Case Document 1281 Filed in TXSB on 05/26/21 Page 1 of 84

(1)

1 )

Debtors.

) (Jointly Administered)

)

FOURTH MONTHLY FEE STATEMENT OF KPMG LLP FOR ALLOWANCE OF

COMPENSATION AND REIMBURSEMENTOF EXPENSES TO PROVIDE AUDIT, TAX

COMPLIANCE AND TAX CONSULTING SERVICES FOR THE

PERIOD FROM DECEMBER 1, 2020 THROUGH DECEMBER 31, 2020

Name of Applicant: KPMG LLP

Applicant’s Role in Case: Provide audit, tax compliance and tax consulting services to the Debtors

Date Order Of Employment Signed: 10/09/20 [Docket No. 331]

Beginning of Period End of Period

Time period covered by this Application: 12/01/20 12/31/20

Time period(s) covered by prior Applications: 08/19/20 11/30/20

Total amounts awarded in all prior Applications: N/A

Total professional fees requested in this Application: $514,663.99 (80% of $643,329.99)

Total actual professional hours covered by this Application: 236.4

Average hourly rate for professionals: $479.40

Total paraprofessional fees requested in this Application: $0.00 Total actual paraprofessional hours covered by this Application: 0.0

Average hourly rate for paraprofessionals: $0.00

Reimbursable expenses sought in this application: $0.00

Total to be Paid to Priority Unsecured Creditors: Each Holder of an

Allowed Other Priority Claim shall receive as determined by the Debtors or the Reorganized Debtors with the reasonable consent of the Required Consenting Noteholders (not to

be

unreasonably

withheld,

conditioned, or

delayed) (i) Cash in an 1 _{A complete list of each of the Debtors in these chapter 11 cases may be obtained on the website of the Debtors’ proposed claims and}

(2)

Plan, Art. III.B.2.

Anticipated % Dividend to Priority Unsecured Creditors: 100%

Total to be Paid to General Unsecured Creditors: Class 9: General

Unsecured Claims. Each Holder of a General Unsecured Claim shall receive payment in full in cash within ninety days after the later of (i) the Effective Date and (ii) the date such Allowed General Unsecured Claim comes due under applicable law or in the ordinary course of business in accordance with the terms and conditions of the particular transaction or agreement giving rise to such Allowed General Unsecured Claim. See Plan, Art. III.B.9.

Anticipated % Dividend to General Unsecured Creditors: Class 9: General Unsecured Claims. 100%

Date of Confirmation Hearing: 03/03/21

Indicate whether plan has been confirmed: Yes [Docket No. 1139]

Dated: May 25, 2020

Respectfully submitted,

/s/ Brad Ringleb

Brad Ringleb

KPMG LLP

(3)

Professional Person Position & Department Billed Hours Hourly Billing Rate Total Compensation

Adeola Adekanbi Sr. Manager - Audit 3.7 $ 553.00 $ 2,046.10

Alaukik Singh Sr. Associate - International Tax 44.0 $ 515.00 $ 22,660.00

Amber Liang Sr. Associate - Audit 5.1 $ 430.50 $ 2,195.55

Austin Frates Associate - M&A 5.7 $ 364.00 $ 2,074.80

Blane Brown Manager - M&A 9.3 $ 700.00 $ 6,510.00

Brad Ringleb Partner - Audit 0.9 $ 658.00 $ 592.20

Brandon Jalnos Sr. Associate - M&A 0.8 $ 602.00 $ 481.60

Chris Homm Manager - Audit 0.5 $ 483.00 $ 241.50

David Leeds Managing Director - International Tax 1.0 $ 924.00 $ 924.00 David Leeds Managing Director - International Tax 2.8 $ 792.00 $ 2,217.60 (1) Hasnain Valika Sr. Manager - International Tax 11.6 $ 720.00 $ 8,352.00

Iretiayo Adenaike Manager - Audit - UK 1.8 $ 127.58 $ 229.64

Jarrett Cosyns Sr. Manager - EVS 4.3 $ 720.00 $ 3,096.00

Jeff Hiller Sr. Manager - International Tax 0.5 $ 732.00 $ 366.00

Jennifer Nguyen Sr. Manager - EVS 0.6 $ 840.00 $ 504.00

Jesse Ivory Manager - EVS 0.6 $ 690.00 $ 414.00

Juanita Garza Associate - Retention & Billing 4.5 $ 165.00 $ 742.50

Kevin Kennison Principal - EVS 0.6 $ 980.00 $ 588.00

Kevin Kimbrough Sr. Associate - Audit 6.6 $ 430.50 $ 2,841.30

Mark Horowitz Principal - EVS 1.7 $ 765.00 $ 1,300.50

Melinda Jones Associate - Audit 11.4 $ 308.00 $ 3,511.20

Monica Plangman Director - Retention & Billing 1.3 $ 270.00 $ 351.00 (2) Nancy Gonzalez Associate - International Tax 20.0 $ 312.00 $ 6,240.00

Patrick Furey Principal - EVS 0.6 $ 980.00 $ 588.00

Pooja Ravisankar Associate - M&A 27.0 $ 312.00 $ 8,424.00

Robert Calloway Sr. Manager - M&A 2.3 $ 840.00 $ 1,932.00

Roberto Vargas Associate - EVS 3.3 $ 310.00 $ 1,023.00

Roberto Vargas Associate - EVS 0.5 $ 312.00 $ 156.00 (1)

Sara Johnson Sr. Associate - M&A 8.1 $ 602.00 $ 4,876.20

Sarah Stegner Sr. Associate - EVS 33.0 $ 516.00 $ 17,028.00

Swati Herwadkar Manager - Intl Tax 3.0 $ 684.00 $ 2,052.00

Thomas Bettge Manager - WNT 6.8 $ 625.00 $ 4,250.00 (2)

Tyler Martin Associate - Audit 10.9 $ 273.00 $ 2,975.70

Yinka Kukoyi Partner - M&A 1.6 $ 966.00 $ 1,545.60

(4)

Discounted Hourly Fees $ 113,329.99

Fixed Fee - Audit Services - Exhibit C1 $ 530,000.00 (3)

Subtotal of Fees $ 643,329.99

Out of Pocket Expenses $

-Total Fees and Out of Pocket Expenses $ 643,329.99

less Holdback Adjustment (20%) $ (128,666.00)

Net Requested Fees & Out of Pocket Expenses $ 514,663.99

Blended Hourly Rate $ 479.40

(1)

Rates vary depending on services performed under various engagement letters.

(3) _{Per the engagement letter dated June 25, 2020, KPMG and the Debtors agreed to a fixed fee of $2,200,000.00 for services relating to}

the Integrated Audit Services. Approximately $1,670,000 of the Fixed Fee was paid prepetition. Subject to the Court’s approval and pursuant to the terms and conditions of the Engagement Letter dated June 25, 2020, the remaining amount is to be billed in the amount of $530,000 on December 31, 2020. KPMG is requesting the amount of $530,000.00 in this monthly fee statement.

(5)

Matter Description Exhibit Billed Hours Requested

2020 Audit Services C1 - $ 530,000.00 (1)

2020 Audit Out-Of-Scope Services C2 6.5 $ 3,413.54

Tax Consulting Pre-Filing Agreement (PFE) Services C3 0.0 $

-Restructuring Services C4 28.8 $ 18,344.20

Retention Services C5 1.0 $ 270.00

Fee Application Preparation Services C6 68.6 $ 22,561.15

Tax Consulting - Federal, Salt, Foreign, and Cares Act Services C7 0.0 $

-Sale Transaction Tax Consulting Services C8 77.9 $ 39,073.60

Tax Consulting - Restructuring C9 0.0 $

-Tax Compliance Services C10 4.0 $ 2,814.00

Transfer Pricing Services C11 37.8 $ 20,280.00

Unilateral Advance Pricing Agreement (APA) Services C12 11.8 $ 6,573.50

Total 236.4 $ 643,329.99

(1) _{Per the engagement letter dated June 25, 2020, KPMG and the Debtors agreed to a fixed fee of $2,200,000.00 for services relating to the}

(6)

Amber Liang Sr. Associate - Audit

12/01/20 Review, concurrently researching the Payroll portion of capital expenditure / property, plant and equipment.

