Questões da Prova FGV - 2018 - Prefeitura de Niterói - RJ - Auditor Municipal de Controle Interno - Auditoria Governamental

(Source: https://www.multirede.com.br/wpcontent/uploads/2017/09/blcokchain2.png. Retrieved on January 25th 2018)

By Ken Tysiac

November 17, 2017

The emergence of blockchain technology has led to a concern in the CPA profession that is perfectly understandable.

Technological advances can threaten people’s livelihoods in any number of professions. The development of the Internet had a devastating effect on newspaper journalists, and some experts say self-driving vehicles may cause huge job losses among truck drivers.

Blockchain, meanwhile, has implications for the accounting profession. Blockchain is a digital ledger on which transactions are recorded chronologically and can be viewed by all who have access. The technology is expected to affect auditing, cybersecurity, and financial planning and analysis.

Erik Asgeirsson, president and CEO of CPA.com, the technology arm of the AICPA, said that some CPAs have anxiety that blockchain might put audit professionals out of business. But while blockchain is likely to change the way CPAs work, he said, he is telling accounting firm leaders that the accounting profession can continue to thrive through the use of blockchain technology.

“It’s going to be a fantastic, secure database that will have uses,” he said during a panel presentation Tuesday at the Wall Street Blockchain Alliance’s Blockchain for Wall Street education day in New York City. “But it’s not going to put them out of work.”

Large and medium-size CPA firms already are seeing the implications of blockchain for their clients, Amy Pawlicki, CPA, vice president–Assurance & Advisory Innovation for the Association of International Certified Professional Accountants, said during the panel session. Companies are implementing blockchain into their enterprise resource planning (ERP) systems, particularly for tasks such as procurement and supplier management.

Blockchain’s ledger-based technology can simplify the procurement process because it enables secure recording of transactions in a way that can lead to unprecedented transparency and increased operational efficiency.

“Our auditors are already auditing transactions in the blockchain,” Pawlicki said.

Blockchain’s transparency gives visibility to all transactions for approved users, and this may decrease auditors’ work with sampling and validating transactions. But this allows auditors more time to focus on controls and investigating anomalies. Meanwhile, opportunities are emerging for CPAs to use blockchain technology as they expand their assurance services to areas such as cybersecurity and sustainability.

“We’ve got a lot of work to do … it’s a great opportunity in an area where CPAs can add a lot of value,” Pawlicki said.

An important next step for the profession in the use of blockchain is accommodations for the technology from standard setters and regulators. SEC Chief Accountant Wesley Bricker, CPA, J.D, said Tuesday that the commission’s Office of the Chief Accountant is investing time in understanding blockchain technologies, and suggested that accounting professionals do the same.

“It is important that those in the accounting profession invest the time to understand new trends and developments in technology and commerce to identify their potential effects on financial reporting to investors,” Bricker said during a speech at a Financial Executives International conference in New York City.

Past developments such as the emergence of computers, ERP systems, and cloud computing have merely changed CPAs’ work instead of making them irrelevant. The same can be true with blockchain, Asgeirsson said.

“Through every phase,” Asgeirsson said, “what’s really happened is that the accountant’s and the auditor’s role has just evolved.”

(Source:https://www.journalofaccountancy.com/news/2017/nov/blockch ain-opportunity-for-accountants-201717900.html. Retrieved on January 22nd, 2018)

Glossary:

CEO: Chief Executive Officer

CPA: Certified Public Accountant

ERP: Enterprise Resource Planning

AICPA: American Institute of Certified Public Accountants

(Source: http://cpa-scribo.com/assess-control-risk/. Retrieved on January 27th, 2018)

Posted on July 26, 2013

When it comes to the pressure of successfully identifying, anticipating and dealing with risks, few auditors shoulder as much burden as those who work with the government. As the Institute of Internal Auditors’ Richard Chambers wrote, these professionals deal with career-threatening political risks on a daily basis that many private sector auditors could never comprehend.

Internal auditors play a pivotal role in the relationship between the government and citizens. It’s up to auditors to set the appropriate controls to manage federal programs and also to provide insight into the effectiveness and the soundness of the government’s inner workings. Put simply, auditors are key to ensuring the public’s trust in their government is well-founded and not abused.

That being said, there are a number of challenges associated with governmental-level internal auditing. Citing a MicKinsey paper from 2011, Chambers points to a few key issues:

1. Turnover and Outsiders: Turnover in the political sector is high, with appointed executives seldom lasting for more than two years. On top of that, newly appointed officials often come from outside departments or agencies. This means officials frequently don’t have a firm grasp on all the risks and challenges associated with their position, which can lead to poor decision making.

2. Metrics for Success: In the private sector, business objectives are clear and are conducive to metrics: more sales, more customers, more revenue, return on investment, etc. This means it’s extremely easy to determine the efficiency of audit programs and controls. In the public sphere, metrics aren’t as obvious because financial and mission objectives are more complex. This complicates the job immensely.

3. ‘Mission Over Risk’ Mindset: Most companies undervalue the importance of risk culture. Departments want to achieve their objectives, and risk management takes a back seat to that. In the public sector, officials are often even more dedicated to and passionate about the mission at hand. Additionally, people tend to assume that government budgets are big enough to bail departments out of bad decisions, which can lead to risky behaviors. […]

Internal controls are pivotal to maintaining the public trust in government operations, so despite the challenges that lay in front of auditors, it’s crucial they work with managers to develop effective campaigns and programs.

(Adapted from: https://www.resolver.com/blog/the-challenges-facinggovernment-auditors/. Retrieved on January 25th, 2018)