Contemporary problems of corporate governance 

1.    Corporate governance - my  observations as an auditor:

Auditor?s task:  audit of financial statements and issue of an opinion

Supervisory Board: responsible for reliability and correctness of financial statements, but there are few obstacles that disturbs in these function:

?    Obstacle 1: insufficient financial knowledge of persons exercising corporate governance
?    Obstacle 2: complicated accounting standards
?    Obstacle 3: lots of information in financial statements  


2.    Confidence in financial information

Financial information underlies the conclusions for corporate governance. The likelihood of material error grows when we deal with estimations and complicated transactions.

The bigger chance in finding mistake in poor quality financial information. It can take place when we have very limited time to prepare financial statement or we do not have enough financial knowledge, but we need to apply very complicated accounting standards in our calculation.



3.    Financial information ? innovations:

We can notice huge development of cloud computing systems. Also in accounting we can observe develop of online systems, including full accounting. These are the points where we can meet problems for eg.:

?    Problem 1: most often covers only routine economic events
?     Problem 2: would not address the areas with a highest inherent error risk
?     Problem 3: would not enhance confidence in financial information  

4.    Financial information ? Expert System

What if the gap were to be filled in with an Expert System supporting accounting and reporting:

?    Following the ways of experts?
?    With an extended base of practical knowledge?
?    Easy to use and guiding by the hand?
?    Supporting independent decisions in a way that would be done by an expert?
?    Verifying if the financial information is correct and assessing error materiality?


5.    Expert System ? benefits for for accountants, financial officers, and boards

What would everyone of us, who works in accounting, audit or finances, gain with such Expert System?

?    Enhanced confidence in financial information 
?    Lower risk of errors or manipulated estimates
?    Enhanced compliance with the applicable standards and thus better comparability with other entities
?    Higher quality of financial reporting
?    Lower risk of material error!


6.    Expert System ? Example

24iValue ? an example of an expert system for accountants and auditors:

?    It puts stress on practical solutions to accounting and reporting problems.
?    It provides assistance in the areas with inherent error risk [Corporation tax and deferred tax, asset impairment, provisions for liabilities, cash flow statement]
?    It assesses error materiality in audited financial statements

7.    Expert System ? Example 24iValue

?    24iValue is a packet of electronic services related to accounting and taxes, provided on-line over the website
?    It has been developed on the basis of many years of auditing experience 
?    It supports independent and fast verification or preparation of key accounting and tax calculations 
?    24iValue has been designed for small, medium sized and large entities with full accounting 
?    The target group includes: accountants and financial directors, accounting companies, reporting departments, financial controllers, internal auditors, management and owners, supervisory bodies, auditors, tax consultants. 


You can also find these presentation on Slideshare click here


Thank you for your attention
Sławomir Ekman
FCCA, CPA
Founder of 24iValue

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