Who Audits Accenture?

Who audits Accenture? The firm appointed KPMG as its independent external auditor in 2002, after PwC failed to separate its consultancy arm.

Accenture is a professional services company (with a huge global presence) that offers many services and solutions to its clientele. As a publicly traded company, it needs to be audited each year for compliance, but who provides these services to Accenture?  

I spent a good amount of time on research and learned that KPMG audits the financial records of Accenture. The firm appointed KPMG as its independent external auditor in 2002. It made this decision when PwC failed to separate its consultancy arm. 

In this comprehensive guide, I’ll reveal:

• Who audits Accenture?
• How much does Accenture pay to its auditor?
• What procedure do they follow to audit the financial records of Accenture?

Who Audits Accenture

Accenture (which is a globally popular consulting and strategy firm) has over 64.11 Billion in annual revenue (Which is more than any of the Big 4 firms).

I learned that Accenture is a publicly traded company. The firm had an initial public offering of 115 million Class A common shares. So, like any other public company, the financial records of Accenture are audited annually.

But who checks its financial statements?

Well, I think Accenture made an interesting choice when it comes to its auditors. 

So, back in 2002, Accenture appointed KPMG as its global auditors. The company took this decision after PwC could not separate its consultancy arm (as requested by Accenture). (Source)

Thus, the company asked PwC to resign from its external auditor post (in November 2001).

After that, Accenture had to choose between the two Big 4 firms:

• EY
• KPMG

But here is the twist! EY had already sold its consultancy division to Cap Gemini. At the same time, KPMG floated its US consulting firm. 

This made the decision difficult for Accenture! However, it selected KPMG as its independent external auditor in the end. 

You’ll be amazed to know that their relationship in this regard is still strong and on the move!  

Quite a journey for Accenture and KPMG, don’t you think?

Accenture Independent External Audit Fees

Now, let me reveal to you how much Accenture pays its external auditor (KPMG) each year!

After some research, I discovered that the annual auditor’s fee of Accenture is divided into:

• Audit Fees
• Audit-related fees
• Tax fees
• All other fees
• Total fees

The Audit fees cover the professional services of KPMG for:

• Auditing the financial statements of Accenture
• Reviewing financial statements in Forms 10-K and Forms 10-Q
• Auditing Accenture’s internal control over the financial reporting

(Source)

The Audit-related fees are for services related to:

• Aggregated fees for assurance and related services (during the fiscal year)
• Merger and acquisition due diligence services fees

While the Tax fees are for professional services and products (by KPMG) for:

• Tax Compliance
• Advice
• Planning

Lastly, All other fees include the amount for various products and services by KPMG (which are not mentioned above).

Below, I’ve provided a table to show you the breakdown of Accenture’s auditors fees:

Pro Tip: The auditor’s fees of Accenture change each year; therefore, check their online proxy statement page for the latest states.

KPMG Methodology For Auditing Accenture

I think Accenture has made the right decision to hire KMPG as an auditor.

If you are wondering why? Let me spill the beans!

KPMG has a very detailed approach to auditing Accenture. It has adopted a methodology that follows both national and international standards. 

Not only that, but it also ensures that its professionals follow the same procedure worldwide. 

For this reason, Accenture continuously trains its audit staff to keep them up to date with the latest practices. (Source)

Here’s what a client has to say about KPMG’s services, “KPMG is one of the best companies to work with for our audit needs. They have well-trained skilled in our domain and industry team of resources determined to add value on the overall audit experience. KPMG delivered a wonderful audit experience from our tools and services to our people and processes. Their extreme focus on enhanced quality derived more accurate results and transformed the audit processes. Overall a wonderful experience to work with KPMG.” (Source)

I found the following important aspects of the standards of KPMG while auditing Accenture:

1. Communication is the Key

The first thing that KPMG follows in auditing the financial records of Accenture is its dedication to communication. 

It believes in the transparency of the records. Therefore, it provides early advice to Accenture to reduce the risks during the audit process.

You know what’s more interesting? The firm appoints its senior professionals to visit Accenture for auditing. 

They communicate with leaders at Accenture to make stronger working relations. This way, they identify any new issues early. 

2. Use of Technology

KPMG has made technology its strength! 

How? KPMG uses advanced technology tools called eAudIT. This helps the firm improve its audit testing for Accenture. 

The tool gives customized electronic workflows. It ensures top-quality audit services for Accenture by bringing together KPMG’s: 

• Collective wisdom
• Industry knowledge
• Technical skills

3. Maintainance of Quality, Integrity, And Independence

What interested me the most is that while auditing Accenture, KPMG maintains:

• Quality
• Integrity
• And independence

In fact, it has its own quality procedures (and all member firms follow them). But that’s not all – it also undergoes external review by:

• Vietnam Association of Certified Public Accountants 
• Ministry of Finance

Here’s more! It gets direct feedback from Accenture and other clients. This helps KPMG assess the quality of its services (to ensure compliance with regular requirements).

I also came to know that KPMG has created an automated tracking system, Sentinel. It helps them manage service relationships with Accenture and other entities. 

So, I can say that for auditing Accenture, KPMG follows a methodology that is communication-focused, technologically advanced, and built on quality, integrity, and independence.

Wrapping Up!

In this read, I revealed who audits Accenture and how much the firm pays its auditor annually. I’ve also discussed the methodology of KPMG for auditing Accenture. 

I hope I have done justice to this article and provided all the valuable insights into the auditing practice of Accenture.