KPMG Clara Workflow: International-Enhanced PIE Methodology Explained

KPMG Clara workflow incorporates an enhanced methodology for International-Enhanced PIE (Public Interest Entities) and Non-PIE assessments. This approach aims to identify entities with a significant impact on the economy and those subject to heightened regulatory scrutiny.

Which of the following entities are most likely to meet the International-Enhanced PIE criteria?

A: An entity that meets the KAEG-I definition of a bank. B: A large complex entity that is highly leveraged and owned by private equity. D: An entity planning to list in the foreseeable future.

Entities meeting the International-Enhanced PIE criteria typically demonstrate characteristics such as large size, complexity, and a significant economic impact. They are often subject to additional regulatory requirements.

Here's a breakdown of why the listed options might qualify:

• A: An entity that meets the KAEG-I definition of a bank. Banks are commonly classified as International-Enhanced PIEs due to their crucial role in the financial system.
• B: A large complex entity that is highly leveraged and owned by private equity. These entities can have a significant influence on the economy and may require increased scrutiny.
• D: An entity planning to list in the foreseeable future. These entities face enhanced regulatory requirements and scrutiny as they transition into a publicly traded company.

Understanding the International-Enhanced PIE criteria is essential for organizations to comply with relevant regulations and ensure appropriate oversight.