity.

Enhanced risk assessment Graphical dashboards identify authorization and segregation conflicts in the organization and the specific products, transactions, and individuals that may present a risk.

Segregation of Duties

Count of UsersCount of UsersCount of Users Count of Users Count of UsersAB

14User Types

User Types

Department

Department

191112

Product

Product

Non-Prod13

Posting Period

Posting Period Customer

4 105 96 107 108 119 910 12

Production6

Resale11

Testing Result Overview

Customer Master Maintenance

Sales OrderProcessing

Sales Invoicing

Sales Returns/Credit Note Dispatch

ClearingProcessing

Number ofUsers

1

5

5

5

1

182

3

3,880

150

15,107,803

398,320

9,485,531

Number ofTransactions

Amount ofTransactions

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

10

5

0 0000400069 0000400042 00004000010000100055 0000402597

XL ∑ XL ∑ XL ∑ XL ∑

XL

XL ∑

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7KPMG Audit

valueWhat this all means for us is better audit evidence, resulting in a high-quality audit that focuses intensely on financial and operational risks and potentially more meaningful insights into our clients’ businesses.


Exciting new developments are closer than ‘on the horizon’.

kpmg.com/us/audit

Quality + Insight = Value

KPMG is committed to thinking boldly about innovation and leading the profession when it comes to developing tomorrow’s audit capabilities.

Through internal R&D and alliances with leading technology companies such as Microsoft and IBM, we are pioneering significant enhancements to our audit methodology. We are exploring how technologies such as artificial intelligence and robotic process automation can be adapted to the audit and how these enhancements ultimately impact quality, insight and value.


9KPMG Audit

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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 upon such information without appropriate professional advice after a thorough examination of the particular situation.


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kpmg audit powered by data & analytics€¦ · revealing more about the business and its risks....

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