Posts Tagged “auditor”

The role of an IT Auditor within an organisation is to maintain the security of the company’s IT systems, ensuring they are efficient and cost effective. They must maintain the firm’s internal controls, records and data as well as to help organisations operate within the law to guarantee they’re not in breach of compliance and regulatory standards.

When it comes to the types of questions an individual can expect upon applying for IT Audit jobs, Audit International got the inside scoop when they sat down with a Company Director, to get his insights on what candidates can expect.

The likelihood is that the interviewer will start with questions aimed at getting a good sense of a candidate’s technical background. Questions around certain controls within a tech environment, networks, routers and so on.

The purpose of these questions is to get a sense of a candidate’s technical background, as well as their understanding around IT governance, IT general controls and IT risk management. This is your chance to demonstrate the way you evaluate IT and your examination of it in relation to IT risk and IT control frameworks.

Other questions will be focused on drawing out whether a candidate is right for the role in question as there are so many different specialisations within IT Audit, including cyber security, IT General Controls and applications, infrastructure or data. So, the interviewer is hoping to see where a candidate fits best within the business as well as getting an idea of the types of technologies they’ve had exposure to. This could be directed at the different types of environments you’ve had experience with, such as Linux and UNIX or it could be broader in terms of the networks and databases you’ve worked on.

In this day and age employers are definitely looking for individuals who are more technically competent and SME specialised rather than being IT generalists.

The next thing interviewers will want to assess is a candidate’s soft skills, as well as their ability to cast a helicopter view across the business as a whole, which could prompt more situational questions:

How do you face off to senior executives?
How do you deal with stressful situations?
What is your tactic for delivering negative feedback to the business or to a colleague?
If you encounter a difficult stakeholder, how would you go in and manage their expectations?

You will also be asked questions regarding your communication skills, specifically when it comes to relaying information to non-IT people. They want to see that you’re comfortable breaking down the technicalities of IT into layman’s terms in order to make it accessible to those non-technical people both at board level and elsewhere in the business.

Tell us about a project you’ve worked on.

A lot of IT Audit shops will run audits as projects which may lead to questions around specific ones you’ve worked on and other questions around project management.

Tell me about a technical problem you’ve encountered.

This is your opportunity to talk about an issue you’ve gone in to evaluate and how you’ve interacted with a non-IT user, built that relationship in order to identify the problem and worked with them to resolve it.

Moving on from soft skills, the interviewer will likely want to broach a candidate’s awareness of risk and controls. The line of questioning may be centred on databases for instance:

What types of controls would you be looking for?
Where do you think the weaknesses might be? What about areas of resilience?
Are there any security or compliance issues based on that?

Candidates really need to show how well they can evaluate these issues. It’s about providing enough detail so that you cover all the relevant points an employer would be looking for, while also contextualising your answers within the broader scope of the business’s needs. You need to show industry awareness beyond your technical qualifications.

Why do you want to work in IT Audit?

Some candidates may be coming from the Big Four, which is a fairly classical move into IT Audit, though of course other people will be coming from different backgrounds and disciplines, so the interviewer is going to want to understand the motivation behind your chosen career.

IT Audit is different to business audit, for the latter you need to be an SME in a particular area. If you’ve been working in manufacturing for 10 years, it would be very difficult for you to move into banking audits for instance. However, as an IT auditor perhaps within the cyber security space conducting third party assessments looking at cloud security and so on, though that is a very specialist area, you would have an easier transition between industries. Overall, the important thing an interviewer will be looking for is valid and researched reasons for wanting to work in that industry.

What is your perception of IT Audit, specifically with regards to this business?

This is where you can demonstrate that you’ve done your homework on the company and explain how you see the role of IT Audit and its subsequent benefit to the business. This can also lead onto a discussion around where you see your career in IT Audit progressing, whether that’s moving up the ladder of IT Audit itself or using it as a platform to move into another area of the business.

Where do you see your career going in the next 3-5 years?

The interviewer doesn’t expect you to know exactly where your career is going to go, but they do want to understand your ambition. Having a clear vision for your own professional development is reassuring for your potential employer and certainly helps them better place you within the business and collaborate in order to create value both for your personal progression and for the business itself.

