As part of its campaign to restore trust in audit in the wake of the financial crisis, the firm experimented with increasing the amount of useful information provided in the new long-form audit report, way beyond the minimum regulatory requirements.
As well as reporting on the risks and the auditors’ response to them, KPMG also included commentary from the individual senior audit partner. This included a discussion about qualitative matters with the aim of helping to add colour and depth, and to “emphasise areas of risk that concern management, audit committee and investors alike”.
The outcome was so successful that City Equity Research was moved to say, “KPMG’s report on Rolls-Royce should be regarded as best practice, in our view.” [economia]