0.1 Tyler Martin Associate -

Audit

12/01/20 After obtaining the supporting files for the enhanced Capex from the impairment model, draft communication to send to K. Nunez (Valaris) for follow-up requests.

0.2

12/01/20 Communication with A. Adekanbi (KPMG) regarding submitting procedures in the Extend platform.

0.2 Chris Homm Manager -

Audit

12/01/20 Discussion regarding Payroll to PPE allocation and to verify if this was covered in the Payroll process with A. Liang (KPMG).

0.3

12/01/20 Discussion regarding Payroll to PPE allocation and to verify if this was covered in the Payroll process with C. Homm (KPMG).

0.3

Chris Homm Manager - Audit

12/01/20 Manager review, as of 12/01/20, of file prepared by KPMG team as well as guidance to prepare for the meeting with the senior manager and partner.

0.3

12/01/20 Meeting with A. Liang (KPMG) to discuss plan to document walkthrough and control documentation.

0.3

12/01/20 Meeting with C. Homm (KPMG) to discuss plan to document walkthrough and control documentation.

Audit

12/01/20 Updating risk assessment section to address review notes left by senior manager.

Audit

12/01/20 Clearing review notes addressed by staff related to risk documentation.

0.4 Melinda Jones Associate -

Audit

12/01/20 Complete the Joint Venture 3.1 internal audit screen. 0.4 Melinda Jones Associate -

Audit

12/01/20 Complete the Revenue 3.1 internal audit screen. 0.4

Tyler Martin Associate - Audit

12/01/20 Meeting with A. Liang, M. Jones and K. Kimbrough (KPMG) to discuss status of tasks completed during the day, 12/01/20. 0.4 Kevin Kimbrough Sr. Associate - Audit

12/01/20 Meeting with A. Liang, M. Jones and T. Martin (KPMG) to discuss status of tasks completed during the day, 12/01/20.

Audit

12/01/20 Meeting with A. Liang, T. Martin and K. Kimbrough (KPMG) to discuss status of tasks completed during the day, 12/01/20.

0.4

12/01/20 Meeting with M. Jones, T. Martin and K. Kimbrough (KPMG) to discuss status of tasks completed during the day, 12/01/20.

(7)

12/01/20 Meeting with N. Georgas, P. Dwyer, C. Bauer, T. Gault (Valaris), A. Adekanbi and A. Liang (KPMG) to discuss significant changes identified in placemats.

0.4

12/01/20 Meeting with N. Georgas, P. Dwyer, C. Bauer, T. Gault (Valaris), A. Adekanbi and T. Martin (KPMG) to discuss significant changes identified in placemats.

0.4

Adeola Adekanbi

Sr. Manager - Audit

12/01/20 Meeting with N. Georgas, P. Dwyer, C. Bauer, T. Gault (Valaris), A. Liang and T. Martin (KPMG) to discuss significant changes identified in placemats.

0.4

Adeola Adekanbi

Sr. Manager - Audit

12/01/20 Perform senior manager review, as of 12/01/20, of fixed asset walkthrough documentation.

Audit

12/01/20 Prepare Joint Venture 3.1 internal audit screen. 0.4

Melinda Jones Associate - Audit

12/01/20 Prepare Payroll 3.1 internal audit screen. 0.4

12/01/20 Prepare Revenue 3.1 internal audit screen. 0.4

12/01/20 Associate review, as of 12/01/20, of supporting

documentation for impairment discount rate to corroborate answers to the evaluation team's follow-up

0.5

12/01/20 Documentation of procedures completed in accordance with impairment technical topic audit program guide.

0.5 Brad Ringleb Partner - Audit 12/01/20 Meeting with A. Adekanbi, C. Homm, A. Liang and T.

Martin (KPMG) to discuss the sub-population performance materiality to be utilized for expenditure sampling.

0.5

12/01/20 Meeting with A. Liang, C. Homm (KPMG), C. Nguyen, J. Desai and T. Gault (Valaris) to discuss FCR Controls for Payroll.

0.5

12/01/20 Meeting with A. Liang, M. Jones (KPMG), C. Nguyen, J. Desai and T. Gault (Valaris) to discuss FCR Controls for Payroll.

0.5

12/01/20 Meeting with B. Ringleb, A. Adekanbi, A. Liang and T. Martin (KPMG) to discuss the sub-population performance materiality to be utilized for expenditure sampling.

0.5

12/01/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm and A. Liang (KPMG) to discuss the sub-population performance materiality to be utilized for expenditure sampling.

(8)

12/01/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm and T. Martin (KPMG) to discuss the sub-population performance materiality to be utilized for expenditure sampling.

0.5

Adeola Adekanbi

Sr. Manager - Audit

12/01/20 Meeting with B. Ringleb, C. Homm, A. Liang and T. Martin (KPMG) to discuss the sub-population performance

materiality to be utilized for expenditure sampling.

0.5

12/01/20 Meeting with M. Jones, C. Homm (KPMG), C. Nguyen, J. Desai and T. Gault (Valaris) to discuss FCR Controls for Payroll.

0.5

12/01/20 Senior associate review, as of 12/01/20, concurrently updating the residual questions in preparation for Payroll walkthrough. 0.5 Kevin Kimbrough Sr. Associate - Audit

12/01/20 Meeting with A. Liang (KPMG) to discuss updated allocations in the project plan / go-forward processes.

0.6

12/01/20 Meeting with K. Kimbrough (KPMG) to discuss updated allocations in the project plan / go-forward processes.

0.6

12/01/20 Update, as of 12/01/20, of impairment models / memos / procedures to Clara workflow.

0.7

12/01/20 Begin to prepare the discount rate sensitivity analysis procedure.

0.8

12/01/20 Meeting with A. Liang (KPMG) to discuss the tasks to complete on the project plan.

0.8 Amber Liang Sr. Associate -

Audit

12/01/20 Meeting with M. Jones (KPMG) to discuss the tasks to complete on the project plan.

Audit

12/01/20 Update, as of 12/01/20, the project plan allocations for project plan team discussion.

Audit

12/01/20 Update, as of 12/01/20, the references and procedures within the estimate workpaper documentation as well as the impairment walkthrough.

0.8

12/01/20 Document explanations obtained from N. Georgas (Valaris) for significant variances in impairment placemat

comparisons.

0.9

Brad Ringleb Partner - Audit 12/01/20 Meeting with A. Adekanbi, C. Homm, A. Liang, M. Jones and T. Martin (KPMG) to discuss engagement status / tasks to complete, as well as allocation of procedures within the project plan / prioritization of tasks.

(9)

12/01/20 Meeting with B. Ringleb, A. Adekanbi, A. Liang, M. Jones and T. Martin (KPMG) to discuss engagement status / tasks to complete, as well as allocation of procedures within the project plan / prioritization of tasks.

1.0

12/01/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, A. Liang and M. Jones (KPMG) to discuss engagement status / tasks to complete, as well as allocation of procedures within the project plan / prioritization of tasks.