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
– Switzerland 0041 4350 830 59 or
– US 001 917 508 5615
E-mail:
– info@audit-international.com”

It’s become a truism that the ‘new normal’ as the world emerges from Covid-19 lockdown will not, and cannot, be like the old normal. But what does this mean for internal auditors? What skills will be most in demand and what can you do about it if you do not feel that you have enough of these at the moment? Audit International have all these answers and more.
As in other areas of the wider economy, many of the skills that are going up in value and demand (and those that are going down) reflect longer term trends that have been exacerbated by the crisis. A strong suite of technical auditing skills now puts more emphasis on so-called ‘soft’ skills and less on some traditionally prized abilities to sift and process information, although independent judgment, logical reasoning and analysis will always be important.

IT auditing is becoming an increasingly specialist preserve that is beyond the scope of most internal auditors, however many employers now expect all internal auditors to have a strong grasp of the basics of data analytics and of what analytics programmes can do for audits and assurance. This IT-savvy must go hand in hand with a wide imagination about the potential uses of the technology and how it can be employed more effectively.
What is new, however, is that ‘soft’ skills and IT experience are no longer nice-to-haves. Whereas a few months ago, there was a shortage of internal auditors in many sectors, now employers are likely to be able to pick and choose. The post-Covid landscape is likely to be bleak for many sectors and internal auditors will not be immune. There will be redundancies and people will need to look more broadly at their CVs, personal skills development and, possibly, at the options available to them in a wider range of sectors.

Russell Bunker, director at Barclay Simpson, says that the highest demand is currently for “experienced internal auditors operating at the delivery level”. Fewer organisations are hiring senior audit managers or trainees, he says. However, he added that a number of fixed-term or interim job opportunities are emerging and there are new jobs appearing as a consequence of an increase in co-sourced internal audit work. Some of these trends may be short-lived, of course, and may reflect temporary bans on permanent hiring.

So, what are the key skills internal auditors will need to thrive in the short and longer term?
1. Communication is key
Emotional intelligence may not have always been top of the list for internal auditors, but it’s hardly a new requirement. Internal auditors have to be great communicators – if you cannot talk to people – and, just as importantly, listen to them – you can neither learn from them nor persuade and influence them.
As computers take on ever more of the analysis side of auditing, we need humans who understand how people operate in real life, what makes them tick? Internal auditors need to pick up the nuances to spot when things may be wrong behind the scenes. They need to use the right language to relate to the people they need to get on their side or to persuade people to change the way things are done and to understand the need to better governance. And they need to be able to convey important messages simply and effectively. This is not always about being ‘nice’ – it’s about being effective. Some of these messages may be tough and they need to be understood and acted on.
It’s also about being able to demonstrate the behaviour that you preach. Actions really can speak louder than words.

2. Business acumen
This has always been important, but is becoming ever more so. Internal auditors see the whole of the business from the inside, but they also need to be able to look beyond it, and beyond their sector and region, if they are to appreciate emerging risks and the bigger picture. They need to understand what keeps their CEO awake at night – and, even more importantly, what should be keeping him or her awake at night.
Increasingly, they are being expected to know a lot about the potential impacts of everything from macro economics to climate change and the complexities of supply chains. Sourcing and reviewing the most up to date and reliable information is vital, but you also need the acumen to know how this could affect your business and to spot the risks and opportunities. Those who do not display this knowledge will not gain the respect internal audit needs from senior management to be effective.

3. Flexible and agile
Speed is of the essence. How can you offer assurance more effectively, more rapidly and more effectively? This is the holy grail of internal audit and will become even more so in the post-Covid landscape. Technology can help, but it takes people to think about how they can use it better. Those with the imagination and the drive to improve, adapt and change will be most valuable to, and valued by, management.

4. Personal relationships and networking
Use your personal relationships and find out what peers, colleagues, friends and family are doing. Be curious and ask questions. This is partly about being well-informed and partly about good communications. There are loads of ways to keep in touch so use them – from social media to Facetime to old-fashioned phone calls. You never know what may come in useful in future but the broader the net, the more you are likely to benefit.

