Both mandatory and discretionary, auditing comes in many guises
A necessary undertaking for public companies, an integrated audit entails the auditing of both financial statements and internal control over financial reporting. Necessarily conducted by an external auditor, integrated audits are advantageous in that they encourage a holistic approach to the internal auditing process.
Conducted by either an asset manager or an outside firm, a performance audit verifies performance figures with those demonstrated to the public. Beneficial in that a performance audit allows an accurate insight into a firm’s returns.
Quality audits entail the systematic examination of a quality system, undertaken by either an internal or external quality auditor. Quality audits are integral in determining compliance with a defined quality system process and are a necessary requirement in maintaining the ISO quality system standard.
Regular health check audits are carried out for purposes in understanding the present state of a specific project. Primarily conducted by an independent party, regular health checks are intended to further increase productivity or otherwise effectiveness.
Energy audits consist of an inspection, survey and analysis of energy consumption. Largely intended for the bettering of energy conservation, input is often sought to be reduced though without the hindering of subsequent output. Energy audits are largely meant for reducing overheads.
Otherwise termed financial, regulatory audits are intended for assessing the legality of processes pertaining to financial operations. Encompassing management, collections and expenditure, regulatory audits seek to determine a true and fair representation of policy and financial management.
Research has shown that companies giving back to the communities in which they work tend to enjoy better long-term results
An organisation famed for valuing innovation and entrepreneurship, IBM helps its employees to give back to the community in the way they best see fit. IBM distributes Activity Kits, each one designed around different volunteering opportunities. For those who want to use their expertise to help educate others, there are kits advising on how to conduct workshops for adults who want to get into the industries IBM operates in. Employees wanting to inspire future generation can use kits to engage children in workshops that see students make anything from paper dog houses to solar-powered model cars. Or those who prefer a more hands-on approach they can volunteer to help in disaster zones.
According to Henry Ford, “A business that makes nothing but money is a poor business”. This inspired Ford’s Accelerated Action Day in 2012, which saw more than 600 employees in American branches step away from their desks to work in local community projects, supported by various charities. Volunteers were dispatched to shelters, schools and family centres, helping to clean, paint and build in their on-going renovation missions. Projects included renovating shelter rooms for the Salvation Army’s centre in Detroit, building houses with Habitat for Humanity and creating therapy rooms for children with the First Step Domestic Violence Program.
JP Morgan engages in many community projects globally, but recent years have seen emphasise focused on improving education on both sides of the Atlantic. Last year they helped to fund Achieve Together, a drive to recruit and inspire good teachers in disadvantaged areas of the UK. The first phase of the programme will roll out later this year, estimating to help 8,000 pupils. 2010 saw the firm launch a $325m initiative to support publically-funded schools in the US. The company granted $50m to community-development financial institutions to support new schools, as well as helping to tackle the financial problems of schools that already have a strong academic track record to keep them afloat.
5by20 is Coca-Cola’s initiative to empower five million female entrepreneurs worldwide by 2020. The multinational aims to focus its efforts on the small businesses across the world, currently focusing on Brazil, South Africa, the Philippines and India, by providing training with financial resources and mentors to women looking to get ahead in business. Since launching the program in 2010, Coca-Cola claim to have economically enabled more than 131,000 women. As part of the program, a new initiative in Kenya has helped female farmers grow mangoes for locally sold fruit juices, which has in turn helped create sustainable livelihoods around the farms.
As part of Johnson and Johnson’s No More Tears brand’s 50th anniversary, its Clean Water Initiative was launched as a combined effort with non-profit charity Water for People. Operating under the slogan “Because every baby deserves clean water”, the program has aided small, rural communities in ten of world’s poorest countries, including Malawi and West Bengal to tackle water contamination. The charity not only educates communities but also installs sanitation facilities in schools to provide clean water to hundreds of thousands of children.
Trustees of the IFRS Foundation have announced the appointment of Gary Kaburek as the sixteenth member of the International Accounting Standards Board
Nigerian Securities and Exchange Commission investigating allegations of fraud in one of Africa’s largest banking institutions
There has been an emergence of energy management software since the passing of new European legislation that large businesses must undertake energy use audits
As local authorities strive to make hedge funds based in the islands more transparent, some mangers object
Disgruntled shareholders at Swiss private bank vote to reject remuneration report at annual meeting
Newly introduced laws are to ensure resource-rich nations are less so made subjects of exploitation, requiring for a much greater extent of transparency among extractive industries
The US Federal Reserve is strongly encouraging banks to consider their internal auditing strategies to avoid regulatory intervention
Apple’s market value rose by an estimated $17bn after billionaire investor Carl Icahn tweeted his support for the company. Shares have since hit a seven-month high
Imminent order by German regulator is likely to lead to Deutsche Bank reaching a settlement over Libor scandal
Social media technologies offer unprecedented digital opportunities to share information, communicate and collaborate which are now being translated into a means of internal corporate communication management
Philanthropy and sustainability debated at forum arranged by UAE’s University Leadership Council
In a bid to become a more active investor, Norway has appointed a corporate governance advisory board to help oversee its $760bn sovereign wealth fund
The International Accounting Standards Board (IASB) has announced the availability of the 2013 edition of the Bound Volume of International Financial Reporting Standards (IFRS)
A recent survey has indicated that investors are dissatisfied with the current system of governance commonly undertaken by Japanese companies, many urging for more comply-or-explain systems equivalent to that of EU-based companies