Glossary

Key audit matters are the issues that, in the auditor’s judgment, were most significant in the audit of the current period, and which the auditor describes in the audit report, mainly for listed companies.

Key control indicators are metrics that show whether important controls are operating as intended, for example the share of reconciliations done on time or access reviews completed.

Key person dependency is the exposure that arises when a business relies so heavily on one or a few individuals that losing them through illness, exit or death would disrupt operations, client relationships or decisions.

Key risk indicators are measurable signals that show a risk is rising, usually with thresholds that trigger escalation before losses occur.

A kickback is a secret return of part of a payment or contract value to the person who arranged or approved it, as a reward for steering the business to the payer.

Kleptocracy is rule by a group that treats the state as a source of personal income, taking national wealth through the offices, contracts and companies it controls, until theft is how the system works.

Know Your Business is the due diligence process for company and other organisational customers, confirming that the entity exists, who owns and controls it, and what it actually does.

Know Your Customer is the process by which a regulated firm identifies a customer, verifies who they are, and understands enough about them to judge the risk of the relationship.

Know Your Employee is the practice of checking and understanding the people a firm hires and employs, so as to reduce the risk of fraud, collusion, bribery or other misconduct from the inside.

KYC utilities are shared services that collect, verify and store customer identity and due diligence information once, so that many financial institutions can draw on the same record instead of each repeating the work.