1.0

12/01/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, A. Liang and T. Martin (KPMG) to discuss engagement status / tasks to complete, as well as allocation of procedures within the project plan / prioritization of tasks.

1.0

12/01/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, M. Jones and T. Martin (KPMG) to discuss engagement status / tasks to complete, as well as allocation of procedures within the project plan / prioritization of tasks.

1.0

Adeola Adekanbi

Sr. Manager - Audit

12/01/20 Meeting with B. Ringleb, C. Homm, A. Liang, M. Jones and T. Martin (KPMG) to discuss engagement status / tasks to complete, as well as allocation of procedures within the project plan / prioritization of tasks.

1.0

Kevin Kimbrough

Sr. Associate - Audit

12/01/20 Review of the audit file to note status of audit along with upcoming deadlines. 1.0 Srinivas Puppala Manager - Advisory

12/01/20 Review the IPE (Information Produced by the Entity) workpaper documentation, concurrently updating KPMG workpaper documentation.

1.0

12/01/20 Senior associate review, as of 12/01/20, of project plan for prioritization of tasks to delegate to complete.

1.0

12/01/20 Update, as of 12/01/20, the Pension Estimates workpaper for the defined benefit pension liability.

Audit

12/01/20 Continue, from earlier in the day, to prepare the discount rate sensitivity analysis procedure.

1.8 Adeola

Adekanbi

Sr. Manager - Audit

12/01/20 Perform senior manager review, as of 12/01/20, of independence related workpaper documentation in KPMG Clara Workflow (KCW). 2.0 Adeola Adekanbi Sr. Manager - Audit

12/01/20 Perform senior manager review, as of 12/01/20, of fixed asset flowchart along with other support-related

documentation for process understanding.

(10)

Adeola Adekanbi

Sr. Manager - Audit

12/01/20 Continue, from earlier in the day on 12/01/20, senior manager review of fixed asset walkthrough documentation.

Audit

12/01/20 Call with K. Kimbrough (KPMG) to discuss audit, bankruptcy and documentation requirements for Ch.11 Bankruptcy. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/01/20 Call with T Martin (KPMG) to discuss audit, bankruptcy and documentation requirements for Ch.11 Bankruptcy.

Audit

12/02/20 Call with T. Gault (Valaris) to discuss the remaining annual tax controls / timing of the follow-up meeting.

Audit

12/02/20 Meeting with A. Liang (KPMG) to discuss plan for documentation of payroll.

Audit

12/02/20 Meeting with A. Liang and K. Kimbrough (KPMG) to discuss navigation of TeamMate Reader used for internal audit.

0.2

12/02/20 Meeting with M. Jones (KPMG) to discuss plan for documentation of payroll. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/02/20 Meeting with M. Jones and A. Liang (KPMG) to discuss navigation of TeamMate Reader used for internal audit.

0.2

12/02/20 Meeting with M. Jones and K. Kimbrough (KPMG) to discuss navigation of TeamMate Reader used for internal audit.

0.2

Brad Ringleb Partner - Audit 12/02/20 Meeting with A. Adekanbi and T. Martin (KPMG) to discuss response to Valuation specialist team for evaluation of discount rate.

0.3

12/02/20 Meeting with A. Liang (KPMG) to discuss documentation approach for Corporate accounting impairment assumptions control.

0.3

12/02/20 Meeting with B. Ringleb and A. Adekanbi (KPMG) to discuss response to Valuation specialist team for evaluation of discount rate. 0.3 Adeola Adekanbi Sr. Manager - Audit

12/02/20 Meeting with B. Ringleb and T. Martin (KPMG) to discuss response to Valuation specialist team for evaluation of discount rate.

0.3

12/02/20 Meeting with T. Martin (KPMG) to discuss documentation approach for Corporate accounting impairment assumptions control.

0.3

12/02/20 Review, concurrently preparing follow-up communication to the review team regarding service organization reports.

Audit

12/02/20 Prepare instructions, concurrently submitted requests for service organization report review

(11)

12/02/20 Meeting with A. Liang (KPMG) to discuss if pension assets should be considered an estimate.

0.4

12/02/20 Meeting with M. Jones (KPMG) to discuss if pension assets should be considered an estimate.

0.4

12/02/20 Update the risks and process understanding to address review note in the audit file.

Audit

12/02/20 Call with A. Adekanbi (KPMG) to discuss control

documentation and testing of payroll allocations within fixed asset additions.

0.5

12/02/20 Call with A. Adekanbi (KPMG) to discuss precision of impairment assumption control as well as review of discount rate. 0.5 Adeola Adekanbi Sr. Manager - Audit

12/02/20 Call with T. Martin (KPMG) to discuss control

documentation and testing of payroll allocations within fixed asset additions. 0.5 Adeola Adekanbi Sr. Manager - Audit

12/02/20 Call with T. Martin (KPMG) to discuss precision of impairment assumption controls as well as review of discount rate.

0.5

12/02/20 Meeting with A. Adekanbi, A. Liang, T. Martin, K.

Kimbrough and M. Jones (KMPG) to discuss status of tasks completed during the day, as of 12/02/20.

0.5

12/02/20 Meeting with A. Adekanbi, C. Homm, A. Liang, K.

Kimbrough and M. Jones (KMPG) to discuss status of tasks completed during the day, as of 12/02/20.

0.5

12/02/20 Meeting with A. Adekanbi, C. Homm, A. Liang, T. Martin and K. Kimbrough (KMPG) to discuss status of tasks completed during the day, as of 12/02/20.

0.5

Kevin Kimbrough

12/02/20 Meeting with A. Adekanbi, C. Homm, A. Liang, T. Martin and M. Jones (KMPG) to discuss status of tasks completed during the day, as of 12/02/20.

0.5

12/02/20 Meeting with A. Adekanbi, C. Homm, T. Martin, K. Kimbrough and M. Jones (KMPG) to discuss status of tasks completed during the day, as of 12/02/20.

0.5

12/02/20 Meeting with A. Liang, K. Kimbrough and M. Jones (KPMG) to discuss status of tasks scheduled for completion and resolving incomplete items as a team.

0.5

12/02/20 Meeting with A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss status of tasks scheduled for completion and resolving incomplete items as a team.

(12)

Kevin Kimbrough

12/02/20 Meeting with A. Liang, M. Jones and T. Martin (KPMG) to discuss status of tasks scheduled for completion and resolving incomplete items as a team.

0.5

Brad Ringleb Partner - Audit 12/02/20 Meeting with C. Bauer, T. Gault, K. Basler (Valaris), A. Adekanbi and C. Homm (KPMG) to discuss IT Audit status update with Valaris team.

0.5

12/02/20 Meeting with C. Bauer, T. Gault, K. Basler (Valaris), B. Ringleb and A. Adekanbi (KPMG) to discuss IT Audit status update with Valaris team.

0.5

Adeola Adekanbi

Sr. Manager - Audit

12/02/20 Meeting with C. Bauer, T. Gault, K. Basler (Valaris), B. Ringleb and C. Homm (KPMG) to discuss IT Audit status update with Valaris team.

0.5

12/02/20 Meeting with C. Homm (KPMG) to debrief on payroll post walkthrough. 0.5 Adeola Adekanbi Sr. Manager - Audit

12/02/20 Meeting with C. Homm, A. Liang, T. Martin, K. Kimbrough and M. Jones (KMPG) to discuss status of tasks completed during the day, as of 12/02/20.

0.5

12/02/20 Meeting with K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss status of tasks scheduled for completion and resolving incomplete items as a team.

0.5

12/02/20 Meeting with M. Jones (KPMG) to debrief on payroll post walkthrough.

0.5

Thato Matome Associate - EVS

12/02/20 Perform research to prepare a listing of comparable companies focusing on Valaris specifics.

