Audit & Governance Weekly Financial News 28th August 2020

Company News

Published on: Friday, August 28, 2020 by Paul Stanbridge

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2021 BANKING BONUS
PWC announced global revenues increase by 3% this year (http:// https://moderndiplomacy.eu/2020/08/27/pwc-reports-global-revenues-up-3-to-us43-billion/) and Banks are enjoying strong markets, but what will bonuses look like next year? Reuters summarise the approaches some groups are taking already (https://uk.reuters.com/article/uk-health-coronavirus-finance-pay-analys/banks-in-bonus-balancing-act-as-economies-shrink-but-markets-boom-idUKKBN25M0HE) – thoroughly recommended reading for those concerned their bonus.

Wirecard
Latest on Wirecard: 730 staff and Cheif are axed (https://www-ft-com.libezproxy.open.ac.uk/content/e6d74224-24c6-41a7-bb2c-248e65ccad30) and … allegations of a desperate effort to buy Deutsche bank emerge (see below). Staying with Wirecard, a few weeks ago I highlighted the implied criticism of how audit had failed during the Wirecard scandal… Jan Bouwens, Professor of Accounting, at the University of Amsterdam dissects this very issue, in a letter to the FT this week (see below).

Something for Technology Auditors this week
A new cloud computing audit certificate is created by the ISACA (see below) and ECB release their survey findings (https://www.bankingsupervision.europa.eu/ecb/pub/html/ssm.aroutcomesrepitriskquestionnaire202007~9ed9aaa17d.en.html) on issues facing information and communications technology within Banking. Law firm Pinset Masons summarise the significant ICT risks in their blog on the subject (below).

I hope you enjoy this week’s offering!

Many thanks

Paul
In the news this week…
WIRECARD:
FRANTIC FINAL MONTHS AND A PLAN TO BUY DEUTSCHE BANK

In a frantic final few months “Project Panther” was a plan to buy Deutsche Bank and is seen as a desperate effort to disguise fraud at the German payments group… (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://www-ft-com.libezproxy.open.ac.uk/content/6a660a5f-4e8c-41d5-b129-ad5bf9782256)
CREDIT SUISSE UNCOVERS CLIENT FRAUD

Two years after CS was criticized by a regulator in a similar case that rattled the bank and raised questions about controls…. (https://www.theguardian.com/world/2020/aug/03/340m-in-london-law-firms-account-suspected-of-1mdb-connection) (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://www.bloomberg.com/news/articles/2020-08-28/credit-suisse-uncovers-client-fraud-at-wealth-management-unit)

DON’T UNDERPLAY AUDITORS’ ROLE IN FRAUD PREVENTION

Jan Bouwens, Professor of Accounting, Amsterdam Business School, University of Amsterdam, The Netherland…. (https://www.reuters.com/article/us-usa-banks-capital-one-fin/capital-one-to-pay-80-million-fine-after-data-breach-idUSKCN2522DA) read more (https://www-ft-com.libezproxy.open.ac.uk/content/6faf838a-061d-40bc-9287-27e7f745dace)
FT REPORTS – EU IS WEAPONISING MONEY LAUNDERING RULES

European nations felt entitled to dominate the world based on their notions of racial, military and economic superiority… (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://www-ft-com.libezproxy.open.ac.uk/content/a9f8ad3e-55f6-42c2-8bda-b08bae5adb37)
IT AUDIT:
NEW CLOUD AUDITING CERTIFICATE

ISACA and Cloud Security Alliance will be bringing CCAK (Certificate of Cloud Auditing Knowledge) to the market [ED They must have a sense of humour using that acronym!]… (https://www.bloomberg.com/news/articles/2020-08-19/billionaire-greensill-s-german-bank-draws-regulatory-scrutiny#:~:text=The%20growth%20of%20the%20Bremen,British%2DIndian%20entrepreneur%20Sanjeev%20Gupta.) read more (https://www.infosecurity-magazine.com/news/certificate-of-cloud-auditing/) (https://www.infosecurity-magazine.com/news/certificate-of-cloud-auditing/)
AUSTRALIA:
INCREASE IN REGULATORY SCRUTINY OF DATA AND CYBER SECURITY

ASIC underlined obligations of financial services providers to manage cyber risk, commencing proceedings against IFA, RI Advice Group . (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.lexology.com/library/detail.aspx?g=1393b6d5-9257-44df-aa32-b45bf722a6ba)
ALL BANKS CAN LEARN LESSONS FROM ECB ICT RISK SURVEY

Easy reading digest of the European Central Bank findings on the challenges around information and communications technology (ICT) in the Eurozone… (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.pinsentmasons.com/out-law/analysis/banks-learn-lessons-ecb-ict-risk-survey)

NEW CHALLENGES FOR AUDITORS – REMOTE WORKING
Remote working is forcing a rethink of the internal audit process. PCAOB recent meeting of U.S. companies audit committee chairs concluded that remote working risks were by far the biggest concern.. (https://www.cfo.com/strategy/2020/08/work-from-anywhere-future-exposes-holes-in-operational-strategy/) read more (https://www.cfo.com/strategy/2020/08/work-from-anywhere-future-exposes-holes-in-operational-strategy/)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

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