Some Accounting Benefits Are Obscured In “The Cloud”

by Mark Gibbons 1. August 2016 14:21
The use of “cloud” storage technology supported by services such as iCloud, Amazon Web Services, and Dropbox has achieved ubiquity in our everyday lives for applications such as photo storage, transferring documents, and remote server hosting. The business applications are many, and accounting is among the professions that is enthusiastically embracing the cloud for a variety of obvious, and some less obvious, reasons. In addition to well-documented advantages such as cost, accessibility, bandwidth, and disaster recovery, assurance professionals are discovering that the use of cloud-based technology can make service delivery better in a variety of other ways. Audit teams are often in different locations utilizing the same data, which can cause version control as well as security issues. Cloud services can eliminate difficulties inherent in multi-location audits by allowing teams to contemporaneously access the same data, eliminating version control ambiguities. Using cloud services reduces the exposure to human error by keeping information from being directly loaded on multiple users’ laptops, which are particularly vulnerable to loss from theft and human error. Software updates can be implemented with minimal disruptions to an engagement. And, data privacy and cybersecurity are better than what many accounting firms could promise on their own, because the companies that host services for accounting and financial firms are held to strict SOC2 standards, their livelihood depends on their ability to keep sensitive information secure, and they have access to and budgets for the latest cybersecurity resources. The result is cloud services are increasing productivity and reducing costs, adding value to the audit process. It is this value that is driving adoption of cloud services by the accounting profession. According to the most recent Management of an Accounting Practice (MAP) Survey from the AICPA’s Private Companies Practice Section, use of cloud-based systems has increased by 66% in two years and is used by 59% and 77% of firms with $5-10 and $10+ million in revenue. Cloud technology is here to stay in the accounting profession, and clients are receiving the benefits.

Do Your Diligence – Cyber Risk in Mergers & Acquisitions

by David Ritzert 10. November 2015 11:34
As M&A activity increases, so too does the need for cyber security assessments. Cyber breaches are often in the news headlines, however, many companies have been slow to adopt cyber security risk procedures as part of their due diligence process. Companies that plan growth through M&A activity should assess the cyber risk associated with their acquisition targets. The value of the target, as well as the overall enterprise, could be significantly impacted by a cyber breach. In addition to the potential loss in market value, an acquiring company that comes under attack can experience a major disruption to their normal operations, including increased costs and management efforts being diverted to remediation and shoring up defenses, rather than the integration efforts necessary to achieve the anticipated synergies from the transaction. When cyber security procedures are incorporated into the due diligence process, companies can proactively understand and mitigate the potential risks of acquiring a compromised entity. If your company is involved in M&A activity and you don’t incorporate cyber security procedures into the due diligence process, you could be putting your company and the contemplated transaction at risk.
Categories: Assurance