Risk Audit

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned according to the April 2015 Adviser Rankings for the UK, that BDO has retained its premier ranking as the firm with the biggest chunk of AIM clients at 152, just two above KPMG with 150.

In the fourth position we can find PwC with 120 clients, after securing an additional audit win, while Baker Tilly retained its seventh position with 58 clients, after a gain of two, with Crowe Clark Whitehill in eighth with 43 clients.

FTSE AIM 100 ranking as been published as well. In this index, PwC retains its crown with 31 clients, after a gain of three, while BDO move up to fifth with nine clients. Baker Tilly meanwhile kept its seventh spot with four clients, after a gain of one.

Speaking about the sector ranking BDO dominates the basic materials turf with 31 clients. It also bosses the consumer goods market with nine clients, while KPMG takes first place in the consumer service stakes with 16 clients. Grant Thornton leads the technology sector with 27 clients while rising to the top of both the healthcare and industrials sectors. In oil and gas, BDO rule supreme with 25 clients while Baker Tilly and Jeffreys Henry both move up into the top ten.

Finally, KPMG is the dominant auditor of the stock market clients overall with 399, followed by PwC with 360 and Deloitte with 276.

 

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Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned the professional services firm PwC has named Stephen O’Hearn as its global insurance leader. He substitutes David Law, who retires in June.

Previously, Mr. O’Hearn led PwC’s insurance practice in New York. However, currently he leads PwC’s insurance practice across Europe, the Middle East and Africa, commonly known as EMEA region, from his office placed in Zurich. O’Hearn is a member of the board of directors of the International Insurance Society as well.

Recently, Mr. O’Hearn declared: “It has been a pleasure to have worked closely with David over many years. He also added regarding his colleague: “His leadership has been key to the development of PwC’s global insurance practice. I am honored to have the opportunity to lead this practice”

Looking at the future he said: “These are exciting times for insurers as they capitalize on innovative technologies to serve the needs of families and businesses. We look forward to supporting the efforts of the insurance industry globally.”

PwC’s outgoing global insurance leader, David Law, said: “It has been a privilege to serve as the leader of PwC’s global insurance practice. I am very proud of our team and the part we have played in helping our clients face the many challenges and opportunities the insurance industry brings”

Regarding his successor he concluded: “Stephen has a wealth of experience and I have every confidence that under his leadership, the practice will continue to go from strength to strength.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned that Auditors in the UK are responding positively, and in some cases quite innovatively, to the UK’s new auditor reporting requirements. This is the main conclusion of a recent UK Financial Reporting Council report “Extended auditor’s reports: A review of experience in the first year”.

Mentioned report studied 153 audit reports between July and September 2014 that were issued under the new regulations. These regulations sought to make auditor reports more meaningful and less boilerplate, requiring auditors to describe assessed risks of material misstatement, explain their application of materiality and describe the scope of the audit.

Among all reports studied, 63 were for FTSE100 companies and 147 were by the 4 largest audit firms. The range of innovations have included the use of diagrams and graphs, the relocation of the audit opinion and more detailed analysis of risks. The innovations, as well as a few areas where improvement is still needed, especially the provision of entity specific disclosures, are set out in the media release.

The IAASB released similar audit report reforms by earlier this year, reflecting significant calls from stakeholders worldwide for audit reports to be more useful and communicative and these have an implementation date of December 2016. A range of resources, known collectively as the Auditor Reporting toolkit have been published by the IAASB to help practitioners become familiar with the new requirements. They include an “At a glance” summary and an accompanying presentation supporting the new and revised standards.

Analogous reforms are also being considered by the US PCAOB and have been implemented in the EU, with the European Federation of Accountants (FEE) recently issuing a report demonstrating how the EU and new IAASB requirements align.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned the Chartered Institute of Internal Auditors is to update its qualifications to reflect the profession’s increasingly global stance.

IIA organization will adopt the IIA Certified Internal Auditor (CIA) certification, which develops and assesses practitioner skills and the new Qualification in Internal Audit Leadership (QIAL) From June 2015.

The IIA decided to develop the offering, which provides experienced heads of internal audit with the opportunity to gain recognition for their leadership skills and gain chartered status.

IIA’s chief executive, Ian Peters, recently declared: “Internal auditing is now a global profession, as organisations operate in increasingly internationalised and co-dependent markets around the world. This often requires internal auditors to work across borders to consistent standards. In this context, internal audit is playing an increasingly strategic role within organisations”

He also added: “it’s vital that as the demands and expectations on internal auditors grow as a result, and recognition of the value of the profession increases, we are providing qualifications which are globally recognised and which equip practitioners with all the skills they need to help their employers meet today’s challenges”

Finally, he concluded: “We have also seen the specific training needs of employers and internal auditors in all sectors change. Organisations know that internal auditors gain valuable insight and transferable skills, so often a period in internal audit is now a key part of an individual’s career progression.”

