What sets us apart is one of the largest and most specialised financial institution audit departments with extensive experience in auditing financial statements prepared according to the Polish accounting standards and IFRS, as well as providing other attestation services to financial institutions operating in Poland.
KPMG's financial institution audit department in Poland has operated since 1998. It specialises in auditing financial statements of banks, insurance companies and other financial market players such as investment funds, brokerage firms, leasing companies, asset management firms and other financial institutions.
We also boast extensive experience in auditing group reporting packages prepared in accordance with IFRS, as well as verifying internal control systems and financial reporting under the PCAOB standards in banks.
Since 2016, we have also audited Solvency and Financial Condition Reports (SFCR) of insurance companies, and we had completed dry run projects for our clients before the implementation of the Solvency II Directive.
Our audits are designed and performed in accordance with the national standards on auditing. We use the methodology and tools developed within the global KPMG network, including IT systems and tools (such as eAudit, Idea, Clara or MUS) which increase our audit effectiveness, as well as analysing large data volumes based on embedded rules to deepen the scope of our analysis.
We start our work by analysing our clients' environment, new regulatory requirements and the impact of revised accounting and auditing standards. As a member of the KPMG network, we have continuous and immediate access to all relevant information emerging in these areas so that we are able to refer to best practices for specific disclosures or new interpretations.
Matters identified during our audits are communicated to the management of Companies and Supervisory Boards/Audit Committees on an ongoing basis, with particular emphasis on the observations from our preliminary visits made before the end of the financial year. We identify and communicate important issues to management and Audit Committees/Supervisory Boards during our preliminary audit so that weaknesses can be addressed and that the final audit can proceed as smoothly as possible – in line with the “no surprises” principle. KPMG also has a well-established model approach for contacting Audit Committees whilst being the founder of the KPMG's Audit Committee Institute.
In addition to auditing financial statements, our attestation services also include:
- assessing banks’ compliance with the requirements for custody of client assets as specified in the Regulation of the Minister of Finance of 29 May 2018 on detailed technical and organisational conditions for investment firms, banks referred to in Article 70.2 of the Financial Instruments Trading Act, and custodian banks;
- assessing banks’ capital adequacy disclosures for compliance with the requirements set out in “Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012” (Pillar 3);
- expressing an opinion on compliance of investment fund valuation methods and principles with the methods and principles set out in the Accounting Act and the secondary legislation passed thereunder, in particular the Regulation of the Minister of Finance on specific accounting principles of investment funds, as well as on the completeness and compliance of funds’ valuation methods and principles with their respective investment policies;
- assessment of the risk management system taken over by the Investment Fund Managers for compliance with the requirements of the Act on Investment Funds and Alternative Investment Fund Management, the secondary legislation and the Commission Delegated Regulation (EU) with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision.
Team that knows the financial sector
The financial institution audit department consists of more than one hundred professionals with in-depth knowledge of the financial sector and extensive experience in providing financial audit and review services, due diligence reviews and accounting advice in Poland and abroad.
Our department’s management and staff have in-depth knowledge in such areas as operating activities of banks and insurance companies, accounting and financial reporting of financial institutions, including in particular credit risk, insurance risks, actuarial matters and measurement of financial instruments, which is supported by their qualifications as auditors (PIBR, CPA, ACCA) and licensed actuaries in Poland and other countries, as well as the experience they have gained while working for financial institutions in Poland and abroad.
The audit teams are also supported on an ongoing basis by our certified financial risk managers (FRM), IT systems auditors (CISA), process auditors (ITIL, ABCP), project managers (Prince2), internal auditors (CIA) and tax advisors. Our approach is based on the best market standards and is supported by the extensive experience we have gained working with the regulatory environment of banks, insurance companies and other financial institutions, including Poland’s major investment funds, leasing companies and brokerage firms.
Within the FS there is also an Actuarial Group providing consultancy services as well as supporting audit teams in auditing financial statements and SFCR reports of insurance companies.