Audit

12/02/20 Update, as of 12/02/20, the impairment analysis memo to reflect explanations incorporated into the placemat comparison.

0.5

12/02/20 Meeting with K. Kimbrough (KPMG) to discuss testing procedures / support to request for certification of CERAMIC control. 0.6 Kevin Kimbrough Sr. Associate - Audit

12/02/20 Meeting with T. Martin (KPMG) to discuss testing procedures / support to request for certification of control.

Audit

12/02/20 Perform procedures within impairment technical topic audit program guide to identify subsequent transactions for sales of rigs for disconfirming evidence.

0.6

12/02/20 Meeting with A. Liang (KPMG) to discuss matrix tracker for completion of audit sections.

(13)

12/02/20 Meeting with T. Martin (KPMG) to discuss matrix tracker for completion of audit sections.

0.7

Adeola Adekanbi

Sr. Manager - Audit

12/02/20 Perform senior manager review, as of 12/02/20, of risks related to fixed assets in KCW.

0.7 Kevin

Kimbrough

12/02/20 Senior associate review, as of 12/02/20, of certification letter. 0.7 Chris Homm Manager -

Audit

12/02/20 Meeting with A. Adekanbi, A. Liang, T. Martin (KPMG) and T. Gault (Valaris) to discuss service organization reports, payroll re-allocations, timing of third quarter samples and impairment evidence.

0.9

12/02/20 Meeting with A. Adekanbi, C. Homm, A. Liang (KPMG) and T. Gault (Valaris) to discuss service organization reports, payroll re-allocations, timing of third quarter samples and impairment evidence.

0.9

12/02/20 Meeting with A. Adekanbi, C. Homm, T. Martin (KPMG) and T. Gault (Valaris) to discuss service organization reports, payroll re-allocations, timing of third quarter samples and impairment evidence.

0.9

Adeola Adekanbi

Sr. Manager - Audit

12/02/20 Meeting with C. Homm, A. Liang, T. Martin (KPMG) and T. Gault (Valaris) to discuss service organization reports, payroll re-allocations, timing of third quarter samples and impairment evidence. 0.9 Kevin Kimbrough Sr. Associate - Audit

12/02/20 Call with A. Liang (KPMG) to discuss allocations and items for the week.

Audit

12/02/20 Call with K. Kimbrough (KPMG) to discuss allocations and items for the week.

1.0 Thato Matome Associate -

EVS

12/02/20 Perform research for the various companies selected to be comparable companies, concurrently reviewing the analysis performed in April 2019 and noting that some of the comparable companies are now bankrupt resulting in additional research to locate alternatives.

1.0

Kevin Kimbrough

12/02/20 Perform research of information from Prior Year (PY) / Quarter 1 to select samples.

1.0 Kevin

Kimbrough

12/02/20 Senior associate review, as of 12/02/20, of screens in KPMG Clara workflow (KCw) / documentation of controls.

Audit

12/02/20 Perform procedures within impairment technical topic audit program guide to trace rig values pre / post impairments.

(14)

12/02/20 Associate inspection, as of 12/02/20, of supporting documentation for impairment discount rate to corroborate answers to the evaluation team's follow-up.

1.4

12/02/20 Manager review, as of 12/02/20, of payroll process, including evaluation of the key reports / review of notes of the process walkthrough (1.7) and communication with the Valaris IT team as to the reports that need to be tested (.1).

1.8

Kevin Kimbrough

12/02/20 Perform research of KPMG guidance regarding procedures for certification letters focusing on Valaris specifics.

Audit

12/02/20 Update, as of 12/02/20, of impairment memo substantive documentation.

2.8 Ashley Moore Sr. Associate

Advisory

12/02/20 Prepare response to KCW Clara review comments. 3.0

Faye Wang Sr. Associate - International Tax

12/02/20 Update, as of 12/02/20, the information request list related to Rowan Q1 2020 Transactions.

3.0

12/02/20 Associate review, as of 12/02/20, of team member notes, concurrently reviewing Part 1 recording of Payroll walkthrough to prepare for payroll documentation.

3.1

Adeola Adekanbi

Sr. Manager - Audit

12/02/20 Continue, from earlier on 12/02/20, to perform senior manager review of risks related to fixed assets in KCW.

Audit

12/03/20 Associate review, as of 12/03/20, of the engagement team's impairment analysis memo for final updates documented.

Audit

12/03/20 Call with T. Gault (Valaris) regarding the support provided for impairment controls and requested follow-up from Marketing group for contract backlog.

0.2

12/03/20 Communication with K. Kimbrough (KPMG) regarding the substantive testing / reperformance for operating

expenditures. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/03/20 Update, as of 12/03/20, of the control testwork with quarter 1 information.

Audit

12/03/20 Associate review, as of 12/03/20, of support provided by T. Gault (Valaris) for the impairment placemat / marketing backlog controls.

0.3

Brad Ringleb Partner - Audit 12/03/20 Meeting with A. Adekanbi, C. Homm, A. Liang, K.

Kimbrough and T. Martin (KPMG) to discuss status of tasks in progress and procedures to complete during the day, 12/03/20. 0.3 Kevin Kimbrough Sr. Associate - Audit

12/03/20 Meeting with A. Liang (KPMG) to discuss entity level controls requests to be sent to client.

(15)

12/03/20 Meeting with B. Ringleb, A. Adekanbi, A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss status of tasks in progress and procedures to complete during the day, 12/03/20.

0.3

12/03/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, A. Liang and K. Kimbrough (KPMG) to discuss status of tasks in progress and procedures to complete during the day, 12/03/20. 0.3 Kevin Kimbrough Sr. Associate - Audit

12/03/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, A. Liang and T. Martin (KPMG) to discuss status of tasks in progress and procedures to complete during the day, 12/03/20.

0.3

12/03/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, K. Kimbrough and T. Martin (KPMG) to discuss status of tasks in progress and procedures to complete during the day, 12/03/20. 0.3 Adeola Adekanbi Sr. Manager - Audit

12/03/20 Meeting with B. Ringleb, C. Homm, A. Liang, K.

Kimbrough and T. Martin (KPMG) to discuss status of tasks in progress and procedures to complete during the day, 12/03/20.

0.3

12/03/20 Meeting with K. Kimbrough (KPMG) to discuss entity level controls requests to be sent to client.

Audit

12/03/20 Meeting with A. Liang and K. Kimbrough (KPMG) to navigate and access Drillzone for client employee search.

0.4

12/03/20 Meeting with A. Liang, K. Kimbrough and M. Jones (KPMG) to discuss status of tasks for the day and outstanding items.

0.4

12/03/20 Meeting with A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss status of tasks for the day and outstanding items. 0.4 Kevin Kimbrough Sr. Associate - Audit

12/03/20 Meeting with A. Liang, M. Jones and T. Martin (KPMG) to discuss status of tasks for the day and outstanding items.

0.4

12/03/20 Meeting with K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss status of tasks performed during the day.

0.4

Kevin Kimbrough

12/03/20 Meeting with M. Jones and A. Liang (KPMG) to navigate and access Drillzone for client employee search.

0.4

12/03/20 Meeting with M. Jones and K. Kimbrough (KPMG) to navigate and access Drillzone for client employee search.

(16)

12/03/20 Call with J. Ivory (KPMG) regarding the responses received from KPMG Audit and Valaris’ management for the discount rates utilized by Valaris / the set of comparable companies to use for the EVS calculation of the Weighted Average Cost of Capital (WACC) to be compared to the discount rates used by Valaris’ management to assess the reasonableness of Valaris’ management’s discount rates and the purchase price allocation (PPA) review performed by KPMG EVS in 2019 due to Valaris’ management utilization of discount rates based on those calculated during the PPA.