5. Proactive – use your imagination
Imagination and curiosity are now so important that they deserve a mention on their own. Again, they are not new skills for internal auditors, but they have never been more important. You don’t need a formal mentor to tell you to think about where you want your career or your audit team to be in six months’ time. But it can help to take some time out of your normal routine to practise thinking more imaginatively. Many things in the near future will need to change and someone will need to identify potential changes and the ways to achieve them.
Equally, imagination is an important part of effective communication. What are your auditees doing and why? What are they going through? What do you want them to be doing in future – and how can you help them to get there?

6. Sell, sell, sell
It’s been said that everyone is selling something – and if they say they’re not, they’re lying. Selling has a bad reputation in the UK. It’s seen as duplicitous and bad-mannered. However, sales skills are just as vital for good ends as for bad. Internal auditors are going to have to compete for attention even harder and many will have difficult messages to convey in the near future. If you want management, auditees and colleagues to listen to you and respond to your messages, you will need adequate sales skills.
And, if you’re in a sector that has been badly affected by the pandemic, you may need to brush up your CV and prepare to sell your own skills more aggressively. If you have what it takes to help organisations weather this crisis, don’t sell yourself short.

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
– Switzerland 0041 4350 830 59 or
– US 001 917 508 5615
E-mail:
– info@audit-international.com”

