Moore Australia, a network of four independent audit, accounting and advisory practices, has named Michael Sutherland as its national head of quality. The appointment became effective on 1 February. Sutherland moved into the role from Moore Australia (VIC/TAS), a member company of the national network, where he served as audit operations lead within the audit and assurance practice. Moore Australia chair David Tomasi said: “Robust quality frameworks sit at the heart of confidence in our profession, and ...

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. The idea of internal audit as the “gotcha” or “no” function is a dated one: in today’s era, where finance broadly is beginning to take on more of a strategic role, “there should be open dialogue,” between internal audit, the CFO and other key functions, Mike Schor, US internal audit market offering leader at Deloitte said. “There should be coordination as well.” “Of cour ...

Core Viewpoint - The International Auditing and Assurance Standards Board (IAASB) has made limited amendments to its standards to align with the International Ethics Standards Board for Accountants' (IESBA) updates regarding the use of external experts' work in audits and assurance engagements [1][2]. Group 1: Amendments Overview - The amendments are aimed at aligning IAASB standards with the revised IESBA Code and ensuring consistency between both sets of requirements [2]. - The changes affect several IAASB standards, including ISA 620, ISRE 2400 (Revised), ISAE 3000 (Revised), and ISRS 4400 (Revised) [3]. Group 2: Previous Revisions - In July of the previous year, the IAASB revised ISA 240 to clarify auditor responsibilities regarding fraud in financial statement audits [4]. - The revised fraud standard emphasizes a fraud-focused approach to risk identification and assessment, and includes measures for reporting transparency for publicly traded entities [5].

Group 1 - Mariam Mohammed Almalek – Accounting Auditing Office has entered the Qatar market, led by Mariam Mohammed Almalek, who has over 20 years of experience in financial roles [1] - The company holds a Qatari licence to provide audit services and offers a range of services including business planning, feasibility studies, financial and advisory services, legal consultancy, liquidation and insolvency support, and tax planning [2] - The firm conducts independent audits in Doha, aiming to enhance the reliability of client-prepared information for stakeholders, following international standards on internal auditing and employing risk-based methodologies [3] Group 2 - Legal consultancy services cover areas such as banking and corporate law, labour issues, dispute resolution, investment, and insurance, along with guidance on alternative dispute resolution and arbitration [4] - Feasibility studies are conducted to assist entrepreneurs and investors in evaluating market demand, financial viability, operational structures, and risk factors before making business decisions [4]

Core Insights - CPA Australia supports the ANAO's performance audit of ASIC's regulation of registered company auditors, which found ASIC's oversight to be "partly effective" [1][2] - The audit highlights the need for clearer performance indicators to enhance transparency and accountability in audit regulation [1][3] Group 1: Key Areas for Improvement - The ANAO report identifies several areas for improvement, including performance measurement, remediation processes, enforcement priorities, stakeholder engagement, and ministerial expectations [3][5] - CPA Australia recommends a tiered classification system for surveillance reporting to improve clarity and support meaningful improvements in audit quality [4] Group 2: Remediation and Enforcement - Enhancing remediation processes is crucial for timely and effective addressing of identified deficiencies, and CPA Australia welcomes ASIC's commitment to strengthen this aspect [5] - The ANAO report notes that ASIC's enforcement actions have primarily focused on administrative breaches rather than directly addressing audit quality issues [5] Group 3: Stakeholder Engagement - Ongoing dialogue is encouraged to align enforcement activities more closely with audit quality objectives [6] - The ANAO emphasizes the importance of enhancing transparency and collaboration with the auditing profession to achieve common goals [6]

Core Insights - The International Auditing and Assurance Standards Board (IAASB) has released illustrative sustainability assurance reports to aid practitioners in applying ISSA 5000 [1][4] - The new set of reports provides detailed examples relevant to daily practice, expanding on the previous four sample reports [2] - The reports cover various scenarios, including reviewing sustainability disclosures under IFRS S1 and S2, assessing sustainability reports, and combining different assurance types [3] Group 1 - The illustrative reports demonstrate practical applications of ISSA 5000, aimed at enhancing the consistency of sustainability assurance engagements [1][4] - The new examples include five cases where unmodified assurance conclusions are provided, addressing real-world application challenges [2][4] - Additional scenarios illustrate how to draft reports with modified conclusions, such as qualified conclusions and disclaimers [3][4] Group 2 - In September, IAASB updated the definition of publicly traded entities to align with the International Ethics Standards Board for Accountants' Code of Ethics [5] - This update affects both International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs) [5]

