ACCA - Grant Thornton presentation template
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Transcript of ACCA - Grant Thornton presentation template
10.15 am Welcome Address
10.20 am Presentation: Key findings of the ACCA-GT Report: Future
of Audit
10.45 am Presentation: How Cognitive Computing is changing the
audit/ compliance landscape
11.00 am
Noon
Panel Discussion and Q&A
Lunch
Presentation:
Key Findings of the ACCA-GT Report: The Future of Audit
Jeff Vibert, Grant Thornton SingaporePartner & Head of Assurance
© 2016 Grant Thornton International Ltd. All rights reserved.
The Future of Audit: what did Singapore say?
October 2016
© 2016 Grant Thornton International Ltd. All rights reserved.
What we did
• The Future of Audit was discussed at a series of
roundtables in China, the EU, Singapore, South
Africa, the UAE, the UK and Ukraine
• Locations were chosen to cover a range of
business environments with differing
characteristics
• The roundtables were jointly hosted by Grant
Thornton and ACCA
© 2016 Grant Thornton International Ltd. All rights reserved.
Why we did it
• Change in Environment
• Change in expectations
• Regulatory change being imposed on auditors
• Evidence that the future of audit was seen
differently in different parts of the world – but that
evidence was previously only anecdotal…
© 2016 Grant Thornton International Ltd. All rights reserved.
Global findings in summary:
• Countries without audit are keen to invest in it
• Countries who recently adopted audit want to
maximise the benefits before further change
• Countries with a strong audit tradition want it to do
more than offer just a binary opinion on historical
financial information
• Different users have different requirements
• Audits need to adapt to the digital age
© 2016 Grant Thornton International Ltd. All rights reserved.
Different users, different requirements according to
Singapore:
• Audit providers should listen carefully to users and understand who the
users are, what information they use, and what they use it for
• The next generation of investors may want different information
• Audit has a future, but [the audit profession] must be prepared to
change, at times significantly to meet user needs
• We want to hear about early warning signals
• This would require the auditor ‘to really understand the business [and]
to get buy-in from management, to make meaningful comments in the
audit report
• [Do] we need [to see more] corporate collapses to usher in change?
• Auditors need to ‘evolve or risk losing their importance’
© 2016 Grant Thornton International Ltd. All rights reserved.
If there was doubt on the continuing usefulness of a
traditional audit report, the common misgivings were:
• Who? The report is addressed only to
shareholders
• What? The report is issued months after the period
end and mostly covers only historical financial
information
• Why? The report is a standardised product with
limited reference to particular user needs
© 2016 Grant Thornton International Ltd. All rights reserved.
Audit in the digital age, according to Singapore:
• Auditors need to be smarter about the way that
they do audits and use technology
• Technology is a tool to facilitate – it doesn’t replace
auditors
• Real time information risks short-term decision
making and ignoring long-term value creation
© 2016 Grant Thornton International Ltd. All rights reserved.
The auditor of the future, according to Singapore:
• Audit is not a necessary inconvenience – it is vital
• Business is getting more complex – are auditors
trained to deal with it?
• Pay your auditors more, keep the good people,
and make the profession attractive
• Auditors need to provide insights to enhance the
value of audit, and the relevance and
attractiveness of the profession
• [We] need more specialists on audit teams
© 2016 Grant Thornton International Ltd. All rights reserved.
Regional Observations
• APAC/ASEAN regions are amongst of the world’s
most important economic areas
• Wide diversity of professional standards, regulation
and sophistication. From the Mekong Delta
countries through to fully developed countries
• Business/profession in developing countries
rapidly emerging but still behind the rest
• Businesses are investing across the region and
auditors must cooperate across borders
© 2016 Grant Thornton International Ltd. All rights reserved.
Regional Observations
• Differential standards/ capabilities make accounting/
auditing quality and consistency very challenging
• Regulators in developed markets make little allowance for
these practicalities
• All falls on the companies and auditors
• Great work being done in the developing countries but still
a long way to go at all levels
• Assistance from developed to developing needed – who
pays?
© 2016 Grant Thornton International Ltd. All rights reserved.
