We have seen allot of column inches over the past 7 days on audit.

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We have seen allot of column inches over the past 7 days on audit. One wonders what is going to happen to the broader audit sector dominated by the big 4, following the recent collapse of banks in the U.S and the questions raised over audit and oversight. The regulatory fallout may be deep as questions get raised over SoX and financial audit oversight of financial institutions risk and ALM processes.

EY has been allowed more time by the SEC to complete an independent internal review of its practices over the oversight of its staff testing procedures. EY was fined $100mn by regulators 2022 following an investigation into exam testing procedures, that resulted from a whistleblower. The company was found to have ignored warnings of exam cheating and failing to address similar issues raised in 2019. The independent audit timeline has slipped and comes at a time when EY was considering splitting its consulting and tax advisory businesses.

Cyber regulation is pending, some of which recommends independent external audit. One wonders how this important work will be completed to the satisfaction of regulators?

Ted Dziekanowski Stephen Pitt-Walker, JD, FGIARachel V. Rose, JD, MBA

#audit #governance #compliance #cybersecurity #cyberriskmanagement

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