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In organisational terms, the Audit Quality Unit bundles essential audit quality and risk management processes, such as APAS/PCAOB inspection support, second line of defence reviews (EQCR) and quality performance reviews as well as root cause analysis. The Audit Quality Unit team provides an interface to the DPP Audit Methodology, in particular with regard to the technical requirements for the audit methodology, as well as to the Audit Quality Risk Management Partners (AQRMPs). 

Our quality assurance encompasses measures that are independent of the engagement and measures that accompany the engagement. 

In the case of engagements for companies of public interest as well as other engagements with increased risk, an engagement quality performance review partner (EQCRP) and/or a 2nd line of defence review (2LoD) is performed to accompany the engagement.

In addition, we are subject to the legally prescribed external quality control by another auditing firm on a regular basis and, with regard to our clients in the public interest within the meaning of 316a HGB, to the annual inspection by the Auditor Oversight Authority (APAS). 

Independently of this, annual internal follow-up inspections are carried out to ensure compliance with KPMG's quality assurance system at both practice and engagement level.

Ensuring independence and impartiality

Ensuring independence and impartiality is important for regulatory compliance and client trust.

Therefore, KPMG has implemented extensive measures to ensure independence and impartiality, such as training, obtaining independence declarations and the KPMG tool Sentinel, which is used to check the eligibility of all services before accepting an engagement.

Communication with clients

Quality assurance requires communication with clients. That is why the audit is followed by an assessment by the client.

For this purpose, we have developed two KPMG assessment questionnaires (relationship scorecards). On the one hand, this gives us an important assessment of our clients' perception of the quality of the KPMG audit team and the audit execution. On the other hand, we can assess the quality of the preparation of the financial statements as well as the financial statement documents submitted by the client.

We analyse the results of this survey together with the client in order to take measures that are directly incorporated into the follow-up audit. The relationship scorecards help to identify and eliminate inconsistencies and inefficiencies quickly and unbureaucratically.

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