Posts Tagged ‘internal audit’
Keeping Humans in the AI Loop
I spent this week in Lithuania attending a conference for compliance officers in Eastern Europe, and this being Europe, of course that meant artificial intelligence and data privacy were all over the agenda. So it’s rather poetic that European regulators also just published fresh guidance on human oversight of automated decision-making systems. The guidance was…
Read MoreAI vs. the Three Lines Model
Anyone who enjoys pondering the future of the internal audit and compliance professions may want to take note of a debate that erupted online last week about the Three Lines of Defense. It’s a fascinating discussion about how artificial intelligence might affect the Three Lines model, including whether AI might render the whole idea obsolete. …
Read MoreFines Cut for Ex-Wells Fargo Execs
U.S. banking regulators settled charges with two former top audit executives at Wells Fargo for their oversight failures during the bank’s fake accounts scandal of the 2010s, cutting the millions in fines the two men were facing by more than 90 percent. The Office of the Comptroller of the Currency announced the deals late last…
Read MoreBrace for Change, Internal Audit
The Institute of Internal Auditors is holding its annual global conference this week in Washington, D.C., which of course means publication of a long, ponderous study about the current and future state of the profession. This study’s findings, however, point to some deeper truths about the internal audit profession that merit attention. Let’s take a…
Read MorePCAOB Alert on Company-Produced Evidence
The PCAOB has published fresh advice for audit firms about how to evaluate data and reports provided by their client companies. Internal audit teams might want to take note, since such PCAOB “advice” has a habit of soon becoming new demands placed upon you by your auditor. The report, blandly titled “Inspection Observations Related to…
Read MoreAccounting Controls: A Hollywood Tale
Sometimes the importance of internal accounting controls can be a little hard for compliance professionals to grasp, but fear not! A crazy tale from Hollywood this week gives us a great example of why internal controls matter and what can go wrong when they’re not working properly. The tale comes from Tom Hollander, the fairly…
Read MoreSOX Costs Drop; Struggles Don’t
Sarbanes-Oxley compliance costs fell for many companies last year, according to an analysis released this week — although time spent on SOX compliance work actually rose, suggesting that many companies are struggling to implement automation technologies even as demands from their audit firms keep rising. In other words, as usual, SOX compliance is a bit…
Read MoreAnother Example of AI’s Issues
If you’ve been following news about artificial intelligence lately, then by now you may already have seen this: an Asian-American computer scientist at MIT, who uploaded a picture of herself into an AI tool and asked it to make her look “more professional.” The software turned the woman white. The computer scientist in question, Rona…
Read MoreA Closer Look at SOC Audits
Anyone involved in cybersecurity or privacy compliance knows that one handy tool to assess your vendor risks is a SOC audit. Now, at long last, we have a report that explores an important question: Just what do all those SOC audit reports actually examine, anyway? The report comes from CBiz MHM, a mid-sized accounting and…
Read MoreNY DFS Strikes Again on Cyber Fails
New York state regulators are at it again, serving up yet another enforcement action over poor cybersecurity practices that can serve as a quick case-study for the rest of us trying to figure out a sustainable way forward on cyber compliance issues. The company in question this time is OneMain Financial Group, a publicly traded…
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