0.5

Jesse Ivory Manager - EVS

12/03/20 Call with T. Matome (KPMG) regarding the responses received from KPMG Audit and Valaris’ management for the discount rates utilized by Valaris / the set of comparable companies to use for the EVS calculation of the Weighted Average Cost of Capital (WACC) to be compared to the discount rates used by Valaris’ management to assess the reasonableness of Valaris’ management’s discount rates and the purchase price allocation (PPA) review performed by KPMG EVS in 2019 due to Valaris’ management utilization of discount rates based on those calculated during the PPA.

0.5

Ashley Moore Sr. Associate Advisory

12/03/20 Communication regarding IRM status to B. Ringleb, A. Adekanbi and S. Puppala (KPMG).

0.5 Kevin

Kimbrough

12/03/20 Draft email to T. Gault (Valaris) requesting additional documentation for Entity Level Control 15.

Audit

12/03/20 Meeting with A. Liang (KPMG) to discuss the control attributes for impairment model as information produced by entity.

0.5

12/03/20 Meeting with T. Martin (KPMG) to discuss the control attributes for impairment model as information produced by entity.

0.5

12/03/20 Review the responses received from KPMG Audit and Valaris’ management for the discount rates utilized by Valaris as well as the set of comparable companies to use for the EVS calculation of the Weighted Average Cost of Capital (WACC) in preparation for call with J. Ivory (KPMG).

0.5

12/03/20 Update, as of 12/03/20, the procedure references and tick marks within second / third quarter impairment models as well as memos.

(17)

12/03/20 Manager review, as of 12/03/20, of payroll flowcharts with process understanding, the IA control matrix, reports identified by us to be key reports to ensure all process risk points are covered / general process understanding is appropriate to review documentation in the file once ready for review. 0.7 Kevin Kimbrough Sr. Associate - Audit

12/03/20 Perform additional research on sampling methodology in KPMG Audit Execution Guide in preparation for sampling Entity Level Control 15.

0.7

12/03/20 Update, as of 12/03/20, control attributes for impairment model for completeness / accuracy.

0.7 Kevin

Kimbrough

12/03/20 Update, as of 12/03/20, the documentation based on research from KPMG audit execution guide in the KPMG Clara Workflow (Entity Level Control 15).

0.7

12/03/20 Update, as of 12/03/20, the impairment walkthrough documentation to reflect manager comments.

0.7 Kevin

Kimbrough

12/03/20 Select samples of Group 1 and Group 2 certification lists of individuals who filled out the certification forms (.8) and draft email to forward to client (.1).

0.9

Srinivas Puppala

Manager - Advisory

12/03/20 Manager review, as of 12/03/20, of the IPE (Information Produced by the Entity) workpaper documentation.

Audit

12/03/20 Update, as of 12/03/20, documentation to controls over reports tested by the audit team / relied on by management to document how control addresses the risks identified,

concurrently included clearing / deleting review notes related to such documentation. (.8) Manager review, as of 12/03/20, of other outstanding review notes in the expenditure section to ensure still appropriate based on enhanced process understanding. (.2)

1.0

12/03/20 Document the precision for control 5.8b relative to

predictability / materiality with the corresponding updates to the design and implementation.

1.2

12/03/20 Meeting with A. Liang (KPMG) to discuss documentation of process control screens of understanding and risk,

walkthrough and flowchart documentation for payroll.

1.3

12/03/20 Meeting with M. Jones (KPMG) to discuss documentation of process control screens of understanding and risk,

walkthrough and flowchart documentation for payroll.

1.3

12/03/20 Began documentation of tax controls design and implementation.

(18)

Kevin Kimbrough

12/03/20 Update, as of 12/03/20, testwork, concurrently researching appropriate sampling parameters.

Audit

12/03/20 Document additional updates to the impairment walkthrough per manager comments.

1.7

Kevin Kimbrough

12/03/20 Senior associate review, as of 12/03/20, of prior year retention file to note tasks to be allocated to the paraprofessionals

1.7

12/03/20 Document preparation of impairment model as information produced by entity with corresponding control to address completeness / accuracy.

1.8

12/03/20 Update, as of 12/03/20, the payroll process control screens. 1.9 Ashley Moore Sr. Associate

Advisory

12/03/20 Documentation of KCW Clara GITC (General IT Controls) / TOE (Testing of Operating Effectiveness) screens.

2.5 Adeola

Adekanbi

Sr. Manager - Audit

12/03/20 Perform senior manager review, concurrently updating the impairment walkthrough (WT).

Audit

12/03/20 Perform the JE review utilizing the payroll walkthrough recording, concurrently reconciling.

Audit

12/03/20 Continue, from earlier on 12/03/20, documenting tax controls design and implementation.

Audit

12/04/20 Draft request to A. Qureshi (Valaris) for a follow-up walk through meeting with marketing.

Audit

12/04/20 Call with T. Gault (Valaris) to discuss internal audit reports and updates. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/04/20 Draft email to Valaris contact for non-payroll operating expenses.

Audit

12/04/20 Meeting with A. Liang (KPMG) to discuss placemat comparison procedure updates per support received from client.

0.2

12/04/20 Meeting with K. Kimbrough (KPMG) to discuss samples related to Non-Payroll Operating Expenses.

0.2

12/04/20 Meeting with T. Martin (KPMG) to discuss placemat comparison procedure updates per support received from client. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/04/20 Meeting with T. Martin (KPMG) to discuss samples related to Non-Payroll Operating Expenses.

(19)

Kevin Kimbrough

12/04/20 Update, as of 12/04/20, the testwork for non-payroll operating expenses focusing on adjustment of criteria for testing.

0.2

12/04/20 Meeting with A. Adekanbi, K. Kennison, J. Ivory and T. Matome (KPMG) to discuss understanding and intended procedures over the discount rate utilized by management.

0.3

Kevin Kennison

Principal - EVS

12/04/20 Meeting with A. Adekanbi, T. Martin, J. Ivory and T. Matome (KPMG) to discuss understanding and intended procedures over the discount rate utilized by management.

0.3

12/04/20 Meeting with A. Adekanbi, T. Martin, K. Kennison and J. Ivory (KPMG) to discuss understanding and intended procedures over the discount rate utilized by management.

0.3

12/04/20 Meeting with A. Adekanbi, T. Martin, K. Kennison and T. Matome (KPMG) to discuss understanding and intended procedures over the discount rate utilized by management.

0.3

Adeola Adekanbi

Sr. Manager - Audit

12/04/20 Meeting with T. Martin, K. Kennison, J. Ivory and T. Matome (KPMG) to discuss understanding and intended procedures over the discount rate utilized by management.

0.3

12/04/20 Update, as of 12/04/20, the references to supporting documentation included in the impairment walkthrough.

0.3 Kevin

Kimbrough

12/04/20 Vouching non-payroll operating expense credits. 0.3

12/04/20 Associate review, as of 12/04/20, of support provided by K. Nunez (Valaris) for the capital expenditure schedules for impairment placemats.

0.4

12/04/20 Meeting with A. Liang, K. Kimbrough and M. Jones (KPMG) to discuss status of tasks completed and addressing items as a team, as of 12/04/20.

0.4

12/04/20 Meeting with A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss status of tasks completed and addressing items as a team, as of 12/04/20. 0.4 Kevin Kimbrough Sr. Associate - Audit

12/04/20 Meeting with A. Liang, M. Jones and T. Martin (KPMG) to discuss status of tasks completed and addressing items as a team, as of 12/04/20.