Regarding those who currently are studying, a three year transition programme will enable to switch their studies to the new qualifications and for existing qualification holders to add the new designations.

For further information, IIA has published detailed information on its website and The Institute is contacting as well all qualified and studying members to explain how the changes affect.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Economic and political uncertainty fused with volatility, regulatory compliance, and operational risk continue to cause major angst among global audit committees, a survey bu Consulting giant KPMG has revealed.
The survey of over 1,500 audit committee members across 36 countries exposed that for the second successive year, respondents reported that they found it “increasingly difficult” to oversee major risks in addition to financial reporting.

Three out of four respondents said the time required to carry out their audit committee responsibilities had risen significantly (24%) or moderately (51%), while half said the role was increasingly difficult given the committee’s time and expertise.
In addition to financial reporting members of the committee admitted overseeing further risks such as cyber security

Tim Copnell, chairman of KPMG’s UK Audit Committee Institute, said: “The resounding message is that the audit committee can’t do it all. Overseeing financial reporting and audit is a major undertaking in itself, and the risk environment is clearly straining many audit committee agendas today.”

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned the ACCA (Association of Chartered Certified Accountants) welcomes and approves the IAASB’s (International Auditing and Assurance Standards Board new revisions to International Auditing Standards (ISAs)

The pursued aim of the revisions to ISAs is to ensure fundamental and relevant audit matters are explained and communicated to the end user clearly and accurately.

Enhancing both transparency around the audit and innovation in audit reporting, ACCA sees this improvement in auditor’s reports as crucial to the future value of audits.

Furthermore, ACCA believes the revisions are just in time as the value of audit continues to be challenged.

Recently, Robert Stenhouse Chair of ACCA’s Global Forum for Audit and Assurance, declared: “ACCA believes audit has a very important place in society. It provides public value through increasing confidence in financial reporting. For global capital markets this facilitates the efficient allocation and use of capital. The benefits of audit are also strongly felt in the public and not for profit sectors. The new standards are consistent and clear, and above all relevant across a very wide user base”

He also added: “ACCA sees this improvement in auditor’s reports as crucial to the future value of audits”

Robert Stenhouse considers ACCA has taken a keen and proactive interest in the developments of these new auditor reporting standards. However, he warned and concluded:  “Our work does not stop here. We will continue to champion their effective implementation and encourage our members to be bold in their use of the new standards to put on display the fantastic work they do”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

The new audit rules introduced after the financial crisis are transforming the way that recruiters and managers hire, train and promote accountants and compliance officers.

Regarding this matter, Gavin Aspden, director of qualifications at the Institute of Chartered Accountants in England and Wales (ICAEW) has declared recently: “Demands on new staff are far greater than at any other time in the accounting profession’s history,”

Also he added:  “Not only are chartered accountants facing lots of regulatory changes – they are coming at a rapid rate. This is having an impact on how employers are recruiting and the learning and development needs of trainee chartered accountants.”

Due to new limits on the length of the relationships auditors may enjoy with their clients, nearly twice as many FTSE 350 businesses are expected to tender auditor mandates this year compared with last year. PwC, the accounting group, expects up to 56 audit tenders of FTSE 350 companies this year, compared with 30 in 2013 and 18 in 2012.

This is changing who and how audit and financial services firms recruit.

For example, Gillian Lord, UK head of regulatory affairs at PwC, agrees much more is now being asked of auditors, which means they need to have greater and more varied technical skills. He affirmed: “We need a different range of people.”

Also, Panos Kakoullis, the UK’s managing partner for audit at Deloitte, believes audits have moved away from a “checklist mentality” to one where the auditor’s inquiring and challenging mind is the important attribute. However he warns: “Improving audit quality is not a journey because there is no end.”

As professional services firms grapple with those changes, they are also helping their clients deal with the very same upheaval.

Furthermore, James Woodhouse, Accenture’s head of finance and risk services for the UK and Ireland declared: “We are investing heavily in regulatory research and analysis so our people can help banks, insurers and the regulators themselves navigate, execute and operate in simpler ways,” says

“Regulation is almost completely dominating the agenda and is affecting the very structure of the financial services industry. Our clients need to face these regulatory challenges at the same time as helping their clients and continuing to make money. That’s a hard balance”

The increase in the demand for – and the pressure on – auditors could spell trouble, says Mr Aspden. They could be considered “shockwaves in the profession”, leading “aspiring accountants to interpret the changes as a sign that the profession needs fixing – potentially scaring them off”, he concluded.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

 

 

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned about the results of Audit report awards, organized by IMA, the worldwide association of accountants and financial professionals.

