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Accounting
The Profession

The future of audit: rethinking how we work 

KPMG’s Kristy Carscallen explains what will be needed to inspire people as we move into a post-COVID world 

Smiling businesswoman discussing with colleagues through video call“During the pandemic, we learned to be very deliberate in how we connected with people,” says Carscallen. (Getty Images/Morsa Images) 

Among the many sectors that have been affected—or even transformed—by the pandemic, auditing is arguably near the top of the list. From rapid digitization to remote auditing to increased demands for environmental, social and governance (ESG) reporting and auditing, the past 18 months have served as an accelerator for many trends that were already underway. 

But, as is the case in so many industries, the pandemic has also taken its toll in terms of fatigue and burnout. That’s why, in order to fully embrace the opportunities that lie ahead, organizations are realizing they need to think not only about what they do but how they do it.

Here, FCPA Kristy Carscallen, Canadian managing partner and head of audit at KPMG in Canada, explains what she thinks will be needed to inspire and engage people as we move into a post-COVID world.

CPA Canada: You have said that there has never been a better time to be an auditor. Could you explain?
Kristy Carscallen (KC):
Early in the pandemic, accountants were deemed essential, validating the critical role we play in supporting businesses and underpinning the economy. At the same time, the pandemic accelerated key trends in professional services and this created an opportunity to use our skillsets in exciting new ways.

For one, we effectively digitized how we deliver our services overnight—something that could have taken three to five years to do. We also started digitizing routine procedures so people could focus on more meaningful work, such as analyzing data to provide insights to clients.

The pandemic also brought an even greater demand for tech and D&A [data and analytics] skills in the marketplace—an area that we were already focused on. Back in 2018, we partnered with Simon Fraser University’s Beedie School of Business to create a digital upskilling program, which was a first of its kind in Canada. Now, that learning is growing in scale right across our business. 

Kristy CarscallenKPMG’s Kristy Carscallen, FCPA, Canadian managing partner and head of audit at KPMG in Canada (Image provided)

CPA Canada: You have said the growing demand for ESG also makes auditors’ work more meaningful.
KC:
Yes, the world is changing rapidly and ESG is everywhere. This will have a profound impact on professional services and our opportunity to provide assurance on ESG measures ranging from measuring progress on climate goals and diversity to governance on loan portfolios. 

Bringing ESG into what we do will help people see how and why their work matters and how what they do helps build a more sustainable future for everyone.

It’s this growing emphasis on ESG, combined with digitization and new opportunities for upskilling, that makes this a great time to be an auditor. 

CPA Canada: How have auditors been affected by the pandemic?
KC:
COVID-19 has taken a toll on people in every sector. People have had to find ways to meet deadlines while caring for children and family or find ways to share limited workspace. We’ve also seen two years of graduates who have yet to have the simple pleasure of meeting each other in person. That may seem like a small thing, but for a business built on relationships those connections are important. Screen time alone is insufficient and the effect of all of this adds up for people. 

CPA Canada: What can be done in terms of workplace arrangements?
KC:
Our people have said that as we emerge from the pandemic, they want to have flexibility in how and where they work. 

That means we need to think carefully about when we want people to be on site. For example, there may be times when we want to bring the team together or provide coaching in person.

CPA Canada: What about scheduling?
KC:
People need to know that they have the flexibility and control to be able to adjust their schedules to accommodate family and other needs.   

I think our leaders need to live loudly. They need to show people that, when they’re working from home, it’s OK for their families to be living around them on screen. It’s ok for them to turn off their cameras.

At home, I don’t have a door on my office, and I have a 14-year-old daughter who is in and out. It can sometimes get pretty loud, but I wouldn’t trade the past months in terms of being able to be with my family. I do know it’s tough, especially with young children. Even before the pandemic, people needed the appropriate support to deal with those responsibilities. 

CPA Canada: How have you stayed in contact with people?
KC:
During the pandemic, we learned to be very deliberate in how we connected with people. And, as we emerge, we need to stay close and provide them with coaching and development opportunities, similar to when we were seeing each other daily in person. 

CPA Canada: Could you explain what a virtual audit room looks like?
KC:
In the pre-pandemic world, auditors worked in a room with a group of peers. And that’s where all the coaching and mentoring took place.

A junior could turn to a partner and ask for advice. Conversations would be going on that you might overhear. 

We’ve tried to recreate some of that atmosphere by introducing virtual audit rooms. For example, a whole audit team could come together on a Microsoft Teams call and then break out into smaller calls for focused work. Teams have also eaten lunch together or set up social calls just to connect and unwind. 

CPA Canada: How do you make sure people take breaks?
KC:
When you’re working at home, it’s easy to forget to take breaks, so we need to continue to encourage people to take time out. At the firm, we’ve set shorter meeting times so people get a natural break between calls.

During the summer, KPMG also gave everyone extra days off around every long weekend.

CPA Canada: What about monetary rewards?   
KC:
At KPMG, we’re on a journey to transform our practice through digitization and the introduction of ESG. We want to incent our people to really embrace the change. So, we have what we call an audit transformation award—a 15 per cent bonus to help our teams feel valued and rewarded for the critical role they play in shaping the future of our business. 

CPA Canada: Do you have any advice for younger CPAs who are just getting into auditing?
KC:
I would say this: You have a wonderful career ahead of you. The opportunities are endless. Everyone’s career will look different but make sure to put your hand up. Take control and embrace the chance to do something different. Don’t be shy. Ask for the coaching you need. Above all, never stop learning.

CURRENT CHALLENGES, FUTURE OPPORTUNITIES

Find out more about CPA Canada’s ambitious Foresight initiative to future-proof our profession, including its new podcast series. Plus, learn more about organizations’ return-to-work plans, mastering data, helping women thrive in the labour force and how to avoid burnout.