North American Accounting Society

Developing the Auditor of the Future

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 2

Ambitious

auditor-to-be….

…circa 1996

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 3

PCAOB Inspection Deficiencies for Big Four Firms

2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

EY Deloitte PwC KPMG Big 4 Avg

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 4

PATTERN ASSESSMENT

KPMG Data & Analytics Powered Audit

HISTORICAL CURRENT FUTURE

AUDITING STANDARD

MANUAL AUDITTHAT WAS A PAPER-DRIVEN

ANALYSIS SNAPSHOTOF SELECT

TRANSACTIONS IN A200+DATA POPULATION

SAMPLE ANALYSISWITH LIMITEDTRANSACTIONCOVERAGE

OVER 5 YEARSOF EXPERIENCE WITH

DATA ANALYTICS

eAuditDATA DRIVENTECHNOLOGY

USINGENHANCED QUALITY

TECHNOLOGY

USE OF AUTOMATION+ DATA ENABLES

1 MILLION+DATA ANALYSIS

POPULATION SAMPLING

TECHNOLOGY INVESTMENTSENABLES 100%

TESTINGFULL POPULATIONS

OUTLIERS + ANOMALIES

DATA ANALYSIS OF

BENCHMARKINGINTERNAL • INDUSTRY • PEER

IDENTIFYPROCESS IMPROVEMENTSBUSINESS PERFORMANCE TRENDS

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 333287 5

ICOFR Process Systems Controls Teaming

Data & Analytics Working knowledge of using a variety of data sets Technology skills for processing analysis Analytic skills for interpreting results Ability to organize & communicate results

Development Culture of learning Real-time, point-of-use application of new skills Independent study supported by coaching in application

So where should we focus?

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