Posts Tagged “audit”

The job profile of the Data Scientist is still young, but is often searched for on the job market. They are required in many industries, such as:

• Banking and insurance 
• Trading
• Business and organizational consultancies, market researching
• Social Media, Telecommunications, online tradinging and network management
• Bio-, pharmaceutical, chemical and medical industries
• Logistics
 

 
In 2012, Tom Davenport, Professor at the Harvard Business School, has described the competence profile as following: „… a hybrid of data hacker, analyst, communicator, and trusted adviser. The combination is extremely powerful – and rare.“
In times of “big data”, Data Scientists are experts in demand, who are paid above average and enjoy great freedom in companies as “gold diggers”. Using methods of mathematics, computer science and statistics, they gain facts and knowledge from large amounts of data, the “gold of the 21st century”, and discover new business areas. In addition, they are something like interpreters. They formulate the data records into legible results and display the essential information in a comprehensible language.
Data Scientists are trained in statistics, graph theory and other mathematical fields, and are proficient in methods such as data mining, process mining, machine learning and natural language processing (NLP). Added to this is knowledge from practical computer science. Knowledge of operating systems, databases, networks and data integration tools, as well as the most important programming languages and analytics tools are mandatory. Furthermore, knowledge about the Hadoop ecosystem, social networks and other systems from the internet and big data environment is a compulsory requirement for professional practice. The competency profile is that of an all-round talent and accordingly (currently) difficult to find.
 
The Data Scientist and the financial function within the company
The question whether a controller can assume the tasks of a Data Scientist must be clearly denied in the context of the described competence profile. The current opinion in the industry is, that it is illusory to believe that controllers could also assume the tasks of a Data Scientist. However, controllers should know the job profile of a Data Scientist as well as the possibilities and limitations of Big Data. The cooperation between the tasks of a controller and a Data Scientist is an important source for the future economic success of companies.
 
The Data Scientist and Auditing
The advancing digitization also places new challenges on internal auditing in the selection of the audit methodology. Data Science offers the possibility to consider the analytics of data masses as a test step within an audit and in this way to create an additional benefit. This means, however, that the internal audit department must also acquire expertise in data science in addition to the already acquired competences, such as finance, business management and compliance. Since an individual auditor can hardly have all the competences mentioned above, these should be at least available within the team. If necessary, remember to include an external Data Scientist.
Along the lines of internal auditing, the external auditing is placed before conditions that were changed by digitization: the flood of data, the appropriate audit methods as well as the concern of finding young recruits within the auditors underline the need for efficiency gains. The surge in job advertisements for data scientists in audit centers, as well as first attempts to use artificial intelligence in this area, underscores this.

This feature blog was written by Prof. Dr. Nick Gehrke (Zapliance)

According to a new study of more than 1,600 chief audit executives (CAEs), senior management and board members released by professional services specialist PwC yesterday, internal audit functions that have very effective leadership perform better and add greater value to their businesses.
The Big 4’s study found that more than 50% of participating stakeholders now believe internal audit is contributing significant value to the business.This is a significant increase on the same study conducted last year. It is also hoped that internal auditors will add considerable value and leadership within a company in the 5 years after joining.

The value of leadership

There is close correlation between strong leadership and internal audit’s ability to add value and deliver high performance,To continue fostering internal audit functions to become more trusted advisors within their organizations, stakeholders should promote strong internal audit leadership while audit executives work to elevate the performance and perceptions of their respective functions.

PwC also identified five characteristics consistently exhibited by the most effective internal audit leaders that all CAEs should adopt:

1)
Create and follow through on a vision.
PwC found that very effective internal audit leaders possess a strong vision that aligns with both a company’s strategic direction and stakeholders’ expectations. These leaders translate their visions into strategic plans and invest in capabilities in support of their vision, especially data analytics and technological tools that allow them to innovate on process.

2)
Source and retain the right talent.
According to PwC’s study, CAEs identified talent shortages as the most significant barrier to increasing their contributions as leaders. Additionally, as business transformation continues to evolve, additional new skills are needed. PwC says the most effective internal audit leaders exhibit two talent behaviors that stand out from the pack: a focus on mentorship and talent development, and an ability to source the right talent when needed.
PwC says very effective internal audit leaders also have a “no hierarchy in the room” policy, which facilitates staff development through open discussion and working as a team to solve problems. Fully 73 percent of these leaders use co-sourcing as part of their talent strategies.

3)
Empower the internal audit function.
Organizational position and the support of stakeholders plays an important role in the effectiveness of internal audit leaders. PwC found that 78 percent of very effective internal audit leaders are vice presidents or hold senior positions in their organization. Additionally, PwC found stakeholders are gravitating toward more senior leadership talent to fill the CAE role, noting their responsibility to empower the CAE by setting a culture that supports the importance of a strong control environment.
Demonstrate executive presence. Underscoring the need for leadership talent in the CAE role, PwC found that 90 percent of very effective internal audit leaders excel in demonstrating executive presence. They bring bold perspectives and think broadly about the company. PwC notes that internal audit leaders must inform, educate and influence stakeholders as well as earn their trust. One of the trickier challenges internal audit leaders face is communicating with a variety of internal and external stakeholders who each have different expectations of the function.

