To provide reasonable assurance of compliance with
independence requirements, the firm’s System of Quality
Control around independence works in preventing and
detecting independence violations. The effectiveness of our
systems relies in large part on receiving quality data from
the audit client. We should discuss with our audit clients
the importance of timely informing the audit engagement team
of upcoming transactions, acquisitions, and other activity
that may result in new affiliates or affiliated persons, such
as persons in financial reporting oversight roles. Client
management may also inform non-audit engagement teams
performing services for the audit client or its affiliates
about such activities or transactions. It’s important
they’re aware of their shared responsibility to also notify
the audit team. When made aware of upcoming transactions,
audit teams should submit an inquiry in the Professional
Practice Inquiry Management application (PPIM) for assistance
with determining whether engagement reevaluation is required
and with navigating the broad implications of such events,
including the independence clearance process. Compliance
with our System of Quality Control must not only be top of
mind when thinking through new affiliates or affiliated
persons; we share in the responsibility to think about
independence as soon as we’re made aware of opportunities
with new audit clients, before they have been “won”. When
potential opportunities arise, new Audit Client Pursuits
should be entered into KPMG Engage and submitted via PPIM,
found on Launchpad under the Client Relationship Management
section. A Professional Practice Support team member will be
assigned to assist you with onboarding steps required for
new audit clients and engagements.