0.4

12/04/20 Meeting with K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss status of tasks completed and addressing items as a team, as of 12/04/20.

(20)

Kevin Kimbrough

12/04/20 Senior associate review, as of 12/04/20, of non-payroll operating expense screens in KPMG Clara workflow, concurrently preparing follow-up review notes.

0.4

12/04/20 Discussion with J. Ivory (KPMG) regarding the Weighted Average Cost of Capital (WACC) models built by T. Matome for the Q1 / Q2 impairment analyses.

0.5

12/04/20 Discussion with T. Matome (KPMG) regarding the

Weighted Average Cost of Capital (WACC) models built by T. Matome for the Q1 / Q2 impairment analyses.

0.5

12/04/20 Meeting with A. Adekanbi (KPMG) to discuss continuous improvement survey responses and preparation for the workshop meeting.

0.5

Brad Ringleb Partner - Audit 12/04/20 Meeting with A. Adekanbi, A. Liang, K. Kimbrough M. Jones and T. Martin (KPMG) to discuss the status of tasks, including impairment and tax procedure documentation.

0.5

Adeola Adekanbi

Sr. Manager - Audit

12/04/20 Meeting with A. Liang (KPMG) to discuss continuous improvement survey responses and preparation for the workshop meeting.

0.5

12/04/20 Meeting with B. Ringleb, A. Adekanbi, A. Liang M. Jones and K. Kimbrough (KPMG) to discuss the status of tasks, including impairment and tax procedure documentation.

0.5

Kevin Kimbrough

12/04/20 Meeting with B. Ringleb, A. Adekanbi, M. Jones, A. Liang and T. Martin (KPMG) to discuss the status of tasks, including impairment and tax procedure documentation.

0.5

12/04/20 Meeting with B. Ringleb, A. Liang, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss the status of tasks, including impairment and tax procedure documentation.

0.5

12/04/20 Meeting with B. Ringleb, M. Jones, A. Adekanbi, K. Kimbrough and T. Martin (KPMG) to discuss the status of tasks, including impairment and tax procedure

documentation. 0.5 Adeola Adekanbi Sr. Manager - Audit

12/04/20 Meeting with M. Jones, B. Ringleb, A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss the status of tasks, including impairment and tax procedure documentation.

0.5

Kevin Kimbrough

12/04/20 Senior associate review, as of 12/04/20, of documentation in KPMG Clara workflow related to Joint Venture Control.

Audit

12/04/20 Meeting with A. Adekanbi (KPMG) to review of impairment estimates workpaper and Marketing backlog report control.

(21)

Adeola Adekanbi

Sr. Manager - Audit

12/04/20 Meeting with T. Martin (KPMG) to review of impairment estimates workpaper and Marketing backlog report control.

0.7

12/04/20 Manager review, as of 12/04/20, of the responses provided to EVS's initial set of questions based on the review of the discount analysis.

0.9

12/04/20 Update, as of 12/04/20, the impairment walkthrough for documentation of assumptions inputs for a specific rig.

EVS

12/04/20 Creating sensitivity analysis. 1.0

Kevin Kimbrough

12/04/20 Perform substantive testing for non-payroll operating expenses.

Audit

12/04/20 Began to document the tax controls design and implementation.

EVS

12/04/20 Review, concurrently extracting the beta / credit rating profiles as well as the energy yield curves for both the Q1 / Q2 analysis.

1.2

12/04/20 Update, as of 12/04/20, the impairment estimates workpaper documentation to address manager comments, concurrently incorporating supporting documentation for control 5.8a into audit file.

1.3

12/04/20 Create the Weighted Average Cost of Capital model for the Q1 impairment analysis including inputting the data into the model. 2.0 Kevin Kimbrough Sr. Associate - Audit

12/04/20 Vouching non-payroll operating expense debits. 2.1

Adeola Adekanbi

Sr. Manager - Audit

12/04/20 Perform senior manager review, as of 12/04/20, of impairment related testwork.

Audit

12/04/20 Continue, from earlier in the day on 12/04/20, to document the tax controls design and implementation.

Audit

12/04/20 Began creating the process narrative for payroll. 3.3 Melinda Jones Associate -

Audit

12/04/20 Continue, from earlier on 12/04/20, creating the process narrative for payroll (2.0) Begin preparing the payroll flowchart. (1.4) 3.4 Adeola Adekanbi Sr. Manager - Audit

12/05/20 Senior manager review, as of 12/05/20, of Taxes D&I (Design & Implementation) for controls along with relevant documentation. 2.1 Adeola Adekanbi Sr. Manager - Audit

12/05/20 Senior manager review, as of 12/05/20, of fixed asset D&I (Design & Implementation) for controls along with relevant documentation.

3.9

12/07/20 Communication with A. Liang (KPMG) regarding status and go-forward required processes over the next 2 weeks.

(22)

12/07/20 Manager review, as of 12/07/20, of CERAMIC workpaper / screen / documenting the ICOFR principles and controls addressing such principles.

0.3

Brad Ringleb Partner - Audit 12/07/20 Meeting with A. Adekanbi, C. Homm, A. Liang, K.

Kimbrough, M. Jones and T. Martin (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to complete during the day on 12/07/20.

0.3

12/07/20 Meeting with B. Ringleb, A. Adekanbi, A. Liang, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to complete during the day on 12/07/20.

0.3

12/07/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, A. Liang, K. Kimbrough and M. Jones (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to

complete during the day on 12/07/20.

0.3

Kevin Kimbrough

12/07/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, A. Liang, M. Jones and T. Martin (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to complete during the day on 12/07/20.

0.3

12/07/20 Meeting with B. Ringleb, A. Adekanbi, C. Homm, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to complete during the day on 12/07/20.

0.3

12/07/20 Meeting with B. Ringleb, C. Homm, A. Adekanbi, A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to complete during the day on 12/07/20.

0.3

Adeola Adekanbi

Sr. Manager - Audit

12/07/20 Meeting with B. Ringleb, C. Homm, A. Liang, K.

Kimbrough, M. Jones and T. Martin (KPMG) to discuss the status of procedures for tax, impairment, payroll, and tasks to complete during the day on 12/07/20.

0.3

12/07/20 Manager review, as of 12/07/20, of Treasury response tab, including risks not linked to control / substantive procedures, concurrently reviewing updated documentation on control deficiency to gain insight into impact.

0.4

Brad Ringleb Partner - Audit 12/07/20 Meeting with A. Liang and A. Adekanbi (KPMG) to discuss plan for completion of remaining tax controls screens and documentation. 0.4 Adeola Adekanbi Sr. Manager - Audit

12/07/20 Meeting with A. Liang and B. Ringleb (KPMG) to discuss plan for completion of remaining tax controls screens and documentation.

(23)

12/07/20 Meeting with B. Ringleb and A. Adekanbi (KPMG) to discuss plan for completion of remaining tax controls screens and documentation. 0.4 Adeola Adekanbi Sr. Manager - Audit

12/07/20 Communication regarding the tax estimates workpaper relevant assumptions and data elements to B. Ringleb and A. Liang (KPMG).

0.5

12/07/20 Create weekly agenda, concurrently updating one note for tasks this week, as of 12/07/20.

Audit

12/07/20 Manager review, as of 12/07/20, of new firm guidance related to cash / identify applicability to this audit.

Audit

12/07/20 Manager review, as of 12/07/20, of test of effectiveness of Accrual report tested by engagement team as key report, concurrently reviewing Expenditure response screen linking risks to control / substantive procedures performed to address such risk.

0.5

Brad Ringleb Partner - Audit 12/07/20 Meeting with A. Adekanbi (KPMG) to discuss the Continuous Improvement (CI) ready workshop survey responses and plan.