Summary:
• Same model of audit not applicable everywhere
• Evolution will happen at different speeds
• Innovations can only follow proper capacity
• Standard setters and regulators must play role
• Changes in regulation must be well articulated
• Need a balance between audit quality, consistency and
innovation
• Apply standards in new ways but always with improved
quality as an objective
© 2016 Grant Thornton International Ltd. All rights reserved.
The Future of Audit:
• What do you think of the findings?
Presentation:
How Cognitive Computing is changing Audit/ Compliance landscapesScott Layton, IBM Asia PacificDirector of Audit and Investigations
©2015 IBM Corporation18 2 November 2016
IBM Internal Audit
Predict potential
threats and opportunities
Spot and analyze trends and anomalies
Assemble and interact with
relevant information
Compare “what-if”scenarios
Understand customer
sentiment and behavior
Plan, budget and forecast
resources
Assess and manage
risk
Measure and
monitor behavior
Turn insight into action, optimizing
results
Business
insight
Operational
efficiency
Manage
risk
Business
Analytics
Business Analytics
Business analytics is the practice of iterative, methodical
exploration of an organization's data with emphasis on
statistical analysis.
©2015 IBM Corporation19 2 November 2016
IBM Internal Audit
Cognitive computing introduces a new business paradigm
Cognitive: of, relating to, or involving conscious
mental activities (such as thinking,
understanding, learning, and remembering)
Learns and builds knowledge from various structured and unstructured sources of information
Understands natural language and interacts more naturally with humans
Captures the expertise of top performers and accelerates the development of expertise in others
Enhances the cognitive process of professionals to help improve decision making
Elevates the quality and consistency of decision making across an organization
Cognitive computing…
©2015 IBM Corporation20 2 November 2016
IBM Internal Audit
Cognitiveunderstand, reason,
learn
Predictivepredict, decide, act
Descriptivediscover, report, analyze
Cognitive computing extends traditional analytics by creating a value continuum
©2015 IBM Corporation21 2 November 2016
IBM Internal Audit
A Smarter Risk approach: Open PagesBringing together an interconnected view of risk across all disciplines
Financial ControlsManagement
Op
era
tio
nal
Ris
k
Po
licy and
Co
mp
liance
Man
agem
en
t
IT Risk & Security
OpenPages GRC Platform
Audit
Focus Areas
Operational Risk Management
Internal Audit Management
Policy and Compliance Management
Financial Controls Management
Technology Risk Management
Business Continuity Management
Enterprise Risk Management
Vendor Risk Management
©2015 IBM Corporation22 2 November 2016
OpenPages Internal Audit Management (IAM)Providing independent assurance to the business
OpenPages Internal Audit Management enables organizations to plan, execute, report
and review their audit universe
Key Features Integrated solution for audit management
Define, plan, execute and report on audits across the business– Track and manage audits, audit phases, work
papers and allocations
Automate operations through fully configurable reporting and workflow
Risk rank audit universe, configured according to the audit methodology
Business Benefits Empowers internal audit departments to champion risk management, acting as a strategic
partner to management Delivers an integrated, closed loop approach to risk management, driving visibility and
confidence in organizational risk posture
©2015 IBM Corporation25 2 November 2016
IBM Watson
Watson Virtual Agent
Watson Financial Advisor
Cognitive Cooking w/ Chef Watson
Watson for Genomics Technology
Watson Healthcare
Watson Oncology
“The goal is to have computers start to interact in
natural human terms across a range of applications
and processes, understanding the questions that
humans ask and providing answers that humans
can understand and justify."
©2015 IBM Corporation26 2 November 2016
IBM Internal Audit
Cognitive Auditing as a Differentiator
Sample targeting based on risk using machine learning
Learning to identify and predict fraud
Understanding unstructured data, and recommending treatment
Automated Auditing and flagging
Differentiation through technology partnerships
Improves Cost and Value
Panel Discussion:
The Future of Audit: Relevance Lost & Found
Chiew
Chun
Wee
ACCA
Singapore
ModeratorPan
ellist
Pan
ellistPanellist
Sue
Almond
Grant
Thornton
Panellist
Adrian
Chan
Lee & Lee
Singapore
Panellist
Jean
Philippe
Gauvrit
Nokia
Panellist Panellist
David
Smith
Aberdeen
Gajendran
Vyapuri
ISCA