The Characteristics of Highly Successful Internal Auditors
Nobody knows it better than us here at Audit International that Internal auditors are a rare breed. To perform well in their jobs, they must have a set of skills and characteristics that are typically uncommon in one person. For example, they need to be analytical with laser-like focus, while also being “people-persons” with great communication skills. They need to be rule-followers, while also having the creativity and curiosity to blaze new trails. No one ever said it was easy, but becoming a top internal auditor takes dedication, hard work, and, as Liam Neeson said in the movie Taken: “a particular set of skills.”
We recently set out to identify the skills and characteristics good internal auditors must possess to perform well in their jobs. We found that some, like curiosity and integrity, are typically characteristics that are just part of our personality or not. Others, like technological know-how and communication abilities can be learned and honed through professional development and training courses. Others lie somewhere in the middle.
This is by no means an exhaustive list. There are many other skills and attributes not listed here, such as knowledge of the business, project management capabilities, and relationship building that are important to thriving as an internal auditor. Yet these are the qualifications chief audit executives, senior managers, and board members cite most often as the key abilities they are looking for in good internal auditors.
Regardless of how we acquire them, and in no particular order, here are the top six characteristics internal auditors should possess:
1) Great Communication Skills
It’s no secret that internal auditors need to be excellent communicators to execute their jobs well, however, that requirement has only increased as the COVID-19 pandemic closed offices and employees were forced to work from their homes. Now internal auditors must often conduct audits remotely, interviewing process owners and others through phone calls and video conferencing. It’s one thing to assess body language, tone, and facial expressions from across a desk or conference table, but quite another to read those important non-verbal cues during a Zoom call or over some other digital communication platform.
It doesn’t stop there. Internal auditors have many constituencies to serve. From their audit customers to senior management and the board, they must be able to navigate many relationships within the organization and sometimes bridge seemingly conflicting views on what’s important to the company. That takes great communication skills and any internal auditor that doesn’t possess them will likely falter in their roles.
2) Unyielding Curiosity
Good internal auditors ask why? Great internal auditors keep asking “why?” Like a child who follows up one question of “why?” with “OK, but why?” top internal auditors keep asking questions until they fully understand the issues at hand. They are not easily swayed with a pat answer or put off the trail with an explanation that doesn’t quite add up. Their natural curiosity keeps them pushing until they find the answers and explanations that satisfies them—in other words, when there are no more “why” questions to ask.
Such intellectual curiosity doesn’t just serve good internal auditors well in the pursuit of fraud and wrongdoing, either. It helps them fully understand how controls, processes, and business units work, so they can make recommendations to improve them.
3) Technological Savvy
Increasingly, the job of the internal auditor relies on technological tools, such as data analytics, cloud-based application platforms, and data visualization. Indeed, the internal auditor of the future will likely also need to be an expert—or at least proficient—in such areas as artificial intelligence, machine learning, and technologies still out on the horizon. For this reason, internal auditors who don’t embrace new technologies and learn enough about them to at least begin to experiment with new ways of doing things will be left behind. While it’s important to embrace the more recent technologies that internal audit is increasingly coming to rely on to execute its duties, a digital revolution is taking place in just about every facet of the organization. To complete audits of nearly any process or function will require a working knowledge of increasingly complex technologies. It’s true too, that the top risks in any organization typically involve areas like cybersecurity, data governance, and information security, all of which require internal auditors to be tech savvy..
4) Ability to Work Independently and on a Team
It might seem contradictory to say that internal auditors must be able to work on their own, but then also be good team players, but it’s true, and the remote work scenarios brought on by the pandemic have only made it truer. Internal audit has always required a good bit of independent work, but the amount has increased with remote audits and auditors working from home. The ability to work independently relies on such underlying skills as self-motivation, self-management, and accountability. Without daily meeting in the conference room and the chief audit executive looking over their shoulders, internal auditors must be resourceful and reliable to keep projects humming along. That doesn’t mean they no longer have to be able to work well with others. More recent work models, particularly agile audit, require lots of interaction and coordination. This harkens back to the importance of communication abilities, but good internal auditors are also team players.
5) Drive to Be Life-long Learners
I once asked a chief audit executive: What is the single most important thing you look for when you are hiring a new member of your internal audit team? Without hesitation, he said: “I look for someone who is always looking to learn new things.” He explained that internal auditors must be generalists and specialists at the same time. Their jobs will take them to many places and expose them to new knowledge all the time..
The fact that internal auditors get exposure to lots of different aspects and units of the business is certainly one of the benefits of the job, but it comes with challenges. They must be able to constantly digest new information and learn new parts of the business. No two audits are ever the same and without the desire to learn something new, it will be difficult for an internal auditor to approach each new assignment with the sponge-like ability to absorb new knowledge and come up to speed quickly on a process or function.
6) Integrity and Courage
Perhaps above all else, integrity and courage must be at the core traits of a high-performing internal auditor. There will be times when internal auditors are asked to look the other way or ignore some faulty control or management wrongdoing, and they must simply be able to resist the urge. It’s never easy to confront someone who isn’t doing the right thing and bring it to light, but it’s a trait that top internal auditors all possess.
One more thought on integrity and courage: We often think of these things in terms of big crises and scandals, where the internal auditor stands up to an accounting fraud that is taking place in the organization or a CEO who is up to no good. Yet it more often integrity and courage will be called up for small things, where someone is looking to cut a corner or isn’t treating others with respect. This is when integrity, along with a good moral compass can help an internal auditor push past a roadblock and get an audit back on track.
Just Add Hard Work
So, call them what you may: characteristics, skills, qualifications, or abilities, but working on these six things will go a long way toward excelling as an internal auditor. Of course, they aren’t enough in themselves to ensure a quick rise through the ranks of the internal audit team. That requires hard work and dedication to the job. But they will certainly put you on the right track.
“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.
If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
• Switzerland 0041 4350 830 59 or
• US 001 917 508 5615
E-mail:
• info@audit-international.com”

Today, Audit International are hoping to clear up a few of the most common Internal audit myths. Let us know if there are any we have overlooked, and we bet we can debunk those ones too.

Myth: There is little creativity in internal auditing
This couldn’t be further from the truth. Internal auditors are called on to do a hard job, that much is true. That job can be operationally challenging, “dry” in content (which is subjective), and seemingly “behind the scenes”. However, as Workiva states, IAs are increasingly using brand power and social media to better communicate what they do and its centrality to business operations.
• “For instance, a team I used to work on rebranded from “Internal Audit” to “Risk Advisory and Assurance.” It helped answer questions about what we do and provided clarity to the types of services we provided”.
If internal audits are seen to be working in the shadows, the time is now to dispel those rumours of bean-counting and step into the fore!