0.5

12/07/20 Meeting with A. Liang, K. Kimbrough and M. Jones (KPMG) to debrief the continuous improvement workshop / implementation plans for project management enhancements.

0.5

Kevin Kimbrough

12/07/20 Meeting with A. Liang, M. Jones and T. Martin (KPMG) to debrief the continuous improvement workshop /

implementation plans for project management enhancements. 0.5

Adeola Adekanbi

Sr. Manager - Audit

12/07/20 Meeting with B. Ringleb (KPMG) to discuss the Continuous Improvement (CI) ready workshop survey responses and plan.

0.5

12/07/20 Meeting with M. Jones, K. Kimbrough and T. Martin (KPMG) to debrief the continuous improvement workshop / implementation plans for project management enhancements.

0.5

12/07/20 Manager review, as of 12/07/20, of initial documentation / analysis of the valuation provided by Audit.

0.8 Faye Wang Sr. Associate -

International Tax

12/07/20 Update, as of 12/07/20, of the information request list related to Rowan Q1 2020 Transactions.

2.0

12/07/20 Began documenting the tax controls design and implementation procedures performed.

2.9 Adeola

Adekanbi

Sr. Manager - Audit

12/07/20 Perform senior manager review, as of 12/07/20, of Joint venture D&I (Design & Implementation) for controls with relevant documentation.

(24)

12/07/20 Continue, from earlier in the day on 12/07/20, documenting the tax controls design and implementation procedures performed. 3.4 Kevin Kimbrough Sr. Associate - Audit

12/08/20 Meeting with A. Adekanbi (KPMG) regarding journal entry samples sent to client.

0.1

Adeola Adekanbi

Sr. Manager - Audit

12/08/20 Meeting with K. Kimbrough (KPMG) regarding journal entry samples sent to client.

Audit

12/08/20 Senior associate inspection, as of 12/08/20, of the guidance to verify the applicability of professional practice letter 20-008.

0.2

12/08/20 Associate inspection, as of 12/08/20, of the guidance to verify the applicability of professional practice letter 20-008.

0.2

Kevin Kimbrough

12/08/20 Communication regarding meeting with T. Gault (Valaris) and A. Liang (KPMG) to discuss Journal Entry Population.

Audit

12/08/20 Discussion with A. Adekanbi (KPMG) regarding the applicability of Professional Practice Letter 20-008 / required workpaper documentation.

0.2

Adeola Adekanbi

Sr. Manager - Audit

12/08/20 Discussion with T. Martin (KPMG) regarding the applicability of Professional Practice Letter 20-008 / required workpaper documentation.

0.2

Kevin Kimbrough

12/08/20 Meeting with A. Liang (KPMG) to discuss journal entry controls sampling.

Audit

12/08/20 Meeting with K. Kimbrough (KPMG) to discuss journal entry controls sampling.

Audit

12/08/20 Meeting with T. Gault (Valaris) to discuss journal entry review control sampling with Internal Audit.

Audit

12/08/20 Requested walkthrough with A. Qureshi (Valaris) to obtain understanding of backlog report preparation.

Audit

12/08/20 Clear highlights along with review comments for the impairment placemat comparison.

Audit

12/08/20 Communication regarding follow-up with F. Wang and J. Hiller (KPMG) regarding risk assessment.

EVS

12/08/20 Continue to document the procedures performed by KPMG EVS in a memorandum for delivery to the KPMG Audit Team.

0.8

12/08/20 Manager review, as of 12/08/20, of initial documentation with analysis of the valuation provided by Audit.

0.4 Kevin

Kimbrough

12/08/20 Meeting with A. Liang (KPMG) and T. Gault (Valaris) to discuss and identify journal entry sources indicative of system versus manual entries in the journal entry population.

(25)

12/08/20 Meeting with A. Liang, K. Kimbrough and M. Jones (KPMG) to discuss status of tasks performed throughout the day, as well as setting an agenda for weekly check-in with Internal Audit.

0.4

12/08/20 Meeting with A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss status of tasks performed throughout the day, as well as setting an agenda for weekly check-in with Internal Audit. 0.4 Kevin Kimbrough Sr. Associate - Audit

12/08/20 Meeting with A. Liang, M. Jones and T. Martin (KPMG) to discuss status of tasks performed throughout the day, as well as setting an agenda for weekly check-in with Internal Audit.

0.4

12/08/20 Meeting with K. Kimbrough (KPMG) and T. Gault (Valaris) to discuss and identify journal entry sources indicative of system versus manual entries in the journal entry population.

0.4

12/08/20 Meeting with K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss status of tasks performed throughout the day, as well as setting an agenda for weekly check-in with Internal Audit. 0.4 Kevin Kimbrough Sr. Associate - Audit

12/08/20 Senior associate review, as of 12/08/20, of journal entry documentation, concurrently noting procedures to be accomplished before year end.

0.4

12/08/20 Allocate sample selections for the journal entry controls testing within the KPMG Audit team.

Audit

12/08/20 Document the design test of details screen for impairment substantive procedures.

0.5 Brad Ringleb Partner - Audit 12/08/20 Meeting with A. Adekanbi (KPMG) to discuss the Audit

plan slides and estimates population to be discussed with new Second Partner reviewer assigned to the team.

0.5

Adeola Adekanbi

Sr. Manager - Audit

12/08/20 Meeting with B. Ringleb (KPMG) to discuss the Audit plan slides and estimates population to be discussed with new Second Partner reviewer assigned to the team.

0.5

Jeff Hiller Sr. Manager - International Tax

12/08/20 Prepare responses to tax questions from audit related to Uncertain Tax Positions and Valuation Allowance internal control considerations. 0.5 Kevin Kimbrough Sr. Associate - Audit

12/08/20 Senior associate review, as of 12/08/20, of documentation for Entity Level Ceramic controls to be tested at year end.

0.5 Kevin

Kimbrough

12/08/20 Senior associate review, as of 12/08/20, of Journal Entry populations for discussion with client.

Audit

12/08/20 Communication with A. Adekanbi (KPMG) regarding plan for tax estimates workpapers.

(26)

12/08/20 Meeting with A. Adekanbi, A. Liang, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss the engagement status and tasks to be performed during the day, including taxes, impairment, payroll / journal entry routines.

0.6

12/08/20 Meeting with A. Adekanbi, C. Homm, A. Liang, K. Kimbrough and M. Jones (KPMG) to discuss the

engagement status and tasks to be performed during the day, including taxes, impairment, payroll / journal entry routines.

0.6

12/08/20 Meeting with A. Adekanbi, C. Homm, A. Liang, K. Kimbrough and T. Martin (KPMG) to discuss the

engagement status and tasks to be performed during the day, including taxes, impairment, payroll / journal entry routines.

0.6

Kevin Kimbrough

12/08/20 Meeting with A. Adekanbi, C. Homm, A. Liang, M. Jones and T. Martin (KPMG) to discuss the engagement status and tasks to be performed during the day, including taxes, impairment, payroll / journal entry routines.

0.6

12/08/20 Meeting with A. Adekanbi, C. Homm, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss the engagement status and tasks to be performed during the day, including taxes, impairment, payroll / journal entry routines.

0.6

Adeola Adekanbi

Sr. Manager - Audit

12/08/20 Meeting with C. Homm, A. Liang, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss the engagement status and tasks to be performed during the day, including taxes, impairment, payroll / journal entry routines.

0.6

Kevin Kimbrough

12/08/20 Prepare plan for items to be completed, specifically Journal Entry documentation / Team of Choice discussion/ GDC procedures for treasury.

