Do we need audits?

Should companies eliminate audits? A interesting viewpoint by Fortune.com  The current system for analyzing and auditing companies’ internal controls needs an overhaul. Do the millions that large companies spend on annual audits actually provide the information investors need and are paying for? And are the earnings reports that companies produce trustworthy? If recent events offer any indication, the answer to both questions is likely a resounding no. On June 8, the U.K.-based CCP research foundation reported that from 2010 to 2014, 16 global banks, including Bank of America, JP Morgan, and…

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Companies (Indian Accounting Standards) Rules, 2015 (released on 15th Feb 2015)

MCA has issued Companies (Indian Accounting Standards) Rules, 2015 under the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956). These Accounting Standards (Ind AS) that are inline with upcoming International Financial Reporting Standards, which will alter the way transactions get accounted in India.  During the first phase all companies, listed and unlisted, with net worth over of Rs 500 crore and their holding, subsidiary, joint venture or…

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Whistle Blowing to external partiesVs Raising Concerns to the Internal Audit team

A recent article on Sydney Morning Herald  “Whistleblower’s NAB leak reveals persistent bad behaviour in financial planning, fuels royal commission calls” raises the question about how seriously was internal audit taken in NAB.I am sure the internal audit reports would have highlighted these concerns in addition to the serious issues the internal audit team found in NAB’s It systems in their 2010 report.It also raising an interesting point about how people see internal audit in companies. Was the whistleblower from NAB more comfortable in going to the media rather than…

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Supply Chain Audits

Supply chain professionals do lots of supplier audits. They ask about quality standards, IP data protection, manufacturing process certifications, contract review requirements, document control measures, and source of origin of parts and raw materials. But, surprisingly, they may not be asking how suppliers deal with bribes and corruption issues, according to a recent report from Achilles, a global supplier information management company. Globally, about a third of large companies surveyed said they issue tenders or contracts without having an anti-bribery and corruption policy for their main suppliers, noted Achilles in…

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Corporate frauds rose by over 45 per cent in India in the last two years – Is your Internal Audit function upto it?

As per a recent article in Economic Times Corporate frauds rose by over 45 per cent in India in the last two years and the lurking risk has been dissuading global companies from investing in India, said a study. Corporate frauds arose out of corruption, money laundering, tax evasion, window dressing, financial reporting fraud and bribery due to weaknesses in internal controls, scarcity of resources and over-riding powers of senior management, it added. The study by Assocham and Grant Thornton said companies related t ..  Read more at:http://economictimes.indiatimes.com/articleshow/45889366.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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Report: Independent commission didn’t allow independent auditing

As reported by – watchdog.org http://watchdog.org/192474/independent-commission-didnt-allow-independent-auditing-report-says/ The top internal auditor for a state agency that has a say in your electric bill might have had to choose between keeping a job and telling the honest-to-goodness truth. The chief internal auditor of the State Corporation Commission has been reporting to the chief administrative officer, instead of directly to the agency’s three General Assembly-appointed commissioners. The arrangement sets up a potential conflict of interest, a new audit from the Auditor of Public Accounts says. The chief internal auditor, meant to operate as independently as possible, could have risked putting his…

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Internal report helped Mexico to gets green light: DOT ‘opening door’ to cross-border trucking

Sourced from http://fleetowner.com/http://fleetowner.com/fleet-management/mexico-gets-green-light-dot-opening-door-cross-border-trucking Less than a month after an internal audit concluded a pilot program lacked enough participants to be statistically conclusive, the Dept. of Transportation said Friday that Mexican motor carriers will soon be able to apply for authority to conduct long-haul, cross-border trucking services in the United States. Fully opening the border to approved carriers is “a significant milestone” in the implementation of the North American Free Trade Agreement, according to the DOT statement. The policy change ends a 20-year political dispute over the NAFTA trucking provision, and is…

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Internal Audit touches Football Associations

Internal Audit findings were used by Prince Ali to create the basis for the banning for life from involvement in professional football of former FIFA executive committee member and AFC President Mohammed Bin Hammam. However, he failed in getting the Asian group to act on recommendations of an internal audit conducted by PriceWaterhouseCoopers (PWC) to possibly file criminal and civil charges against the disgraced official and renegotiate if not cancel the AFC’s $1 billion master rights agreement with Singapore-based World Sports Group. The burial of the audit by Bin Hammam’s…

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Why SMEs should embrace financial audits

© Zawya BusinessPulse 2015 © Zawya BusinessPulse 2015A financial audit involves a comprehensive examination of a business’ financial transactions and positions, and is something that large corporations are required to do every year. SMEs are subject to less demanding reporting requirements, but a full annual audit is something that they should still be doing as a matter of course. There are two kinds of auditing – internal and external. An internal audit is so called because it’s conducted by an employee of the company rather than an external auditor. When…

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Embezzlement cases steal cash from most exposed

Sourced from http://www.finditwestvalley.com/politics/embezzlement-cases-steal-cash-from-most-exposed-h49749.html The scheme Batts-Porter is accused of operating was simple, federal officials say. She managed Social Safety payouts in the trustee’s workplace. The workplace was sanctioned by the Social Security Administration to deal with extra than $1 million in payments per year for residents who are incapable of overseeing their finances. Possibly Center Township Trustee Eugene Akers summed it up greatest: “Right here we are once again. Everyone wants to steal from the poor people.” On Friday, federal officials announced criminal charges alleging that Carmen Batts-Porter, the enterprise counselor…

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