As corporate reporting shifts, including the introduction of ESG reporting standards, Emer McGrath, head of audit at KPMG, says investment in emerging technologies can provide better and faster analysis of data to help deliver valuable insights'Audit is vital to trust in financial information, and it’s this trust that turns the wheels of the capital markets system'The audit profession adapted at pace to the challenges presented by the pandemic and is now set to play a critically...
Technology is just one part of the equation. “Much of how the audit profession delivers this trust and transparency is down to attitude,” McGrath points out. “A mindset that values curiosity and a healthy scepticism leads to asking the right questions. It also places a value on challenging assumptions. Such an attitude also requires a relentless focus on quality as the bedrock of every successful audit.
While the technology allows auditors to quickly spot outliers and unusual transactions, clients are looking for other benefits such as trend tracking and early warning on emerging issues. “For example, using technology tools we can check the numbers in large sets of financial statements in minutes so that our teams can spend their time focused on judgments and estimates and their associated disclosures.
Climate change is the overarching challenge of our era. “Organisations across the globe have, or are in the process of developing, environmental, social and governance [ESG] principles and strategies. This is especially the case for decarbonisation and the road to net zero. However, information and reporting need to be accurate and to stand up to robust scrutiny in order to build trust. There is no room for greenwashing.
“The CSRD proposes profound changes to corporate reporting requirements and is central to the EU’s objective of directing capital flows towards sustainable activities,” she notes. “ESG assurance is therefore an area of strong focus for us at KPMG. We are developing and enhancing our methodology around how to apply our smart technology to ESG areas – so we can provide robust opinions on companies’ ESG statements, measurements, and reporting.
As tens of thousands of badly treated talented, hard-working EU Citizens in the UK also found out to their cost. Hundreds of thousands have already left Broken Britain of course, with many still leaving daily to-boot - Hooray!