Three of the Big Four audited all the winning companies and the runners-up in all three categories – FTSE 100, FTSE 250 and FTSE Small Cap and AIM.

The firm which won the most mentions was KPMG. They audited three of the winning companies and five of the runners-up. Furthermore, PwC audited two winners and Deloitte audited one winner and a runner-up.

There were two awards in each category. The first award was for the most insightful audit report, which recognises the reports that give the most entity specific and enlightening information for investors to use when engaging with the audit committee.

The second was for the most innovative reports, which identifies those reports where the auditors have thought outside the box to find a way to present their findings in an engaging and readable way.

Mentioned awards were set up in the light of the introduction last year of the Financial Reporting Council’s enhanced auditor reporting rules. After the ceremony, IMA’s chief executive Daniel Godfrey declared “The success of the new audit standard is of paramount importance to the investment industry,”

He also added “Our awards are held in recognition of this alongside commending greater transparency and excellence in auditor reporting and supporting the industry’s progress.”

One of the night’s protagonist, Tony Cates as KPMG’s UK head of audit, gladly declared he was delighted with the awards which vindicated the decision to go beyond the FRC’s requirements and pilot three audit reports which included commentary from the individual audit partner on the audit findings.

In addition to that he said “This discussed qualitative matters in order to help give colour, depth, and so create a better platform for engagement between shareholders and the company”  “Those pilot reports and others have been recognised in these awards.”

Finally he concluded, “Continuing change is needed, and that is why earlier this autumn we set out a new policy of going further by reporting our audit findings where the company engages us to do so.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned of the results of a new survey conducted by Advisor Rankings that the leading audit firm PwC has become the lead AIM 100 auditor, overtaking its direct competitors after it gained three new AIM 100 clients this last quarter.

According to a quarterly report, there have been no changes in position in the full AIM rankings, which, the report says, is due to a usual period of calm in activity in the audit sector this quarter. The relative inactivity in the AIM audit market now “stands in contrast to the main board,” the report said.

In addition, mentioned report shows that BDO has retained its dominance over the full AIM market with 155 clients, despite losing seven clients this quarter. The American audit firm Grant Thornton has also lost two clients, but retains second place in the rankings with 147 clients. KPMG has 146 clients, gaining three this quarter and PwC is in fourth place with 114 clients. Deloitte is in fifth place among the main audit firms with 85 clients, followed by EY (68, down from 70), Baker Tilly (55, down from 59), Crowe Clark Whitehill (40, up from 39), UHY Hacker Young (32, up from 30) and Nexia Smith and Williamson (25).

As a conclusion the report shows that PwC’s success has been in the face of challenging audit market conditions. It considered, “The gains achieved through the period meant that the aggregate value of PwC’s stable was only down slightly on the previous quarter despite the general audit market decline.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

According to recent statements of David Sproul, CEO of Deloitte, the future of audit will require a change in thinking from auditors, investors and companies.

Definitely, Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia will accompany and advise its clients and candidates through that process of change.

Mr. Sproul also said that the audit industry was already changing, in spite of facing criticism in the years since the financial crisis for “not spotting the impending crash”.

The chief executive of the big four audit firm considers that facts as changes in the EU audit market or the investigation by the Competition and Market’s authority and the FRC’s Corporate Governance Code have started to take effect leading the audit industry to a “material and enduring increase in audit tenders”.

As an example he mentioned that within the Britain market, more than 50 of largest companies have put their audit out to tender in the last couple of years. Concerned, he added that historically they would have expected to see less than a quarter of that number”

He defined the competition among the leading audit firms as intense and specified that every tender is hard fought. In Mr. Sproul’s opinion, as a consequence of this increasing competition the audit profession must become “more active and forward thinking”

He also mentioned that the introduction of extended reporting is improving their relation with investors since reports now provide a higher level of relevant information and increased transparency around the auditing process.

Another key fact for the future of the audit industry will be technological improvements.  The use of new tools will auditors led to increase performance and make them better able to alert investors to “unusual trends and anomalies.”

Audit firms have improved the service they offer clients and investors by providing assurance outside regular reporting periods. Related to this fact, in Mr Sproul’s opinion “There is no reason why auditors couldn’t provide assurance on preliminary statements, data from investor roadshows and other updates.”

He considers also crucial to the role of the external auditor the integrated reporting, in which a business addresses not only its financial resources but also people, society, the environment and infrastructure.

To sum up, he concluded: “If a business creates value for others, in the long term, this creates value for the business. External auditors should provide comfort that management commentary is of investment grade quality.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com