By Brigitte Jakoby, Jakoby Dr Baumhof
Companies today are challenged with ever-increasing demands regarding sustainability reporting. The variety of options for sustainable strategies, coupled with the fast-moving nature of products, create a daunting task when subjecting these areas to permanent adaptation. Managing these challenges can be very complex and requires the use of digital technologies to keep pace with this issue. A new generation of environmental, social, and governance (ESG) software solutions for a number of areas, such as sustainability management in the supply chain or ESG reporting, is developing rapidly. Companies are mostly aware of the need to search for innovative methods in this area. In contrast, advanced analytics for holistic control and management of supply chains, artificial intelligence for optimising energy consumption, or the use of blockchains for tracking materials throughout the value chain are all still in their infancy.
By Dr Peter Wagesreiter, HSP Rechtsanwälte GmbH
On 23 February 2022, the EU Commission presented its proposal for an EU Supply Chain Law (Directive on Corporate Sustainability Due Diligence). Since then, there has been lively discussion about the proposal, especially in the business world and legal community.
By Samet Arslan, Financial Axis Independent Audit & Consulting Inc
Rapid developments in the world regarding corporate sustainability reporting have also affected Turkey and various regulations have been implemented. The Ministry of Commerce played a leading role by preparing the Green Reconciliation Action Plan in 2021, in cooperation with all relevant public and private sector institutions. The plan is compatible with the transformation policies that are taking place in the world economy, especially in the European Union. The plan promotes green investments and will contribute to the transformation of global value chains, thus, acting as a roadmap that will support value-added production in Turkey.
By Carole Hong Tran, FIDAG SARL
The Covid-19 pandemic precipitated the digital transformation of audit processes in France and paved the way for real-time virtual auditing. The digital auditing trend had started before the pandemic but most companies, especially SMEs, were not ready. The coronavirus pandemic forced them to adopt teleworking and integrate digital technologies to restructure internal processes.
By Thomas Parry, Navolio & Tallman LLP
The AICPA Auditing Standards Board and Accounting and Review Service Committee recently issued four interrelated, final standards on quality management, collectively referred to as the QM standards. The objective of these standards is to converge with the International Standards on Quality Management.
By Kolja Spee, nbs partners
The Corporate Sustainability Directive (CSRD) was published by the EU Commission in 2021. CSRD oversees the future requirements in terms of corporate sustainability reporting (CSR) for European entities. The date of application is now postponed to fiscal years beginning 01 January 2024 (PIEs), and to financial years beginning 01 January 2025 (large companies).
By Aldo Dubacher, Mattig-Suter & Partner
What are the effects of the digital transformation of companies in the age of big data on the authenticity of audit evidence and data analysis techniques? Does this result in a new audit expectation gap?
by Brigitte Jakoby, Jakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater Rechtsanwälte
Even after many years of developing and using of AI, the question persists of how reliable such systems are. The most discussed topic regarding AI tools is the so called blackbox problem – the fact that humans are often not able to understand how AI generates results. The systems are characterised by great individuality, and therefore there is the risk that automatically performed tasks will be difficult to comprehend and to control. So the question of how to assure the quality of highly complex AI systems is of great importance.
By David Truong Lang, Viettonkin Consulting
Undeniably, IFRS – the International Financial Reporting Standards – is very popular with businesses worldwide with recommendations as per OECD’s guidelines. Vietnam Accounting Standards, the so-called VAS, is used specifically for the local accounting system under Vietnamese jurisdiction. Under the impact of globalisation, the transition from VAS to IFRS is inevitable. Thus, in 2020, the Vietnam Ministry of Finance issued Decision No. 345/QD-BTC approving the plan to apply IFRS in the country.
By Brigitte Jakoby, Jakoby Dr Baumhof - Wirtschaftsprüfer Steuerberater Rechtsanwälte
In the last Auditing, Reporting and Compliance (ARC) Practice Group meeting, Prof Dr Michel De Wolf gave an excellent summary of the IAASB draft standard for audits of LCEs. In contrast, Germany issued (draft) German LCE standards in December 2021 which differ from the IAASB approach in some aspects.