PowerPoint Presentation

Trends in Accounting and AuditingBy Sulaimon Ibrahim September 13, 2015

Good day to everyone. My narrative presentation will be Trends in Accounting and Auditing1

Current Growing Trends

1. Standardization of International Financial Reporting2. The Impact of Technology Integration3. Digital Mobility

The three current noteworthy trends that have been growing steadily and rapidly in my profession are:The need for standard international financial reportingThe impact of technology advancement and integrationDigital mobility opportunities

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Standardization of International Financial Reporting

The slide shows the upwards movement and trends in International Financial Reporting Standards (IFRS) since 1998. Actually, the International Accounting Standards Committee was formed in 1973, but Security and Exchange Commission (SEC) started getting involved and setting policy since 2008Their goal is to create a set of principles based standards that transcend any one nation's set of standards in order to be equitable to all. Currently, more than 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies. The European Union (EU) requires companiesincorporated in its member states whose securities are listed on an EU-regulated stock exchange to prepare their consolidatedfinancial statements in accordance with IFRS.1 Australia, New Zealand and Israel have essentially adopted IFRS as their nationalstandards.2 Brazil started using IFRS in 2010. Canada adopted IFRS, in full, on Jan. 1, 2011. Mexico will require adoption of IFRS for all listed entities starting in 2012. Japan is working to achieve convergence of IFRS and began permitting certain qualifying years beginning April 1, 2010. A decisionregarding the mandatory use of IFRS in Japan is to be made around 2012. Hong Kong has adopted national standardsthat are equivalent to IFRS and China is converging its accounting standards with IFRS. Other countries have plans to adopt IFRS or converge their national standards with IFRS. In addition to the support received from certain U.S.-based entities, financial and economic leaders from various organizations have announced their support for global accounting standards. Leaders of the Group of 20 (G20) called for global accounting standards and urged theU.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to complete theirconvergence projects3

Standardization of International Financial Reporting (Contd)

The Importance: Common standards in the preparation of public company financial statements will make it easier to compare the financial results of reporting entities from different countriesIt will also serve the need of investors, banks, international business community in acquisitions and mergers

The Impact of Technology Integration

The slide shows that those who are very prepared in integrating technology are twice more optimistic in leveraging it to achieve the company objectives in all categories: business processes, overall growth and profitability, governance requirement, provide unique new services and capabilities5

The Impact of Technology Integration (Contd)

The slide shows increase trends toward more advisory due to continuous customers interaction because technology has streamline the business processes, therefore allow time to focus more on customer service. Also worth noting is that, assurance services is a growing trend due its continuous clients service as oppose to just regular auditing once a year interaction with company. This has resulted in more revenue generation for the accounting firms.6

The Impact of Technology Integration (Contd)

The Importance:Technology integration has increased the efficiency and effectiveness of Accounting and Auditing in public and private enterpriseMore revenue and time for strategic planning will increase focus on clients services

The importance of Technology Integration cannot be over emphasized in accounting and auditing industries in term of efficiency, effectiveness and increase in revenue.7

Digital Mobility-BYOD

In digital mobility age, Bring Your Own Device (BYOD) integration as part of total company technology strategy is crucial especially for accounting firms. The world is now a global village; and accounting firms and auditors who audits conglomerates and international company has to be technologically savvy to take advange of BYOD in the area of agility and service flexibility8

Digital Mobility-Cloud ComputingWhen CPAs envision the near future, they see the cloud. In The CPA of the Future, a study released in December by AICPA subsidiary CPA.com, 90% of the CPAs surveyed agreed that the delivery of digital business processes to clients will become a key differentiator among accounting firms in the next five years.

For accounting firms to survive in todays highly competitive world economy, digital business processes is a necessary to incorporate as part of customer service deliverable 9

Digital Mobility-Cloud Computing

Video Clip

The video clip emphasis why accountants and auditors need to adopt cloud computing. Just click, sit back and enjoy10

Digital Mobility

The Importance:Collaborating and working in any part of the worldContinuous customer interactionIt reduces capital costsIncrease revenue through exceptional customer serviceIt increase employees' productivity and quality of life

Well, ability not to be restricted to a four corner walls is the beauty of digital mobility-This translates to more customer interactions, reduce cost and increase revenue, increase in productivity and quality of life for company most important assets-employees.11

ConclusionsFor a company to respond and positively take advantage of the trends, the following need to be done:Management emphasis and leadership vision on technology as a tools to achieve company objectivesEffective Communication and Corporate CultureInterrelationship among departmentsEffective reward and recognition program for talented employees

In conclusion, I will add that:If good leadership and management are missing, there will be no direction on technology initiatives, if communication is missing, then no understanding, interrelationships build effectiveness and when you reward employees for their efforts, you provide incentive and desire to perform to their optimum capabilities. Thank you for your time. Any questions?12

ReferencesOmoteso K. (2013). Auditor effectiveness: Meeting the IT Challenges. Farnham, Surrey: Gower Publisher.Sprague, C. (2015 January 1) Research Starters: Business (Online Edition), Retrieve from http://connection.ebscohost.com/c/essays/29964495/assurance-servicesDefelice, A. (2010 October 1). Cloud Computing: What Accountants Need to Know. Journal of Accountancy, Retrieved from http://www.journalofaccountancy.comAghimien, P; Bashnini, K (Fall 2013) International Journal of Business, Accounting, & Finance, Vol. 7 issue 2, pp1-14. Database: Business Source Complete. Retrieved from http://connection.ebscohost.com/c/articles/93874638/development-international-financial-reporting-standards-origination-present-day

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ReferencesMichael M. (2013 May 10) Important BYOD Considerations for Accounting Firms Retrieved from http://www.accountingtoday.com/accounting-technology/news/Important-BYOD-Considerations-for-Accounting-Firms-66673-1.html

Crosley, G. (2015 September 1) Pathways to Growth: Its a Bird! Its a Plane! Its the Digital CPAAccounting TodayRetrieved from http://www.accountingtoday.com/news/firm-profession/pathways-to-growth-its-a-bird-its-a-plane-its-the-digital-cpa-75669-1.html