0.6

Kevin Kimbrough

12/08/20 Select journal entry samples from Q1 and Q2 populations (.5) and send to T. Gault (Valaris) (.1).

0.6 Kevin

Kimbrough

12/08/20 Senior associate review, as of 12/08/20, of journal entry documentation, concurrently noting which procedures need to be accomplished before year end.

0.6

Kevin Kimbrough

12/08/20 Senior associate review, as of 12/08/20, of prior year documentation for Journal Entry routines.

Audit

12/08/20 Document the involvement agreement workpaper documentation for professional practice letter 20-008.

0.7 Kevin

Kimbrough

12/08/20 Meeting with A. Liang (KPMG) to discuss project planning tasks / approach to familiarize with status of journal entry routines in the KPMG Clara Workflow.

0.8

12/08/20 Meeting with K. Kimbrough (KPMG) to discuss project planning tasks / approach to familiarize with status of journal entry routines in the KPMG Clara Workflow.

(27)

Adeola Adekanbi

Sr. Manager - Audit

12/08/20 Perform senior manager review, as of 12/08/20, concurrently updating the Journal Entry Test of operating effectiveness controls.

0.8

12/08/20 Manager review of Journal Entry substantive testing. (.5) Review of prior year workpapers to obtain better

understanding of testwork to be performed and gain understanding of overall journal entry testwork procedures (.4).

0.9

Brad Ringleb Partner - Audit 12/08/20 Meeting with A. Adekanbi and A. Cabble (KPMG) to discuss the Audit plan slides / preliminary identified estimates population.

1.0

Andy Cabble Partner - Audit 12/08/20 Meeting with A. Adekanbi and B. Ringleb (KPMG) to discuss the Audit plan slides / preliminary identified estimates population. 1.0 Kevin Kimbrough Sr. Associate - Audit

12/08/20 Meeting with A. Liang and A. Adekanbi (KPMG) to discuss journal entry populations / testing as it relates to financial reporting. 1.0 Adeola Adekanbi Sr. Manager - Audit

12/08/20 Meeting with B. Ringleb and A. Cabble (KPMG) to discuss the Audit plan slides / preliminary identified estimates population.

1.0

12/08/20 Meeting with K. Kimbrough and A. Adekanbi (KPMG) to discuss journal entry populations / testing as it relates to financial reporting. 1.0 Adeola Adekanbi Sr. Manager - Audit

12/08/20 Meeting with K. Kimbrough and A. Liang (KPMG) to discuss journal entry populations / testing as it relates to financial reporting. 1.0 Adeola Adekanbi Sr. Manager - Audit

12/08/20 Perform senior manager review, as of 12/08/20, of tax controls.

Audit

12/08/20 Update, as of 12/08/20, the weekly tracker for this week's tasks, concurrently Update unallocated items in project plan.

1.0 Ashley Moore Sr. Associate

Advisory

12/08/20 Continue, from earlier 12/08/20, senior associate review of KCW Clara GITC (General IT Controls)/ TOE (Testing of Operating Effectiveness) documentation / Work paper.

1.2

12/08/20 Document the control operator judgment to identify, concurrently concluded on outliers for impairment model review.

1.5

12/08/20 Document tax controls design and implementation procedures Perform. 2.0 Adeola Adekanbi Sr. Manager - Audit

12/08/20 Prepare for discussion of Audit plan with Partner by reviewing status / deadlines as well as preparing discussion notes.

2.0

12/08/20 Download each revenue attachment from KCW and uploading each attachment to DRMS

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12/08/20 Associate inspection, as of 12/08/20, of significant variances in capital expenditures between impairment placemats.

3.0

Adeola Adekanbi

Sr. Manager - Audit

12/08/20 Continue, from earlier on 12/08/20, to perform senior manager review, concurrently updating the Journal Entry Test of operating effectiveness controls.

3.1

12/08/20 Completed the flowchart and walkthrough documentation. 3.4 Ashley Moore Sr. Associate

Advisory

12/08/20 Continue, from earlier 12/08/20, senior associate review of KCW Clara GITC (General IT Controls)/ TOE (Testing of Operating Effectiveness) documentation / Work paper.

3.4

Ashley Moore Sr. Associate Advisory

12/08/20 Senior associate review, as of 12/08/20, of KCW Clara GITC (General IT Controls)/ TOE (Testing of Operating Effectiveness) documentation / Work paper.

3.4

12/08/20 Document the procedures performed by KPMG EVS in a memorandum for delivery to the KPMG Audit Team.

3.2

Jae Kim Managing

Director - International Tax

12/09/20 Discussion with D. Armour (Valaris) regarding Q4 2020 tax provision.

0.1

12/09/20 Compiled geographic revenue and rig locations information for the Valuation team in the discount rate analysis.

Audit

Kimbrough and M. Jones (KPMG) to discuss status of tasks in progress, including taxes, impairment, payroll and expenditures.

0.2

Kimbrough and T. Martin (KPMG) to discuss status of tasks in progress, including taxes, impairment, payroll and expenditures. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/09/20 Meeting with A. Adekanbi, C. Homm, A. Liang, M. Jones and T. Martin (KPMG) to discuss status of tasks in progress, including taxes, impairment, payroll and expenditures.

0.2

12/09/20 Meeting with A. Adekanbi, C. Homm, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss status of tasks in progress, including taxes, impairment, payroll and expenditures. 0.2 Kevin Kimbrough Sr. Associate - Audit

12/09/20 Meeting with C. Homm (KPMG) to discuss Operating Expense Nonpayroll Debit questions.

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Adeola Adekanbi

Sr. Manager - Audit

12/09/20 Meeting with C. Homm, A. Liang, K. Kimbrough, M. Jones and T. Martin (KPMG) to discuss status of tasks in progress, including taxes, impairment, payroll and expenditures.

0.2

12/09/20 Meeting with K. Kimbrough (KPMG) to discuss Operating Expense Nonpayroll Debit questions.

0.2 Kevin

Kimbrough

12/09/20 Prepare agenda to address tasks for completion today. 0.2 Kevin

Kimbrough

12/09/20 Prepare response to client email concerning Journal Entry samples, concurrently reselected 1 sample for testing.

0.2 Kevin

Kimbrough

12/09/20 Transmit communication to T. Gault (Valaris) regarding upcoming meeting to discuss Operating Expense Non-payroll debits.

0.2

12/09/20 Associate inspection, as of 12/09/20, prior year audit work for lookback/sensitivity analysis procedures over cash flows.

0.3

12/09/20 Associate inspection, as of 12/09/20, the significant variances in capital expenditures between impairment placemats.

0.3

12/09/20 Associate review, as of 12/09/20, the walkthrough support documentation for management's accrual policy / original expenditure populations used for sampling.

0.3

12/09/20 Call with A. Adekanbi (KPMG) to discuss documentation of control operator’s judgment in impairment controls,

concurrently reviewed comments / substantive procedures over cash flows.

0.3

12/09/20 Call with A. Adekanbi (KPMG) to discuss documentation of control operator’s judgment in impairment controls,

concurrently reviewed comments / substantive procedures over cash flows.

0.3

12/09/20 Call with T. Gault (Valaris) to discuss the timing of post date for expenditures recorded.

0.3 Adeola

Adekanbi

Sr. Manager - Audit

12/09/20 Call with T. Martin (KPMG) to discuss documentation of control operator’s judgment in impairment controls, concurrently reviewed comments / substantive procedures over cash flows.

0.3

Adeola Adekanbi

Sr. Manager - Audit

12/09/20 Call with T. Martin (KPMG) to discuss documentation of control operator’s judgment in impairment controls, concurrently reviewed comments / substantive procedures over cash flows.