Audit News Briefing: 23 October 2015

Audit-is-cool is pleased to accumulate and provide its readers with the news on audit and related topics:

October 21, 2015

Accountancy Live

Listed companies slow to adopt new UK GAAP as deadline looms

According to Deloitte research on annual reports of UK, listed companies are being slow to make the transition to the new UK GAAP financial reporting standards. This is despite the Cutting the Clutter campaign made by the Financial Reporting Council. Please follow link for details: https://www.accountancylive.com/listed-companies-slow-adopt-new-uk-gaap-deadline-looms

October 21, 2015

Accounting Today

What Star Wars Can Teach Us about Fraud and Recovery Audits

APEX Analytix’s senior vice president, global marketing & business development – Joseph Burke – recently featured a Star Wars inspired audit advisory on fraud and recovery.

Here are some excerpts:

• Lesson #1: “It’s a trap!” - Admiral Ackbar. Fraud runs rampant in organizations of any size.
• Lesson #2: “Fear is the path to the dark side.” – Obi-Wan Kenobi. Accounts payable professionals who let fear stand in the way of putting systems in place to detect duplicate payments and fraudulent losses are pulling their company down instead of raising it up.
• Lesson #3: “Do or do not. There is no try.” – Yoda. Many organizations attempt to handle recovery audits, overpayment detection and risk analysis in-house. What they’re finding is that they’re not getting the results they want.
• Lesson #4: “Someday I will be the most powerful Jedi ever.” – Anakin Skywalker. What does it take to create the most powerful of AP departments? Having a clean vendor master list is a powerful start.
• Lesson #5: “The force is strong in this one.” - Darth Vader. Isn’t this what you want your employees and customers saying about you? By putting best practices in place, you’ll have stronger internal employee relations and external supplier relationships.
• Lesson #6: “Hello, I am C-3PO, human cyborg relations. How might I serve you?” – C-3PO. There’s a sometimes unstated fear that duplicate payment and fraud detection technologies will replace a human workforce. The lesson from our goldenrod friend is that technologies are there to enhance, not replace, the workforce.
• Lesson #7: “You were the chosen one!… You were to bring balance to the force, not leave it in darkness.” – Obi-Wan Kenobi. We all have our secrets. In the AP world, for example, there are the dirty secrets of contract noncompliance and the disconnects in the procure-to-pay process that lead to big gaps in negotiated contracts and actual payment.
• Lesson #8: Luke… I am your father.” - Darth Vader. Never doubt that delivering the right punch of information can dramatically change the course of future events. Your punch should be broadcasting—both internally and externally—your intent to fight fraud and root out the source of errors in payments.

Please follow link for details: http://www.accountingtoday.com/news/audit-accounting/what-star-wars-can-teach-us-about-fraud-and-recovery-audits-76150-1.html

October 21, 2015

CGMA Magazine

U.S. Internal auditors receive modest raises

2015 Internal Audit Compensation Survey Study (published October 20, Tuesday) by the Institute of Internal Auditors (IIA) - Although internal auditors in the US and Canada generally received modest pay raises in the past year, the median salaries for many US internal audit positions decreased. Please follow link for details: http://www.cgma.org/Magazine/News/Pages/internal-auditor-salaries-201513222.aspx

October 16, 2015

Accountancy Live

PwC settles £1.6bn auditor negligence claim by subprime lender Cattles

As the case was due to be heard in the High Court in a trial starting this week and scheduled for up to four months – parties appeared before the judge to put forward their agreement. “Cattles, Welcome Financial Services and PwC confirm that they have resolved the claims between them. The terms are confidential,” PwC said in a statement.

Please follow link for details: https://www.accountancylive.com/pwc-settles-%C2%A316bn-auditor-negligence-claim-subprime-lender-cattles

October 12, 2015

Accountancy Live

Grafton Group ends KPMG 20-year audit relationship

In a Grafton Group statement: ‘The board would like to thank KPMG for their service as auditor to the group over a long period and looks forward to working with PwC in the future.’ PwC will take over as auditors with effect for the financial year ending 31 December 2016. Please follow link for details: https://www.accountancylive.com/grafton-group-ends-kpmg-20-year-audit-relationship