Myth: IAs are the business police
Stinnett Associates describes how they go about amending this viewpoint perfectly, by urging internal auditors to focus on “process improvement” as the real essence and philosophy of the role, rather than letting stakeholders confer amongst themselves that IAs are only in it to stifle business, innovation, creative thought or operational independence.
Owning this new narrative is super important: IAs are integral to business success, and vital elements in non-auditors doing even better in their roles thanks to IA’s fastidious attention to regulatory and ethical performance.

Myth: Aren’t internal auditors just accountants by another name?
While accounting provides some critical skills needed to be a successful internal auditor, the industry draws from a wide range of backgrounds and skills, from tech and IT to engineering.
The real skills needed – diligence, a high regard for quality services, fastidiousness, great communication and creative thinking – means that people from a wide variety of backgrounds with training can enjoy a career in internal audit.

Myth: Internal audits are the same as external audits
No, they are not the same. While some parts of the day-to-day job of an internal and external auditor are parallel – both evaluate controls, report to seniors, and work with audit programmes – the outcomes and flexibility of internal auditing drastically differs.
As Moss Adams in their presentation titled Busting the Myths Surrounding Internal Audit states, “(IA) focuses on future events by evaluating controls to help the organisation accomplish its goals and objectives” rather than just meeting “materiality thresholds”.
By offering a service more “broad in scope” than external auditors, IAs provide direct, measurable business outcomes and improvements.

Myth: Internal audit is a lonely job
While “independence” of an IA’s role is a prerequisite, the truth of the matter is internal auditors straddle every department in an enterprise.
As mentioned above, the job is focused entirely on improvements, working closely with internal controls (which is a separate but often conflated field) to mitigate fraud and perfect business outcomes. This means that IA professionals get to work with their own team and every department in a company.

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
• Switzerland 0041 4350 830 59 or
• US 001 917 508 5615
E-mail:
• info@audit-international.com”

After the rollout of the vaccine and the end of lockdown restrictions, businesses are picking up and hiring into their Internal Audit departments and many candidates seem curious to take the next step in their audit careers.

COVID-19 has quickened audit firms’ adaption toward new ways of operating. Shifting to a remote and flexible working schedule by audit firms and the companies adds a new challenge already faced in adapting the audit to a tech-evolving corporate world and placing new demands on audit professionals. However, new ways of working will bring important benefits as well as posing challenges that have to be addressed.

Traditionally, firms have emphasized personal integrity and professional skepticism in audit professionals, and these attributes will undoubtedly remain vital. But in the new and fast-developing environment, auditors will also need to develop even deeper knowledge of business, a powerful curiosity about technologies and an agile mindset that embraces disruption.

This demonstrates the motivation of both candidates to find a new role and clients to hire into the Internal Audit profession. These figures have also likely been positively affected by the relative ease in which most interviews are now being conducted by video call rather than in-person. While auditors still retain their independence within organizations, they are nonetheless now expected to take a more collaborative, forward-looking approach to Risk Management and Governance. As a result, Internal Audit is increasingly seen as a value-add function rather than a cost center.

In order to achieve the expectation of audit objectives in hybrid environment, it is necessary for the auditor to plan well in advance with the following recommendatory steps.

-Gain an understanding of client business either through documented SOPs, policies to understand its Operations, Compliance and Financial area

-Being adept with trending technologies

-Being able to use the latest audit tools and techniques

-Adapting to the need for agility

-Being able to address regulatory compliance in a changing landscape

-Interdisciplinary approach to audit

-Effective communication skills at all business levels

-Ability to understand emerging technologies

-Ability to predict future challenges

-Ability to take a business-centric approach

-Ability to plan and execute, keeping the big picture in mind

-Ability to integrate adaptability into the audit design

-Ability to increase focus on key risk areas to improve assurance

-Ability to use process mining to analyze data

-Decide on the language to be used for the interview and ensure everyone involved speaks that language.

The auditors need to be more practical and realistic for carrying out audit involving Information Technology as a tool rather than as a barrier.

