Our Scans · (FS.2.00) Auditing · Weekly Summary

• The Big Four firms, which collectively employ 1.5 million people and audit most of the world's largest public companies, are considering new ways to hold management accountable; the past year has highlighted vulnerabilities within their governance models, which are now under intense scrutiny. Accountancy Age
• Although risk is volatile and cyber regulations constantly change, nearly half of businesses did not pass a compliance audit in the past year. Security Boulevard
• The sheer pace of emerging risks and regulations has increased the need for companies to modernize audit, risk and compliance programs. Accounting Today
• Ethical sourcing initiatives, fair trade certifications, and supply chain audits help companies mitigate social risks, enhance stakeholder trust, and promote responsible business conduct in India's diverse and complex operating environment. globalregulatoryinsights
• A few PwC partners have launched a breakaway firm in Cyprus to take on work from Russia-linked clients that the Big Four audit firms will no longer touch. Financial Mirror
• In France, a new cyberscore law will require Internet-facing platform companies to disclose report cards on cyber resiliency based on third-party audits of systems and processes. TechRadar pro
• With feasible changes in policy, the IRS could aspire to shrink the tax gap by around 15% in the next decade-generating $1 trillion in additional revenue by performing more audits, increasing information reporting requirements, and investing in information technology. NBER
• An EU-wide supply chain due diligence directive is in the pipeline, which will require large EU firms, and international firms doing business in the EU, to conduct comprehensive ESG audits of global supply chains and take action where required. Supply Management
• PwC has generated the greatest revenue of the Big Four from tax, audit & risk advisory services, whereas the highest earning service line for Deloitte has consistently been consulting. Statista
• Financial institutes may focus on employing managed security service providers or any top cyber security companies in USA, to help them identify and mitigate risks on a real-time basis while providing them with audits for compliance to meet regulatory expectations. TechBullion
• Automated audits and compliance checks with artificial intelligence can identify potential compliance gaps with regulations such as the Payment Card Industry Data Security Standard (PCI DSS), enhancing operational efficiency and mitigating risk. paymentsjournal
• Most recently, the US branch of Big Four firm PwC announced that it will invest $1bn over the next three years to expand its use of AI technology - including large language models such as Chat GPT - among its tax, accounting, audit and advisory teams. Accountancy Age
• Companies will have to do their due diligence when it comes to reassessing their risk assessment policies in 2023, ensuring they perform robust, effective risk assessments that can be viewed as audit-ready in the event an issue arises. Digital Guardian
• Global investment in cryptocurrency companies fell to $14.2 billion in the first half of 2022, down from a record $32.1 billion last year, a slowdown that is expected to continue according to a report by global audit and advisory firm, KPMG. BITNEWSBOT.COM
• Stack employs its Breach Prediction Index algorithm to reduce the risk of cloud vulnerabilities and improve IAM audits, compliance, and governance. CSO Online
• Individuals with expertise in global transfer pricing, compliance, regional audit trends, changing tax environments, and inflation-related hedging will choose to work at companies that make them feel valued and offer them the best experience. BlackLine
• Many legacy or modern AP automation solutions lack the ability to capture the depth of information needed to guarantee accuracy, reduce risk and ensure audit compliance. Spend Matters
• The complexity and expensiveness of audits in emerging markets, may make German companies re-think their outsourcing strategy, and move back production to countries closer-to-home, where it might be relatively easier to ensure compliances. BTG Legal
• For sexual harassment and violence, OECD due diligence guidance considers it unlikely that issues will be flagged during audits and so companies are expected to consider sexual violence a risk if it is a risk in the operating context regardless of whether or not it has been raised in an assessment. IndustriALL
• The FRC will be alert to audit or sustainability assurance reporting or ethics issues that may arise. IFAC
• The introduction of the Self-Audit Finding service highlights Dubai customs' clear intention to raise the level of compliance with customs regulations, and provides importers with an opportunity to voluntarily come forward. PwC
• PriceWaterhouseCoopers plans to invest $1 billion over three years in generative AI Microsoft and OpenAI will help the accounting and consulting giant to automate its tax, audit, and consulting services. AI Scares Deep Learning Pioneer Geoffrey Hinton, Radio

Last updated: 16 April 2024