4)
Partner with the business in meaningful ways.
The most effective internal audit leaders set themselves apart by partnering with the business in meaningful ways. PwC says internal auditors should be able to stand out in three specific behaviors to become a very effective leader:
Develop relationships built on trust.
Build partnerships across the lines of defense to play greater roles in coordinating risk management across functions.
Use those connections to raise their level of engagement across the organization, taking on leadership roles in working with management, compliance, legal and other assurance functions to develop an integrated assurance strategy.
PwC notes that some very effective internal audit leaders have taken to renaming the internal audit function (e.g., to audit services) to rebrand it as a collaborative functions that partners with the business.

5)
Seeing clear and strategically
“It’s through close alignment with various stakeholders and owning internal audit’s role as a leadership function within the organization that can allow internal audit to help their companies keep up with the changing business and risk landscape,” Pett said. “But all this can’t be said and done without a clear vision, supported by a strategic plan and enabled with top talent.

For the full article click http://www.cio.com/article/3042157/leadership-management/5-characteristics-of-exceptional-internal-audit-leaders.html

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.”

It is reported that Deloitte LLP may be obstructed from auditing companies in Saudi Arabia after the country’s market regulator communicated to firms registered in the kingdom to stop using its local services, according to reports.
The Capital Market Authority stated in the circular dated Nov. 27 that publicly traded companies it regulates should avoid working with Deloitte’s Saudi Arabian practice as of June 1. The ban could be revoked if Deloitte resolves a dispute the regulator didn’t specify. The matter relates to Deloitte’s audit work for a construction-industry services provider based in Dammam, Saudi Arabia.
The kingdom, the largest Arab economy, is tightening rules on corporate governance as it plans to open its $500 billion stock market to foreigners next year. The CMA, as the regulator is known, last month initiated a probe to determine if Etihad Etisalat Co. violated rules after the telecommunications company blamed auditing errors for a drop in profit that led to a stock market sell-off.
“It seems clear that the CMA is cracking down on auditing standards as it prepares for the opening of the stock market to foreign investors next year,” Shrouk Diab, assistant vice president of research at NBK Capital exclaimed.
Deloitte operates in the kingdom as Deloitte & Touche Bakr Abulkhair & Co., and has had a practice there for more than 50 years, according to its website. It audits 35 listed companies in Saudi Arabia.

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

 

October seen the US job growth increase considerably and the unemployment rate fell to a new six-year low of 5.8%, highlighting the economy’s resilience in the face of slowing global demand.

However this did not reflect the wage growth as it remained lukewarm signifying the US Federal Reserve would be in no hurry to start lifting interest rates.

Over 214000 new jobs were created by US employers according to reports by the Labor Department.

The unemployment rate fell nearly 6% and the fall came despite more people entering the labour force, which is a strong sign in the job market.

New reports from August and September amended the stats showing over 30,000 jobs were created than had been originally reported.

US job growth has surpassed 200,000 in each of the last nine months, sufficient strength to keep the economy on a higher growth path after it expanded at a 3.5% pace in the third quarter.

The relatively strong pace of job gains also signals that the slack in the labour market is being absorbed.

The Fed last month struck a fairly upbeat tune on the jobs picture as it ended its bond buying programme, dropping its characterisation of labour market slack as “significant” and replacing it with “gradually diminishing.”

Secure job gains on their own, however, will probably not be enough to convince the Fed to start raising interest rates before the second half of 2015 given a still low level of inflation.

Wage growth is the missing piece of the US jobs recovery and without significant increases; most economists say the Fed will be in no rush to lift benchmark lending rates that it has kept near zero since December 2008.
Details of the October employment report were fairly upbeat. The labour force participation rate and the ranks of the long-term unemployed both improved.

The employment-to-population ratio increased to 59.2, the highest level since 2009.

A broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment fell to 11.5%, the lowest level since September 2008.

In terms of sectors and trends for employment, it was reported as following:

Private-sector employment increased by nearly 210,000, with a second month of gains in manufacturing and an increase in construction.

Retail hiring advanced by 27,100 as shops gear up for a busy shopping season.

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

 

Keywords: non-farm payrolls, us economy, us federal reserve, us unemployment

 

  • Confidence 14 percent higher than June 2012 but static since the start of the year
  • Japan and US among top performers in both appetite and capacity for deal-making
  • Healthcare, consumer discretionary and industrial sectors show highest confidence year-on-year
  • Capacity to transact expected to rise 13 percent, with healthcare and technology sectors anticipated to increase the most

 

KPMG International’s latest Global M&A Predictor shows that deal appetite among the world’s largest companies is higher than it was 12 months ago, with forward P/E ratios – a measure of confidence, or appetite – up 14 percent from June 2012.

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