 

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following: 

 Calling  

  • Switzerland 0041 4350 830 59 or
  • US 001 917 508 5615

 E-mail:

  • info@audit-international.com”

Well during and after Covid-19, the day-to-day working structure of audit has changed a lot. With remote working arrangements and the absence of in-person meeting with clients, it’s been a real testing time for those who have joined the audit profession in 2020 and after. Many of the challenges faced by auditors are limited access to client facilities, personnel, financial records, and documentation. There is an increased need to understand the client’s risk profile and assess how the pandemic has affected their business, due to which auditors are now considering more critical view of clients business rather than just relying on numbers.

Benefits of remote auditing: There are many benefits of remote auditing, which can be summarized here:

  1. Better use of Technology: Now a day’s most of the entities are digitized and cloud based, allowing an auditor to access the records of clients at his own convenience.
  2. Virtual meetings: Auditors are wondering at the number of meetings they are attending now despite being confined at homes. Skype, Zoom and alike technology solutions have made it possible
  3. High reduction in Outstation travelling cost: Businesses were spending billions of money on travels annually; however remote auditing requires zero travel cost.
  4. Reduction in travel time: Auditors are now working in hybrid mode and travels only when required to attend the office in person

 

Disadvantage of remote auditing: The remote auditing also has some limitations which are summarized below:

  1. Limitation on physical audit: Virtual audit is not feasible for audits at floor factories or physical verification of warehouse at manufacturing company.
  2. Inadequate personal interaction with process owner: Personal interaction with the process owner is limited during a remote audit. Avoiding eye contact, adjusting seat, constantly restless are some of the indications can be observed more clearly during an in-person meeting
  3. Network interruption leading to inadequate discussion: If network connections are not reliable, they can interrupt interviews and meetings and can also limit access to the database for fetching objective evidence for review.
  4. Inadequate audit results: Remote audits should not be used as a cost-saving measure. They should only be considered if the audit objectives can be met, beyond any doubt.

 

Conclusion:

Based on the situation, remote auditing can assist in reducing digital risk, minimize traveling time and its cost, and encourage safety. But it has its own limitation. To win with remote, clients business needs to have the perfect combination of ICT and a forward-thinking tech culture. In the future, remote will continue to be an important component of auditing with its limitation to on-site visits. Tech savvy businesses will continue to leverage both solutions to create more robust and auditor-friendly strategies.

 

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

 

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following: 

 

Calling  

  • Switzerland 0041 4350 830 59 or
  • US 001 917 508 5615

 

E-mail:

  • info@audit-international.com”

Internal Auditors Could Make External Audits More Efficient, that is according to audit profession leaders.

If internal auditors are frustrated about the extent to which external auditors rely on their work, they should circle the wagons internally and initiate dialogue about how to get a better balance to improve audit efficiency.

That’s the advice of audit profession leaders who presented a keynote panel discussion at Compliance Week 2013 regarding some of the biggest audit challenges facing public companies today. “Well-controlled, well-managed organizations cost less to audit,” said Greg Weaver, chairman and chief executive officer at Deloitte & Touche. “Internal audit is a key part of a well-controlled, well-managed organization. Our coordination with internal audit is very helpful in making sure that the work we do is efficient.”

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THE MOST LUCRATIVE AUDIT in the FTSE 100 has been awarded to PwC.

The appointment cements PwC’s position as the most dominant auditors of the banking industry, with the firm already vetting the accounts of Barclays and Lloyds Banking Group.

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  • 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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Mandatory audit firm rotation was not among the measures the U.K. Competition Commission (CC) proposed Monday to promote competition in the statutory audit services market.

But the CC did include mandatory tendering every five years for the United Kingdom’s largest companies in its proposal, a significant shift from the 10-year retendering period U.K. Financial Reporting Council (FRC) rules currently require. The FRC’s 10-year retendering rule includes a “comply or explain” provision that provides some flexibility, but the CC proposal does not include a “comply or explain” provision.

Tendering is the process by which a company opens its audit to bidding by audit firms that seek a contract to perform the audit work.

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