Core Insights - Grant Thornton has appointed four new partners in its advisory and audit practices, indicating a strategic expansion during a transformative period for the firm [1][5] Audit Division - Tom Kelly and Ian Wilson will join the audit division, with Kelly bringing nearly 30 years of experience from KPMG, focusing on insurance and reinsurance clients [2][5] - Wilson specializes in asset management, including funds, private equity, and structured finance, and has experience with various accounting standards [2][3] Advisory Division - Zoë Sheehan-Kohli will lead the business consulting segment for the asset management industry, with 17 years of experience in technology consulting across the US and DACH regions [3][5] - Howard Shortt has been appointed as a cyber partner in Ireland's advisory practice, focusing on cybersecurity issues and regulatory compliance [3][4] Organizational Changes - The new appointments align with the growth of Grant Thornton Advisors and follow the recent elevation of Steve Tennant to CEO for Europe, the Middle East, and Africa (EMEA) [4][5]

Core Points - The Financial Reporting Council (FRC) in the UK has penalized BDO LLP and two former audit partners for misconduct related to audit deficiencies [1][4] - The misconduct involved dishonest activities by a senior manager at BDO between 2015 and 2019, including fabricating audit evidence and issuing reports without proper authorization [2][3] Summary by Sections Investigation and Findings - An investigation was initiated after a senior manager at BDO was found to have committed dishonest activities across multiple audits [1] - The senior manager's actions included fabricating audit evidence and using unauthorized electronic signatures [2] - BDO's internal controls were inadequate, failing to act on internal reports that could have highlighted the senior manager's misconduct [2] Oversight Failures - John Everingham and Kevin Cook did not provide sufficient oversight on audits involving the senior manager, with Everingham failing to oversee 21 audits and Cook neglecting 13 audits [3] - Everingham signed off on ten audit reports from 2015 to 2018 without adequate supporting documentation [3] Penalties and Repercussions - BDO is required to pay a financial penalty of £5.85 million ($7.6 million) and reimburse audit fees for affected audits [4] - John Everingham faces a fine of £189,000 and a six-year prohibition from audit work, while Kevin Cook received a £90,000 penalty and a three-year prohibition [5] - BDO must file biannual reports to the FRC for two years detailing progress in addressing the identified issues [4][6]

Core Insights - Cooper Parry has expanded its audit operations in London and the South, increasing its team and expertise in the region [1][4] - The national audit team now consists of 800 professionals, with 230 based in London and the South [1] - The firm has welcomed Sarah Harries as audit director, who brings significant experience in auditing law firms and partnership structures [1][2] Team Developments - Sarah Harries joined from BDO UK and is knowledgeable in UK GAAP, Solicitors Accounts Rules, and LLP SORP, supporting professional services clients with regulatory compliance [2] - Callum Henderson has been promoted to Audit Director for Tech & High Growth, having been with Cooper Parry for 18 months [3] - Sakina Rashid, a key member of the audit team, has been contributing to client service delivery since joining a year ago [3] Strategic Focus - Gary Staunton, partner and Audit regional head, emphasized the need for auditors to be partners who understand growing businesses and prioritize their audits [4] - The firm aims to build a team of ambitious specialists that combine technical excellence with innovative thinking, focusing on adding real value beyond compliance [4]

Core Insights - EY has appointed Sue Kench as its new global independent non-executive (INE) and member of the EY Global Governance Council (GGC) [1][2] - Kench has nearly three decades of experience at King & Wood Mallesons, including serving as global chief executive from 2017 until December 2024 [1][2] - The INE role aims to provide diverse perspectives to support EY's audit and advisory services in capital markets [2][3] Group 1 - Kench will advise on policy, strategy, and public interest considerations within her new role [2] - She joins current INEs Tonia Lovell and Duane M. DesParte, who are based in Europe and the US, respectively [2] - EY's global chair and CEO, Janet Truncale, emphasized Kench's leadership and governance experience as vital for EY's transformation and client support [3] Group 2 - The independent members of the GGC are responsible for enhancing EY's standards and governance [3] - Truncale highlighted the importance of effective governance, transparency, accountability, and ethical decision-making for EY's operations [4] - Kench's integrity and experience are expected to significantly benefit the organization on a global scale [4]