"We accept the criticism from the AFM on this specific quality element and the manner in which the system was designed almost five years ago. We acknowledge the deficiencies in our quality control system at the time and regret that this occurred. With the measures taken in mid 2009 and thereafter, we comply completely in our opinion with the legal requirements pertaining EQCR, as supervised by the AFM.
Today KPMG is completely changed compared to the organisation of that time. We now have a largely new Board of Management led by Jurgen van Breukelen as the new chairman of the Dutch practice. Meanwhile, we have implemented a series of key measures to significantly strengthen our processes, professional culture and professional practice. We have introduced planning and monitoring of the hours spent by EQCR partners on a monthly basis, mandatory training and peer review sessions, and sanctioning of non-compliance. We have also introduced Partner Portfolio Reviews to evaluate both the workload and the quality of each partner, as well as performance indicators for each partner in the areas of Quality and Risk Management. And, most recently, we have appointed a new Board member as the Quality and Risk Partner, confirming that this responsibility needs to be taken at the highest level.
We refrain from further judicial procedures. It is time to close this old file, to leave it behind us and focus again on the future. I want a positive dialogue with the AFM and I am satisfied only if we achieve the highest quality standard in our audit practice."
Contact: Eric Bouwmeester.